Overall number of store openings declines in the West Midlands
FEWER store openings in the West Midlands in 2014 meant the overall number of shops on the region’s high streets fell last year, new figures have shown.
Data produced by PwC shows that the decline was due to retailers continuing their drastic overhaul in response to the advance of online sales and changing consumer demand.
According to PwC research compiled by the Local Data Company (LDC), 524 outlets closed in the West Midlands compared to 371 openings last year. This equates to a net reduction of 153 shops as fewer shops opened despite similar numbers closing year on year.
The net loss in the number of stores in the West Midlands increased from 76 closures in 2013, when 471 stores opened in the region and 547 stores closed.
The study of multiple retailers in 500 town centres across Great Britain found that in 2014, the rate of openings of multiple retailers (shops with more than five outlets) in the West Midlands decreased, with one store opening per day in 2014, compared to 1.3 in 2013.
West Midlands multiple openings and closures in 2014
| No of store closures 2014 | Number of store openings 2014 | Store openings by day 2014 | Store closures by day 2014 | Net change 2014 (units) | Net change 2013 (units) | |
| West Midlands | 524 (2013: 547) | 371 (2013: 471) | 1.02 (2013: 1.29) | 1.44 (2013: 1.50 | -153 | -76 |
| Birmingham | 87 | 75 | 0.21 | 0.24 | -12 | -24 |
| Bloxwich | 0 | 1 | 0.00 | 0.00 | 1 | 0 |
| Bromsgrove | 8 | 4 | 0.01 | 0.02 | -4 | 8 |
| Burton-upon-Trent | 15 | 9 | 0.02 | 0.04 | -6 | 5 |
| Cannock | 11 | 7 | 0.02 | 0.03 | -4 | 8 |
| Coventry | 30 | 19 | 0.05 | 0.08 | -11 | -8 |
| Dudley | 11 | 2 | 0.01 | 0.03 | -9 | -6 |
| Evesham | 15 | 5 | 0.01 | 0.04 | -10 | -3 |
| Halesowen | 12 | 2 | 0.01 | 0.03 | -10 | 4 |
| Harborme | 7 | 7 | 0.02 | 0.02 | 0 | -6 |
| Hereford | 23 | 14 | 0.04 | 0.06 | -9 | -1 |
| Kidderminster | 14 | 8 | 0.02 | 0.04 | -6 | -1 |
| Kings Heath | 7 | 6 | 0.02 | 0.02 | -1 | -4 |
| Leamington Spa | 18 | 15 | 0.04 | 0.05 | -3 | -2 |
| Lichfield | 10 | 9 | 0.02 | 0.03 | -1 | 0 |
| Newcastle-under-Lyme | 8 | 11 | 0.03 | 0.02 | 3 | -5 |
| Nuneaton | 18 | 7 | 0.02 | 0.05 | -11 | -8 |
| Redditch | 10 | 15 | 0.04 | 0.03 | 5 | -3 |
| Rugby | 14 | 9 | 0.02 | 0.04 | -5 | -2 |
| Shirley | 5 | 3 | 0.01 | 0.01 | -2 | 3 |
| Shrewsbury | 18 | 20 | 0.05 | 0.05 | 2 | 5 |
| Solihull | 20 | 18 | 0.05 | 0.05 | -2 | -2 |
| Stafford | 14 | 8 | 0.02 | 0.04 | -6 | -5 |
| Stoke-on-Trent | 28 | 12 | 0.03 | 0.08 | -16 | 2 |
| Stourbridge | 5 | 5 | 0.01 | 0.01 | 0 | -6 |
| Stratford-upon-Avon | 9 | 12 | 0.03 | 0.02 | 3 | -1 |
| Sutton Coldfield | 13 | 8 | 0.02 | 0.04 | -5 | 0 |
| Tamworth | 11 | 11 | 0.03 | 0.03 | 0 | -4 |
| Uttoxeter | 3 | 5 | 0.01 | 0.01 | 2 | -4 |
| Walsall | 21 | 12 | 0.03 | 0.06 | -9 | -5 |
| Wolverhampton | 35 | 14 | 0.04 | 0.10 | -21 | 0 |
| Worcester | 24 | 18 | 0.05 | 0.07 | -6 | -8 |
| Source: Local Data Company |
The analysis also highlights the changing profile of town centres across the West Midlands, with mobile phones shops, former bank branches, money services shops, fashion shops and estate agents all most likely to be pulling down their shutters in 2014.
The collapse of major retailers such as Staffordshire-based Phones 4u was a major contributing factor is this.
Charity shops, e-cigarettes outlets, jewellers, shoe shops, financial advisors, coffee shops and discount stores (single-price stores such as Poundland) were among those opening the most branches during 2014.
Rob Hunt, restructuring partner at PwC in the West Midlands, said: “This year’s numbers expose the harsh impact of ‘macro’ changes on the high street, especially in certain sub-sectors.
“Increasing regulation for money shops, the advance of technology for some phone operators and the continued shift to the internet in the clothing sector. Despite the benign economy, the net loss of shops has accelerated. The insolvencies of Phones4U, Albemarle & Bond, and La Senza, a diverse cross-section of the retail market, epitomise these factors.
“Despite the continuing problem of closures, new sub-sectors, such as discount shops and charity shops keep growing. The strength of the restaurant and fast-food sectors is also a boost for the high street.”
“We’re again seeing the continued effects of the digital revolution and consequent change in customer behaviour play out on the high street – these trends have been with us for some time and we should expect the rate of closures to continue,” added Lyon.
“As customers are embracing new digital and mobile technologies, traditional retail channels to market are being forced to integrate with online channels to respond to this change in behaviour. The impact of this is that many retailers are choosing to invest in their online offering, rather than their store portfolio.
“The future can be seen by watching the ‘digital natives’ at work and play – those who have grown up with online shopping, mobile phones and wide-spread broadband have a very different relationship with traditional high streets than the previous generations. Rather than try to recreate the past, the high street needs to evolve to be relevant to the future.”
Matthew Hopkinson, director of The Local Data Company, said: “This analysis shows the second most significant annual decline in chain retailers in our town centres – a net loss of 987 stores versus the all-time high of 2012 when 1,779 units pulled down the shutters for the last time. This is an increase of 266% compared to the net closure of 371 shops in 2013.
“Our town centres continue to evolve away from traditional shops and services to leisure – food & beverage and entertainment. This is reflected by American and British restaurants featuring in the top 10 risers along with the impact of click and collect services showing a 20% growth in 2014.
“Change will continue and the area to watch in 2015 is the battle of the convenience and food store sector as supermarkets, the discounters and pound shops fight it out.”
