New data from PwC and the Local Data Company reveals that while 5,839 shops closed on UK high streets in 2014, 4,852 new stores opened, resulting in a net loss of 987 shops. This is nearly triple the net closures of 371 in 2013, despite the economic recovery.
The biggest casualties were mobile phone retailers, which lost a net 419 stores, largely due to the bankruptcy of Phones 4U in September. Tougher regulations on short-term lenders and a drop in gold prices led to the closure of 233 cheque cashing and pawnbroking shops.
Online shopping and out-of-town retail contributed to a net loss of 237 fashion and clothing shops and 53 travel agents. Video rental stores were wiped out entirely, with 69 closures.
Charity shops led new openings with a net gain of 64 stores, followed by coffee shops, tobacconists, e-cigarette sellers, discount stores, and bookmakers. However, supermarkets are no longer expanding convenience stores, with Morrisons announcing the closure of 23 M local stores.
Mike Jervis, a partner at PwC, warned that high streets are “running out of time” and need to adapt by converting shops to restaurants or residential use to remain relevant.
