The rate of retail closures in the United Kingdom has decreased significantly over the past year, with 11,530 stores closing in 2022 – the lowest rate in eight years. According to PwC data, banks experienced the most closures, while takeout restaurants, convenience stores, and arcades performed better than anticipated.
Senior Retail Advisor at PwC, Kien Tan, commented: “The past year has demonstrated that high streets are more important than ever as places to work, shop, and play. These numbers demonstrate that “.
Despite overall improvements, there were still more closures than openings in 2022, resulting in an average daily net loss of 10 stores. Last year’s net loss of 797 banks and financial services shops was primarily attributable to the decline of high street banking.
In contrast, restaurant chains have for the first time in five years experienced growth. Last year, the pizza chain Franco Manca opened seven restaurants, including locations in Brighton, Lincoln, Cardiff, and Peterborough. Chairman of Fulham Shore, the owner of the Franco Manca and Real Greek restaurant chains, David Page, stated, “We continue to see significant opportunities to expand our restaurant portfolio over the long term.”
However, not every company has fared so well. M&Co, a budget fashion chain, and Paperchase, a stationery chain, both failed, resulting in the closure of nearly 300 stores. Numerous businesses are under pressure due to rising costs and falling sales.
Lucy Stainton, the commercial director of the Local Data Company, believes that changes to business rates and the return of more workers to the office will provide a boost to businesses and that the overall trend of improvement will continue in the coming year.
PwC’s data provides a snapshot of the evolving landscape of main streets, retail parks, and shopping centres. Despite improvements in store closures compared to recent years, there is still a daily net loss of 10 stores, according to the data. This is due to the decline of high street banking, which resulted in a net loss of 797 banks and financial services shops in the previous year. For the first time in five years, restaurant chains have experienced growth, while other businesses, such as M&Co and Paperchase, have closed due to rising costs and declining sales. This year, changes to business rates and an increase in the number of workers returning to the office are anticipated to provide a boost to businesses, and Lucy Stainton predicts that the overall trend of improvement will continue.
