Troubles on high street show no sign of easing any time soon

The North West was one of the regions hardest hit by the slowdown in the retail sector – according to a new survey.

The number of stores closing increased by 25 per cent in the region as the troubles in the UK’s retail sector showed no signs of slowing down.

Firms affected by the problems gripping the sector have included Bargain Booze, Toys R Us, Maplins and New Look.

The report from PWC and the Local Data Company found the store closures are outstripping the number of new openings.

Analysis of the top 500 town centres in the UK covered 67,157 outlets run by retailers operating more than five outlets across the country.

The research found that in 2017, 340 shops opened and 515 closed across the North West, a 25 per cent increase in the number of closures compared to 2016.

This equates to a net decrease of 175 shops – a significant shift from 2016, where volumes were lower and saw 333 outlets opened and 410 closed with a net reduction of 77 shops.

Only two town centres in the North West saw a positive net change in 2017, they were Altrincham and Lytham St. Annes.

The North West towns with the highest net reduction in 2017 were; Manchester, Blackpool, Chester, Liverpool, Oldham, Stockport, Carlisle, Barrow-in-Furness and Burnley.

There was, however, some growth on the region’s high streets, with health clubs, satellite televisions equipment & services, beauty products, camping goods/outdoor wear, sports goods and coffee shops amongst those growing at the fastest rate in 2017.

The data also reveals that across multiple retailers in the 29 town centres analysed across the North West travel agents, fashion shops, bookmakers, estate agents and charity shops were been amongst the hardest hit in 2017.

Lisa Hooker, consumer markets leader at PwC, said: “2017 was tough for the British retail industry, particularly the second half of the year.
“We saw volatility from month to month, and across different sectors as wage growth failed to keep up with inflation – forcing many shoppers to think more carefully about their spending habits.

“On top of this, many retailers are increasingly feeling the impact of the acceleration of online shopping as consumers begin to feel more comfortable with the price transparency and reliability of delivery options offered by online players.

“Digital offerings are increasingly becoming make or break in areas like fashion, but also for banks, travel agents and estate agents – all of whom closed a significant number of high street stores last year.

“For these industries, store closures are less driven by the market environment and are instead part of much bigger structural changes happening, as customers increasingly expect to interact with their service providers online or via apps.

“We’ve already seen a tough start to 2018, but it’s important to remember the British high street still plays a vital role in society – and that there are elements of growth amongst the headline numbers of decline.

“The winners at the moment, such as nail bars, coffee shops, bookstores and craft beer pubs, are all flourishing because they serve the needs of emerging consumer segments, such as experience-seeking millennials and offer a differentiated physical proposition that online can’t compete with.”

In 2017, 5,855 outlets closed on the UK’s high streets in 2017, at a rate of 16 stores a day.

This is a slight increase on the 15 stores a day closing in 2016, when 5,430 outlets closed, making it the second consecutive year the number of closures have risen.

The number of new stores opening in 2017 fell to 4083, from 4534 in 2016.

The second half of 2017 saw substantially more closures and less openings than the first six months of the year, reflecting a tough trading environment including a slowdown in consumer spending, rising staff and business rates costs, as well as a slowdown in food and beverage growth as consumer confidence reached a four year low in December 2017.