Store closures at lowest rate since 2018
Net store closures in the Midlands are at their lowest rate since 2018, according to new data from PwC and the Local Data Company.
The twice yearly research tracks more than 200,000 outlets in over 3,500 locations to gain a picture of the changing landscape of high streets, retail parks, shopping centres and stand alone outlets.
The region saw a net fall of -2.3.% in 2022, improving from -5.4% in 2021, with 1,024 shutting shop in the region, whilst 596 new stores opened in the same period, creating a net closure rate of 428. The rate of closures has improved from 2021 when there were 641 openings and 1,676 closures and a net change of 1,035.
The West Midlands was the part of the country most impacted by store closures in 2022, following Greater London and with Yorkshire and Humber coming in third. In contrast, the East Midlands saw a net fall of -1.4%, the third lowest in the country.
The West Midlands saw some parts of the high street thriving with takeaways, convenience stores, DIY and pet stores bouncing back, helped by pandemic trends.
Retail parks across GB remain the most resilient outlet type with a small -0.3% closure rate with shopping centres (-1.6%) also recovering at a promising rate. High Streets were slightly lower at -2.6% but all outlet types saw a significant improvement in their net closure rates.
Sarah Phillips, PwC partner and consumer markets leader for the Midlands, said: “In the last few years, the region has seen some major retailers exit the high street. However, it’s not all doom and gloom as we’re seeing some green shoots appear, as the rate of store openings has doubled in line with store closures.
“It’s unfortunate that business failures are part of a working economy, due to factors like business model shifts, changes in technology and consumer habits. We’ve been through a long period of generally lower levels of closures, predominantly due to Government support and low interest rates. However, history shows us that in challenging times, we also see an increase in innovation and opportunities for new stores and hospitality venues to thrive, such as how restaurants pivoted during the pandemic to meal-kits and at home deliveries.
“Furthermore, we are seeing innovative store openings as retailers seek to provide experiences to consumers and better utilise space, mixing fashion with lifestyle, beauty and hospitality offerings whilst using the latest technology to entice younger shoppers. For example, the recent plans unveiled for the ex-John Lewis store in Grand Central include a restaurant, gym, food market, rooftop garden and co-working spaces, modernising away from a traditional department store.
“There are challenges ahead with a potential recession and the cost of living crisis continuing, however we have seen how quickly the tide can change and there is positive growth for retail across GB, as more people return to work and offices, boosting the high street.”
