In a challenging scenario for the retail industry, almost 40 stores have permanently closed each day in 2024, highlighting an increasing trend of high street decline.
- New data from PwC indicates a sharp increase in store closures, totalling 6,945 for the year, surpassing the previous year’s daily closure rate.
- While new store openings have seen a modest increase, they still fall short, with only 25 openings a day, underscoring a net loss of retail spaces.
- Value retailers and convenience stores are witnessing positive growth, with more than one store opening weekly, providing some relief to the sector.
- Despite a stabilising rate of net closures, stakeholders are urged to revitalise and repurpose retail spaces to adapt to evolving consumer preferences.
In a significant development for the retail industry, almost 40 stores have closed each day in 2024 according to the latest data, marking a notable blow to high street viability. This reflects a rising trend from last year, where the closure rate was marginally lower at 36 per day.
Data sourced from PwC reveals a massive total of 6,945 outlets shutting their doors this year. This alarming figure far exceeds the number of new openings, which saw a slight rise to 4,661 or an average of 25 daily openings, thus emphasising the ongoing net loss of retail locations.
Interestingly, value retailers and convenience stores have exhibited some growth contrary to the general trend. An additional 39 value retailer outlets and 85 convenience stores have opened, averaging more than one new store per week, which sheds light on shifting consumer demands towards affordability and accessibility.
During the first half of the year, net store closures were recorded at 12 per day, culminating in 2,284 fewer retail spaces across high streets, shopping centres, and out-of-town locations. Notably, fewer than 100 fashion stores closed during this period, a significant decrease from the first six months of 2021 which reported over 1,000 closures.
Lisa Hooker, PwC’s leader of industry for consumer markets, remarked that the stabilisation in net closures is a positive sign. However, she emphasised the need for stakeholders, including policymakers and communities, to actively participate in revitalising retail environments. She highlighted the importance of creating spaces that meet modern consumer expectations for convenience, variety, and enjoyable experiences.
The retail landscape in 2024 faces ongoing challenges as store closures continue to outpace new openings, calling for strategic efforts to revitalise high streets.
