Chain stores are closing more slowly than they have in eight years, new studies show.
A total of 11,530 stores will close in the UK in 2022. That’s an average of 32 closures per day.
But it’s a big improvement compared to the previous three years, according to data compiled for accounting firm PwC.
Banks recorded the most closures, while takeaways, convenience stores and arcades performed best.
“What we’ve seen over the last year is that the high streets, as a place where we work and play, matter more than ever. These numbers are proof of that,” said Kien Tan, Senior Retail Adviser at PwC.
The twice-yearly snapshot covers more than 3,500 locations and shows the changing landscape of high streets, retail parks and malls.
The data not only tracks which chains have closed stores, but also how many have opened. They include everything from shops, cafes and restaurants to gyms, banks and bars. All shops with more than five branches are considered chains. Independent retailers are not included.
As the chart below shows, there are still far more closes than opens. This resulted in a net loss of an average of 10 stores per day in 2022. Openings are in the right direction but are still well below pre-pandemic levels.
The decline of high street banking was the biggest factor in the closures. Last year there was a net loss of 797 banks and financial services businesses.
As the numbers below show, that’s more than the next three categories – betting shops, charities and fashion – combined.
In other words, out of the 10 net closures per day last year, three banks were banks as the massive internet shift continues. Around 5,000 banks have closed since 2015.
Our main streets continue to change with an upward trend in leisure.
Lucy Stainton, commercial director at Local Data Company, which collected the data, said there has been sustained demand for on-the-go and home-delivered groceries in the wake of the pandemic.
She said many of the new businesses, including convenience stores, are franchise operators who are often local and nimble entrepreneurs who could fill the gaps, helped by lower rents.
Restaurant chains are also growing again for the first time in five years. Pizza chain Franco Manca opened seven branches last year, including Brighton, Lincoln, Cardiff and Peterborough.
“We continue to see significant opportunity for long-term expansion of our restaurant estate,” said David Page, chairman of Fulham Shore, owner of Franco Manca and Greek chains Real.
But he added that the business will expand more cautiously this year due to the economic environment.
There have already been some casualties in retail this year. Budget fashion chain M&Co and Paperchase, the stationery chain, both collapsed with nearly 300 store closures. Increasing costs and declining sales are putting many companies under pressure.
Ms Stainton believes changes in business rates and more workers returning to offices will give businesses a boost and believes the overall improvement story will continue in the coming year despite any headwinds.
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