Data: Store closures slow in ‘remarkable’ post-pandemic retail recovery

Figures from Local Data Company (LDC) found the lowest level of store closures in five years in the first half of 2022 and indicated that market activity has recovered from the nadir of the pandemic.

Net closures of retail and leisure stores improved to -923 in the first six months of 2022 – the best result since the first half of 2017.

The number of store closures fell from 26,703 in the first half of 2021 to 24,832 in the same period this year – the lowest closures figure since 2018.

In terms of chain retailers, after years of falling store numbers across the country, the first half of the year saw marked improvement. There were 2,993 fewer closures in this category in the period compared with last year.

While experiencing a net decline of 2,258 units in the first half of the year, this improvement helped close the gap between multiples and independents. 

Independents continued to thrive in the market in the first half, with a net increase of 1,335 units – up from a net increase of 804 in the same period last year.

Across all stores, there was a net loss of 1,190 units in the first half of the year, an improvement of 2,078 on the previous year.

LDC said fashion in particular made a strong recovery following the administrations and mass closures of the previous years, while domestic shoppers and tourists made a return to physical retail, as evidenced in declining levels of online spend.

Shopping centres, too, have enjoyed a marked recovery from the first half of 2020 when retailer CVAs and administrations combined with sudden Covid-19 closures. Percentage net change in shopping centre units fell from -3.3% to -0.3% in the year to H1 2022.

LDC commercial director Lucy Stainton said: “Our latest analysis of the physical retail and leisure market shows a remarkable level of recovery at a time when further economic headwinds have been well-documented.

“With store closures decreasing compared to the same time last year, in parallel with an increase in openings, the net decline in trading retail and hospitality businesses has softened significantly.

“The pandemic proved the final straw for a number of ailing retailers and this CVA and insolvency activity, which typified the most challenged end of the market during the Covid years, has now seemingly washed through.

“Independents, in particular, have continued to flourish as consumers remain loyal to their local high streets. However, we can’t be naïve to oncoming economic pressures as consumers face a winter with less disposable income and increased caution.

“It feels that, just as the market has started to find its feet, we are now about to face a new round of tests – but perhaps the lessons learned during the pandemic will prove fundamental to both chains and independents in enduring these, too.”

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