Almost one high street store a day closing in East Mids

Derby, Nottingham and Market Harborough have seen the highest net reductions in retail stores closing in the East Midlands, according to a new report.

Research conducted for PwC by the Local Data Company (LDC) showed that in 2016, 353 outlets closed across the East Midlands, a rate of almost one a day, compared to 289 openings, equating to a net reduction of 64 shops.

Despite economic uncertainty surrounding the Brexit vote, this compares to 350 outlet closures and 285 openings in 2015, a net reduction of -65 shops.

The analysis of 4,458 outlets operated by multiple retailers (shops with more than five outlets) in 34 town and city centres across the East Midlands, found that the biggest change was on high streets, with 260 closures and 206 openings – a net reduction of -54 compared to -61 in 2015. East Midlands saw a net increase of six units across retail parks.

The highest net reduction (-13) was in Derby with 43 closures and 33 openings. Nottingham had a net decline of -10 and Market Harborough eight. Loughborough had the highest net increase of seven, with 17 openings and 10 closures, followed by Belper which had a net increase of four with six openings and two closures.

Tobacconists, estate agents and food outlets are among the retail chains growing at the fastest rate on East Midlands high streets during 2016, according to research conducted for PwC by the Local Data Company (LDC).

Health clubs, lounge bars and food outlets, including pizza takeaway and Italian restaurants, also thrived last year, as the region’s high streets continue to rebalance from shopping to leisure.

With a net increase of 10, tobacconists were the fastest growing retailer, and, with a net increase of six, there are now 184 estate agents in the region, reflecting the buoyant property market.

The data also reveals that fashion shops, including women’s clothes shops and department stores, have been amongst the hardest hit. This regional decline mirrors a national trend of fashion retailers and department stores being amongst the hardest hit due to closures of all 164 BHS stores and new consumer patterns (click & collect) and fast fashion trends, with online sales accounting for 40% of total sales.

The growth of online and various other career-related portals (e.g. LinkedIn) supporting recruitment, has had an impact on services such as high street recruitment and insurance agencies, which have both been hard hit. Both saw a net decline of -9 units.

Andy Lyon, partner and head of retail at PwC in the Midlands, said:

“The research clearly highlights the changing face of town centres – leisure and experience destinations continue to replace traditional high street stalwarts. With the East Midlands economy thriving, as the fastest growing economy outside of London and the South East, there is a growing focus on leisure outlets, filling the void left by clothing shops, department stores and banks.

“Fashion is migrating to online at a faster rate than ever, leading to closures on the high street. 2017 will be a crucial year for retailers; a combination of price inflation on goods and groceries will mean that brand loyalty will play a more significant role than ever.

“With prices on the up and less disposable income available to consumers, retailers will need to be versatile and savvy to increase footfall to their stores. Our Total Retail research shows that almost half (48%) of UK shoppers buy online because they find it more convenient than visiting a shop. In contrast, shoppers continue to place a lot of value on in-store experience, with the number one attribute being shop staff with deep knowledge of their product range.”

Photo courtesy of Experience Nottinghamshire