A record-high number of UK store closures in 2020

A record amount of store closures were reported within the first half of 2020 due to the Covid-19 pandemic, new data reveals.

So far this year, 11,120 chain operator outlets have closed, according to research by the Local Data Company and PWC UK which tracked 210,365 outlets across the UK from January to August this year.

There has been over twice as many net store closures in comparison to last year. So far this year, 5,119 shops have opened, resulting in a net decline of 6,001 stores.

Lisa Hooker, consumer markets leader at PWC, said in a statement: “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.”

Covid-19 leads to rise in retail store closures

Photo credit: Local Data Company

Lucy Stainton, head of retail and strategic partnerships at The Local Data Company, commented: “There are signs that this is just the tip of the iceberg, as 22 percent of the multiple market is still closed temporarily.”

The data also reveals there has been a consistent increase in shop closures since 2017, with2018 and 2019 seeing an increase of around 1,000 store closures each year.

The categories which have been steadily growing over the last five years are discount supermarkets and value retailers. This year’s research covered all high streets, shopping centres and retail parks in the UK.

“As with any economic turmoil, there are opportunities for retailers who are able to weather this storm, with the availability of prime property, increased activity and spend in local centres and changing consumer habits,” Stainton concluded.

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