Recent data reveals the challenges facing physical retail locations in Great Britain.
- Nearly 7,000 stores closed in the first six months of 2024, slightly more than in the previous year.
- The net decline in store numbers remains marginal due to a slight uptick in new openings.
- Fashion retail, while seeing improvements, still suffers from ongoing challenges such as unpredictable weather.
- Online retail continues to grow, affecting foot traffic in traditional shopping venues.
In the first half of 2024, a substantial number of retail establishments, totalling 6,945, ceased operations across Great Britain’s high streets, shopping centres, and retail parks, marking a daily closure rate of 38 stores. This represents a minor increase from the 36 stores that closed each day during the same period in the previous year.
Store openings have modestly increased, rising from 24 to 25 per day. This slight growth in openings has contributed to keeping the net decline in physical retail spaces around the 1% mark every six months, indicating a gradual but persistent reduction as consumer behaviour shifts further towards digital platforms.
Although the fashion sector has seen a notable decrease in closure rates compared to 2023, it remains vulnerable to external factors such as adverse weather conditions. The sector experienced a significant downturn in sales during unseasonably wet periods early in the year.
The trend towards online shopping has intensified, with non-food online retail penetration reaching its highest level since late 2021. Footfall in physical stores remains significantly below pre-pandemic levels, with high streets experiencing a decline in visitors of up to 20% compared to pre-COVID numbers.
While high streets and shopping centres continue to face challenges, retail parks are showing signs of recovery, with a 0.4% increase in chain outlets in the first half of the year. This improvement is attributed to enhanced consumer interest and accessibility.
Lisa Hooker from PWC stated, “It’s clear that online retail is here to stay, outpacing physical stores annually,” highlighting the need for physical retail spaces to adapt to changing consumer preferences by offering more engaging and enjoyable shopping experiences.
The evolving retail landscape underscores the importance for traditional stores to innovate and align with emerging consumer trends.
