UK shop closures hit record levels this year: survey

21 Oct '20

2 min read

Pic: Shutterstock

UK shop closures have hit record levels with over twice as many net store closures in the first half of 2020 compared to last year, according to research by Local Data Company and PwC UK that shows 11,120 chain operator outlets have closed this year so far and 5,119 opened, creating a net decline of 6,001, almost double the decline tracked last year (3509).

The data shows COVID-19 has accelerated previous trends that have changed the way consumers shop. Therefore, although retail sales already recovered to pre-COVID 19 levels by July, there have been greater shifts in categories and channels.

However, store openings of multiples, which have remained at broadly the same level over the past five years, also show that despite the acceleration in closures in 2020, there remains consistent demand for retail, hospitality and services that can only be delivered physically, according to a PwC press release.

Lisa Hooker, consumer markets leader at PwC, said: “We know that the pandemic will continue to impact the way we work, rest and play, however, in terms of how we shop, this isn't new. What we have seen is an acceleration of existing changes in shopping behaviours alongside forced experimentation from COVID-19 restrictions.”

“We all knew that consumers were shifting to shopping online or changing their priorities in terms of the things they buy, but what COVID-19 has done is create a step change in these underlying trends to where they have now become the new normal”, she added.

On a sector by sector basis the categories which have seen consistent growth over the last five years include value retailers and discount supermarkets, highlighting the continued drive to seek value by consumers. In addition, the economics of delivering low-value goods mean that online alternatives are not available in many cases.

Due to COVID-19, this year’s data covers the period from January to August, with no fieldwork undertaken during the national lockdown. In later months, sites that had yet to reopen have not been counted as closed, and may be included in future surveys.

In addition where previously this research only covered the top 500 high streets, this year's findings include all high streets, shopping centres and retail parks in the United Kingdom. Data has been recalculated for the last five years to allow comparisons.

Fibre2Fashion News Desk (DS)

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