British high streets and shopping districts are showing tentative signs of recovery, with more than 13 retail stores opening each week over the past year, according to new figures. However, this modest resurgence comes against a backdrop of significant decline, as over 6,000 retail premises have vanished from communities across England and Wales in the last five years.
Stabilisation After Pandemic
Analysis of Valuation Office Agency data by tax firm Ryan reveals that there were 507,810 retail premises across England and Wales at the close of 2025. The data suggests that a recent contraction within the sector has begun to stabilise, marked by a net increase of 723 retail stores compared to the previous year. This growth was observed across every region of England and Wales, with the sole exception of the North West, which experienced a decline of 41 properties.
This stabilisation indicates that parts of the retail sector are starting to rebalance following the profound structural changes witnessed since the pandemic. The creation of new retail units has been partly driven by real estate firms like Hammerson, which have converted large, often empty, former department stores into a greater number of smaller, more adaptable units.
Meanwhile, other major retail groups, such as John Lewis, have reportedly stepped back from earlier ambitions to transform some retail properties for alternative uses like rental accommodation.
Persistent Pressures
Despite these positive shifts, the retail sector continues to grapple with considerable pressures. Many firms face higher business rates, increased labour costs, and persistent concerns over consumer sentiment, which could dampen future growth.
The broader picture still highlights a significant long-term decline, with a net reduction of 6,045 retail properties since the end of 2020. London recorded the largest five-year regional reduction, losing 1,266 retail premises, followed by the South East (-1,191), North West (-719), and North East (-672). These figures account for retail premises that have permanently disappeared, either through demolition or conversion to alternative uses.
Business Rates Revaluation
The data coincides with Ryan’s 2026 annual business rates review, which noted a 9.3 per cent increase in rateable values for the retail sector during the 2026 business rates revaluation, despite the dramatic changes in the retail landscape since the pandemic.
Alex Probyn, practice leader for Europe and Asia-Pacific property tax at Ryan, commented: "The pandemic accelerated structural changes that were already emerging across the retail sector, including changing consumer behaviour, hybrid working patterns and a reduced reliance on traditional retail floorspace in many locations. Many locations were arguably over-retailed before Covid and high streets have evolved towards more mixed-use environments, with retail space being rebalanced alongside growing demand for residential, leisure, hospitality and service-led uses."
Probyn added: "The revaluation outcome does suggest a large proportion of retail premises have seen bigger increases in their assessments than underlying market conditions and rental evidence would have led occupiers to expect. Retailers should therefore carefully review and, where appropriate, challenge their assessments."
