East Midlands shop closures at five-year high

High streets across the East Midlands have seen the largest fall in the number of shops in over the last five years in 2018, according to new figures.

Retail has suffered across the region, with a net loss of -193 stores in 2018 as only 243 shops opened, compared to 436 closures (2017 net loss: 128 stores), according to PwC research compiled by the Local Data Company (LDC).

The net loss of shops on high streets, retail parks and shopping centres was at the highest for five years at -193, growing from; -147 in 2014, -65 in 2015, -64 in 2016 and -128 in 2017.

The analysis tracked 4,666 outlets in the East Midlands operated by multiple retailers in 34 town centres across the region.

Nottingham saw the highest net loss in the region with 39 stores (23 openings and 62 closures), followed by Derby which saw a net loss of 31 stores (37 openings and 68 closures). Leicester saw a net loss of seven stores, with 34 openings and 41 closures. Beeston and East Retford were the only areas to see a net growth of two and one stores respectively.

The figures show the East Midlands saw some parts of the high street thriving, with camping goods and outdoor wear shops, mobility services, bakers and ice cream parlors all opening a number of new premises across the region. Whereas there was a fall in the number of discount stores, banks and financial institutions, men’s and women’s clothing stores, as well as pubs and computer game stores, reflecting the rising customer demand for online and apps, and in-home leisure.

(Source: Local Data Company)

Andy Lyon, retail and consumer markets leader for PwC in the Midlands, said: “It’s clear that 2018 was a turbulent year for retailers. Coupled with the growth in online commerce and high occupancy costs impacted by business rates, retailers are facing some of the biggest challenges to hit the high street as we see closures hit record levels.

“In the East Midlands it’s clear that Nottingham’s retail activity is being impacted by the £86m redevelopment of intu Broadmarsh to regenerate the shopping centre. Whilst we have seen a number of closures in the existing shopping centre, as we near the completion in 2021 hopefully we will see it fast become a leading destination of choice for retailers and shoppers.

“Leicester has fared well both regionally and nationally with a net loss of just seven shops. The city continues to be ahead of the curve as a cultural destination and boasting Highcross as a great shopping destination, coupled with significant investment in commercial and leisure space in the city centre, which is helping drive footfall to the high street.”