More than 11,000 shops permanently closed on British high streets, shopping centres and retail parks in 2020, according to a study by the Local Data Company (LDC). The analysis, covering 680,000 outlets across 3,000 locations in England, Wales and Scotland, found that chain stores were hit hardest, with a net loss of 9,877 outlets, while independent retailers lost 1,442 premises.
Government support, including business rates relief, a moratorium on evictions, and furlough pay, helped slow the pace of closures for independents by 11% compared with 2019. However, LDC warned that the full impact of the pandemic is yet to be felt, with up to 18,000 more shops, restaurants and leisure outlets at risk of closure in 2021 as major retail groups like Debenhams and Topshop collapse.
Fashion and clothing stores led the decline, followed by bookmakers, estate agents and mobile phone shops. In contrast, barbers, beauty salons, fast food outlets and nail bars saw growth, while supermarkets and grocers benefited from their 'essential' status during lockdowns. City centres were hardest hit, with vacancy rates rising to 16.1%, while villages fared better, with vacancies increasing only 0.4 points to 11.1%.
The shift to working from home boosted local convenience stores, which saw net openings for the first time in four years. However, the study highlights challenges in reinventing town centres, as less than a quarter of closed department stores from 2017-2019 found new occupiers without being split into smaller units. LDC expects a similar fate for the 124 Debenhams stores that closed at the end of 2020.
