Region’s retail store closures hit five year high

A total of 417 retail stores closed across Yorkshire & Humber’s high streets in 2018 as closures continued to outstrip the number of store openings as consumers responded to the changing retail climate and the continued economic uncertainty.

According to PwC research compiled by the Local Data Company (LDC) of the 66,463 outlets across Great Britain, run by retailers operating more than five outlets, the overall volume of activity (number of openings minus closures) fell from 11,695 in 2013 to 9,225 in 2018.

The analysis of the top 500 town centres in Great Britain found that in 2018, 191 shops opened and 417 closed across Yorkshire & Humber. This equates to a net decrease of 226 shops, which represents the largest net fall in the number of stores in a single year since 2013.

The towns most affected by the continuing decline of Yorkshire & Humber’s high streets were Leeds, Wakefield, Hull, Sheffield, Scunthorpe, Harrogate, York, Doncaster and Bradford. Only one town centre across the region saw any positive gains which was Huddersfield, followed by Grimsby and Hessle Road (Hull) who both saw no change in the number of stores.

The data also reveals that of those multiple retailers in the 25 town centres analysed across Yorkshire & Humber banks and other financial institutions, computer game outlets, discount stores, recruitment agencies, estate agents, fashion shops and public houses were been amongst the hardest hit in 2018. There was very little good news with limited growth on the region’s high streets, with gift shops, 4 star hotels, letting agents and wines/spirit/beer outlets seeing some growth in 2018.

Table 1: Yorkshire & Humber towns with the highest net reduction in 2018.

(Source: Local Data Company)

Joel Smith, PwC’s Yorkshire & North East retail leader, said: “2018 was another turbulent year for the regions retailers. Coupled with the growth in online and high occupancy costs impacted by business rates, these contributory factors collectively led to more store closures across Yorkshire & Humber’s high streets with the highest net fall in the number of stores seen since 2013”.

“Leeds and Wakefield were the worst affected locations with Leeds seeing a net fall of 40 (5.3%) stores compared to a net fall of just 7 in 2017 and Wakefield experiencing a net reduction of 25 (8.9%). These closures were most marked in categories affected by online – fashion and computer game stores, recruitment and estate agencies combined with an increasing consumer preference for in-home leisure (pubs). High street banks and discount stores were the hardest hit across the region experiencing the largest number of closures.

“There is still undoubtedly an important role for the high street to play, and it’s vital that if high street retailers hope to claw back market share, not only do they need to look for new ways of achieving growth and make smart changes to ensure they are not left behind, there is also a need for the government to reconsider how business rates impact retailers.”

The analysis also observed a slowdown in leisure, in particular restaurants and pubs, which posted a net loss of 506 outlets, reversing three years of consecutive growth since 2015. Market saturation, cost challenges, and a shift in consumer preferences towards in-home leisure have exacerbated the impact on the sector, not only leading to closures but also discouraging new openings.

Looking at the first quarter of 2019, LDC data finds that closure rates remain high as 1,358 outlets alongside 849 openings. This is a direct consequence of CVA’s, store downsizing and administrations announced in 2018 feeding through across GB.