Less stores closing while bricks-and-mortar outlets grow

PwC, in association with the Local Data Company, revealed in its latest figures for stores opening and closing across Great Britain that closures are now at 32 per day with 22 new outlets opening per day across Great Britain with the retail park and leisure operators continuing to thrive.

The twice-yearly research tracks over 200,000 outlets in over 3,500 locations to gain a picture of the changing landscape of high streets, retail parks, shopping centres, and standalone outlets.

The latest research showed the lowest number of closures since the research began, marking a positive turn for retail post-pandemic. The 2022 full-year results showed a total of 11,530 chain outlets (those businesses with five or more outlets) exited GB high streets, shopping centres, and retail parks — a significant drop from the 2021 figure of 17,219 outlets.

The number of outlets closing (32) remains significantly lower than the almost 50 per day that was closing in the pandemic period and new store openings have improved with 7,903 store openings (equivalent to 22 per day) this year — they are at the highest since 2019.

Net closures now sit at -10 per day, marking the lowest rate since 2016 and just 1.7 per cent of the total number of chain outlets, compared with the 5.7 per cent that closed in 2021. 

Retail parks remain the most resilient outlet type with a small -0.3 per cent closure rate with shopping centres (-1.6 per cent) also recovering at a promising rate. High streets were slightly lower at -2.6 per cent, but all outlet types saw a significant improvement in their net closure rates. 

Lisa Hooker, industry leader for consumer markets at PwC commented on the positive figures and said retail and leisure operators are increasing in confidence and investing back into bricks and mortar after a few years of uncertainty across the sector.

“We are seeing innovative store openings including services and the use of technology that delights the consumer and appeals to the younger shopper who tells us they still love stores,” she said.

“While high streets are also recovering well, the need to coordinate a fragmented landlord base and others with vested interests, alongside the type of occupant, means a slightly slower recovery.

“Rent levels have also normalised, and with changes to the business rates due to come in April, this should also encourage new openings across many locations, adding to the impressive bounceback of retail parks, shopping centres and the growth of local entrepreneurship.”

Lucy Stainton, commercial director for the Local Data Company, said CVA and administration activity dropped in 2022, helping drastically reduce the total number of closures across the market. 

“Alongside the benefits of the first full year free from restrictions, the return of office workers and tourism boosted footfall, supporting new store openings,” she said.

Eight of the 100 outlet categories tracked by the Local Data Company saw net growth in double digits. Of those, leisure outlets accounted for half of those categories. 

Takeaways continue to top the league table for new openings with demand for both food on the go and home delivery continuing post-pandemic.

Rick Jones, hospitality, sports, and leisure leader at PwC, said the marked growth in the leisure sector is great news for towns and cities across Great Britain. 

“This is particularly marked for those that have a growing student population or are emerging family towns,” he said. 

“The food and beverage revival is testament to how quickly successful businesses with strong and relevant consumer offerings have mobilised their efforts, including taking advantage of site availability and more favourable rents to satisfy the resurgent post-lockdown demand.”

On the other hand, service providers are driving the closures across the sector. A structural shift online is responsible for the majority of closures in many of the categories, such as the four fastest declining categories of banks, betting shops, charity shops, and fashion retailers. Even so, all four categories saw a significant slowdown in closure numbers compared with 2021.