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An average of 38 shops closed down each day in the first six months of the year, according to new research from PwC.
The latest data shows that a total of 6,945 shops belonging to multiples and chains exited Great Britain’s high streets, shopping centres and retail parks – a rise in closures when compared to 2023, when 36 shops closed each day.
Openings grew slightly however, up from 24 to 25 per day. The net decline has stayed around the 1% mark every six months, suggesting a slow but steady decline in physical outlets as consumers increasingly undertake more transactions online.
PwC’s data shows that online retail penetration has increased further in H1 2024 and returned to the long-run pre-pandemic growth trend. Non-food online retail penetration is at its highest since October 2021.
However, net closures remain relatively stable at between 11 and 12 outlets per day for the last three years.
Category-wise, grocery has been the most resilient category. PwC said the rise can be explained by the increase in convenience stores, with many large grocery chains opening smaller stores instead of larger, full-sized supermarkets, which were the third fastest growing outlet type this time last year.
There’s also been an acceleration in the number of openings of chain coffee shops and cafes, both capitalising on the move to out-of-town locations such as drive-throughs, on retail parks and inside supermarkets.
Fashion retail sales have been particularly hard hit by the unseasonal weather in the first part of the year, declining by 11 months in a row in volume terms.
Lisa Hooker, leader of industry for consumer markets, PwC UK, said: “It’s clear that online retail is here to stay, outpacing physical stores annually. As more brands invest in data and really understand their customer, new space increasingly seeks to meet customer trends for convenience, ease of access and fun, creating spaces that feel exciting for consumers to step into.
“While some consumer touch points, like grabbing a last minute present or a coffee can’t be replaced online, the high street will need to continue to evolve for a tech-savvy generation with new living, working and playing habits.”
