Fewer shops on high streets

FEWER store openings in the North West in 2014 meant the overall number of shops on the region’s high streets fell last year.

According to PwC research compiled by the Local Data Company (LDC), 410 outlets opened in the North West countered by 542 closures. This equates to a net reduction of 132 shops, double the net change in 2013 when there was a reduction of 65 shops. And the third highest net change of the UK regions (See table 1).

This is despite the rate of closures of multiple retailers (shops with more than five outlets) in the North West stalling to around 10 a week in 2014, up slightly from nine a week in 2013.

The study of 500 town centres across Great Britain found that within the region, Manchester saw a net loss of ten stores, as 70 new stores opened but 80 closed throughout the year. Areas that bucked the trend were Lancaster, Accrington and Hale, who all saw small net increases.

The analysis highlights the changing profile of town centres across the North West, with mobile phones shops, building societies, women clothing shops and pawnbrokers all the most likely to be pulling down their shutters, (see table 2).

David Kelly, advisory partner at PwC in the North West, said: “The North West high street continues its drastic overhaul in response to the advance of online sales and changing consumer demand, and this year’s numbers expose the harsh impact of ‘macro’ changes on the high street, especially in certain sub-sectors.

“Regulation has blindsided the money shops, the advance of technology has hammered some phone operators and the internet continues to dent the clothing sector. Despite the benign economy, the net loss of shops has accelerated.

“The insolvencies of Phones4U, Blockbuster, 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 fillip for the high street.”

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