Shop closure rate slowed in 2013

The rate of store closures across UK’s high streets slowed last year, indicating an up-lift in retail confidence, according to new research

by PricewaterhouseCoopers and the Local Data Company.

Figures contained in the PwC report showed that the closure rate for multiple retailers with more than five stores slowed to 16 stores a day on average across the top 500 town centres in 2013, down from 20 a day in 2012. Year-on-year, the number of net store closures fell by nearly 80 percent, from 1,779 in 2012 to 371 in 2013.

However, the report noted that women’s clothing and fashion shops, as well as footwear businesses continued to be amongst the hardest hit in 2013, accounting for around two thirds of closures during the year.

By the end of last year there were 113 fewer womenswear stores, and 83 fewer stores classed as ‘fashion shops’ selling both men’s and women’s clothing. Shoe shops were also in the top 10 fallers with 66 fewer stores.

Matthew Hopkinson, director of The Local Data Company, said: “2013 was a turning point for retail in town centres across Great Britain. The data reflects the ongoing structural changes taking place in our town centres and the continuing consolidation of ‘anchor stores’ into fewer but larger shops, which are either in megamalls or out-of- town retail parks.

“The oversupply of shops nationally has resulted in reduced rents and created opportunities for what many perceive as less desirable shops to fill the vacuum left by the retreating ‘anchor chains’.”