The number of shops closing on UK high streets and retail parks surged in 2022, with more than 17,000 sites shutting down, according to the Centre for Retail Research (CRR). This represents the highest number of closures in five years and a nearly 50% increase compared to 2021.
Retail job losses also rose sharply, with over 150,000 posts lost, up 43% from the previous year. The CRR attributed the rise to a combination of factors, including soaring inflation, reduced consumer spending, and increased costs for energy and wages.
Large retail chains closed 6,055 shops, while independent retailers accounted for 11,090 closures. However, only about a third of closures were due to insolvencies. The number of stores closing because a parent chain went under fell by 56% compared to 2021, despite high-profile failures such as M&Co, Joules, and McColls.
Nearly a third of closures were branches of chains rationalising their estate to cut costs, such as Marks & Spencer, which simultaneously opened new stores elsewhere. More than a third were independent shops winding up their businesses. CRR director Joshua Bamfield said rationalisation, rather than company failure, is now the main driver for closures.
Bamfield expects the trend to continue in 2023, though some large retailers may also fail. From April, the government will offer temporary relief with a 75% discount on business rates, up to £110,000 per business. However, empty properties are only exempt from rates for three months, prompting calls from property experts for an extension of the rate-free period.
