A record net 2,481 stores disappeared from Great Britain’s top 500 high streets in 2018 as the sector continued it long decline.
PwC research, compiled by the Local Data Company (LDC), shows 3,372 shops opened last year, compared to 5,853 closures. In 2017, the net loss was 1,772 stores.
The number of store openings by multiple retailers dropped by 17.4% year-on-year with the current rate of openings at nine stores per day. This also represents a 44% decrease from the 16 stores per day opening in 2013.
Relative to 2017, the rate of store closures in 2018 remained at 16 stores a day. However, the shortfall between openings and closures reached its highest level since the beginning of the decade, as withdrawals from the high street were further dented by a historic low number of store openings.
Lisa Hooker, consumer markets leader at PwC, commented: “The results are clear – 2018 was a turbulent year for retailers with a number of high profile store closures. We saw an acceleration in footfall decline on the high street with businesses continuing to see the impact of online shopping, increasing costs and subdued consumer spending.
“It’s interesting that the marked reduction in openings has accelerated the net closure trend. In categories as diverse as fashion and financial services, new entrants are able to gain share by launching online – enabled by technology and consumer adoption of mobile and e-commerce – rather than be saddled with the costs and risks of opening on the high street.
“The high street of the future will be a more diverse space, not solely dependent on stores. The analysis reflects this with the net growth of gyms and sports clubs, ice cream parlours and cake shops, in addition to initiatives to bring more shared office spaces and homes into what were traditionally shopping areas. However, it’s clear that the rate of openings is not currently enough to offset the closure of traditional retailers and services, so some tough decisions will need to be taken in the next few years.”
