The UK's high streets experienced 5,855 store closures in 2017, the highest number since 2010, as the rise of internet shopping and a weak pound took their toll. According to analysis by the Local Data Company for PricewaterhouseCoopers, a net 1,700 chain stores closed, with an average of 11 openings per day against 16 closures. Independent shops were not included in the data.
Fashion and footwear retailers were the worst affected, as rising food price inflation—partly driven by the post-Brexit fall in the pound—curbed spending on non-essentials. Overall clothing and footwear spending fell by about 2% over two years, with online growth offsetting in-store declines. However, beauty stores, cafes, coffee shops, ice-cream parlours and bookstores saw net increases.
The pace of closures accelerated in the second half of 2017, reflecting a shift to online shopping and higher staff and business rates costs. Consumer confidence hit a four-year low in December. Lisa Hooker of PwC said: “2017 was tough for the British retail industry, particularly the second half of the year. Wage growth failed to keep up with inflation, forcing many shoppers to think more carefully about their spending habits.”
Problems continued into early 2018, with PwC calling it the toughest first quarter since the 2009-10 recession. Major names such as Toys R Us and Conviviality entered administration, while New Look closed dozens of stores. Mothercare, Carpetright and Homebase considered closures, and lingerie brand Ultimo announced it would wind up, citing cautious consumer spending.
Shoe chains Brantano and Jones Bootmaker closed around 170 stores, and discount fashion chain Store Twenty One shut 125 outlets. Jaeger and Style Group also closed some shops despite being rescued. Bigger chains like Clarks, Marks & Spencer and Debenhams closed a handful of stores as shoppers turned to online browsing and buying.
Glen Took of Kantar noted a cultural shift towards experiences over products, with people spending time with family or friends and shopping online later. The rise of online services led to a dramatic drop in banks, travel agents and estate agents on high streets. Travel agency chains saw 326 net closures, while 201 banks shut, including over 60 HSBC branches. High street expert Mary Portas urged the government to cut business rates, but said retailers must adapt or die.
