High rents and rates see more shutting up shop
Friday 17 February 2012
The UK's retail chains closed an average of 14 stores a day in 2011, as retailers exited more shops than they opened for the first time.
The number of outlets of bookshops, electricals, home furnishings and menswear chains, as well as off-licences, pubs and travel operators, fell last year.
But charity stores, pound shops, bakers, credit unions and supermarkets continue to expand, according to a survey by PwC and the Local Data Company.
As the downturn bites, the reduction in stores shows how multiple retailers are responding to high rents and hikes in business rates.
The findings also underline the pressure on non-food retailers from the big supermarkets and the shift to sales moving online.
PwC found a 0.25 per cent fall in store numbers last year, a net reduction of 174 shops, across 500 towns.
Mike Jervis, an insolvency partner at PwC, said: "A common feature of retailers in distress who we are dealing with is that they have too many locations."
According to PwC, 28 per cent of consumers bought at least half their shopping online at Christmas.
Christine Cross, the chief retail adviser to PwC, said: "Inevitably, the reduction in consumer confidence and growth in online spend has placed pressure on retail return on space."
The rate of closures is expected to rise, as half of retail leases in the UK come up for renewal by 2015.
Matthew Hopkinson, at the Local Data Company, said: "In the past the closures were offset by openings, but 2011 has shown a true decline in multiple retail and leisure outlets across Great Britain."
- 1 Ashya King missing: Police hunt five-year-old boy with brain tumour snatched from Southampton hospital by his parents
- 2 Notting Hill Carnival: Woman shares selfie after being ‘punched in face for telling man to stop groping her’
- 3 Daily Show's Jon Stewart destroys Fox News for its Ferguson coverage
- 4 Botched ice bucket challenge leaves man critically injured after plane drops hundreds of gallons of water
- 5 Friends reunion: Jennifer Aniston, Lisa Kudrow and Courteney Cox perform mini sketch on Jimmy Kimmel Live
Ashya King missing: Police hunt five-year-old boy with brain tumour snatched from Southampton hospital by his parents
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Daily Show's Jon Stewart destroys Fox News for its Ferguson coverage
Californian drought is so severe it's 'causing the ground to move'
Botched ice bucket challenge leaves man critically injured after plane drops hundreds of gallons of water
Exclusive: We share blame for creating 'jihad generation', says Muslim strategist
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Do you realise just how foolish the UK looks?
Ukip Douglas Carswell defection: Tory MP jumps ship to join Nigel Farage
- < Previous
- Next >
iJobs Money & Business
£450 - £500 per day: Orgtel: SAS Business Analyst, London, Banking, Credit Ris...
£32000 - £38000 Per Annum Bonus, Life Insurance + Other Benefits: Clearwater P...
£200 - £250 per day + competitive: Orgtel: KYC Analyst, Key Banking Client, Bi...
£400 - £500 per day: Orgtel: Test Manager - Banking - West Yorkshire - £400-£5...