Store closures soar to record levels as high street crisis continues

A net 1,123 shops disappeared from the top 500 high streets in the first half of 2018 as only 1,569 shops opened, compared to 2,692 closures – or 14 shops a day, according to PwC research compiled by the Local Data Company.

These closures were most marked in categories affected by online shopping, such as fashion stores and electricals outlets.

Pubs and restaurants were also hard hit due to the shift to in-home leisure by consumers.

PwC consumer markets leader Lisa Hooker said: “Our latest research highlights the challenges facing the retail and leisure sectors on Britain’s high streets.

“The continued rate of store closures reflects the new reality that many of us prefer to shop online and increasingly eat, drink and entertain at home. The high street is adapting to an overcapacity in retail and leisure space resulting from these channel shifts.

“Openings simply aren’t replacing the closures at a fast enough rate. Specifically, the openings across ‘experiential’ chains, such as ice cream parlours, beauty salons and vape shops, haven’t been enough to offset closures in the more traditional categories.”

Hooker said the turmoil on the high street is unlikely to abate and said store closures in the second half of 2018 due to administrations and CVAs that had already been announced will further intensify the situation.

“The British high street is in urgent need of new ways of thinking and new forms of retail,” she said. “Encouraging this should be a priority. However, it remains to be seen if recent packages of support for the high street and reductions in business rates for smaller retailers will be sufficient to stimulate this.”