Store closures hit record high of 48 per day in 2020

According to data compiled by PwC and Local Data Company (LDC), the net fall in store numbers was 9,877 last year after the total number of stores closed was partially offset by 7,665 new openings.

This net fall represents nearly one in 20 stores closing in 2020 and marked a 4.5% decline in total shop numbers. 

The report warns that an average daily decline of 48 chain-store closures per day could continue in 2021 as many ‘non-essential’ stores closed temporarily during lockdown are unlikely to reopen.

Greater London lost the greatest proportion of shops in the year, down 5.8% overall, while the East of England proved the most resilient with 3.7% of its shops closing.

Shopping centres fared worst for closures across all retail destinations as 7.1% of units closed, followed by high street net closures of 5.7%.

Retail parks, which have proved an increasingly popular retail destination during the pandemic due to free parking and a high density of supermarket tenants, were the most resilient with 3.3% of shops closing overall.

The report noted that the shift in consumer lifestyles due to the pandemic had led to small towns and suburbs enjoying a “mini-renaissance” in retail demand, while inner-city locations have suffered due the rise of homeworking and stay-home directives issued by the government. 

LDC’s head of retail and strategic partnerships Lucy Stainton said: “The damage to footfall in city-centre locations, particularly in London, meant that a number of chains opted to temporarily shut their stores irrespective of their ‘essential’ status.

“The question now becomes: have we seen the worst of the damage? These numbers only include store closures we know to be permanent and, when government support schemes end, we expect a further increase in closures.”