Northern retail sector posts lowest closures since 2018

Store closures across Northern England have steadied to their lowest rate since 2018, as PwC UK has revealed the latest statistics for chain retail stores, leisure venues and service outlets opening and closing across Great Britain for 2024.

Across the North West, North East and Yorkshire and the Humber, there was a total of 823 net closures in 2024, close to 2022’s total of 865, and the lowest reading since 355 in 2018.

The North West had 956 openings compared with 1,311 closures (-1.5% net change %), the North East had 359 openings compared with 502 closures (-1.7 net change %) and Yorkshire and the Humber posted 857 openings against 1,182 closures (-1.8% net change %).

Across Yorkshire and the Humber, the North West and North East, high streets were the category with the worst net change percentage, averaging -2.9%. Conversely, retail parks showed modest growth, with a net change percentage of 1.3 in the North East, 1.1 in Yorkshire and –0.1 in the North West.

Compared with 2023, net change – openings minus closures – stabilised across all three regions in 2024, with the North East recording a rate of -143, compared with -215 in 2023. The North West had the largest improvement, with a 39% net change of -355, compared with -578 in 2023. Yorkshire and the Humber also saw its net change steady somewhat, from -456 in 2023 to -325 in 2024.

Across all regions, net change ranged from -1.4% in Wales (-131 outlets) to -2.3% in the East of England (-452 outlets). While there are fluctuations in closure rates between UK regions from year to year, over the past 10 years, all regions saw cumulative closures within two percentage points of the national average.

Claire Fox, markets and services lead for deals at PwC, said: “The shopping landscape in the North of England is experiencing notable shifts. High street locations are facing significant challenges, with declines across all three regions.

“Interestingly, retail parks in the North East and Yorkshire and the Humber are seeing modest growth, suggesting a shift in consumer preferences.

“These trends highlight the dynamic nature of the retail sector and the importance of adapting to changing consumer behaviours.”

She added: “Businesses looking to grow should consider leveraging digital technology to enhance their online presence, diversify their product or service offerings, and create more personalised shopping experiences.” 

The latest data shows that high streets are lagging behind.

Across Great Britain, retail parks saw a net increase of 0.4% of chain outlets, an acceleration of 0.1 percentage points compared with 2023.

They remain the only location type showing growth. In fact, over a 10-year period, there were only three per cent fewer retail park outlets in 2024 than there were in 2014.

By comparison, other locations have fared worse over the past decade, with 25% fewer shopping centre chain outlets and almost 30% fewer high street outlets than in 2014.

Notwithstanding the long term declining trend, both shopping centres and high streets saw fewer net closures in 2024 compared with 2023. Shopping centres’ net decline fell from -2.5% to -1.2%, while the decline in high street chain outlets fell from -3.3% to -2.4%.

The bi-annual report, using proprietary data from Green Street (formerly Local Data Company), tracks more than 200,000 chain outlets in around 3,500 locations to gain a picture of the changing landscape of retail chains with more than five stores across Great Britain.