16 stores close a day as crisis grips High St

The crisis on the high Street saw 16 stores close every day last year as shopkeepers struggled in the face of rising costs and an onslaught from internet rivals.

In a sign of the growing strain on retailers, a report by Pricewaterhousecoopers revealed 5,855 shops closed in 2017, the most in four years.

The pain continued into 2018 with the industry suffering its worst start to the year since the financial crisis plunged Britain into recession.

The findings reflect ongoing turmoil on the high Street which has claimed Toys R Us and Maplin, leading to the loss of more than 5,000 jobs. Other troubled retailers include New Look, Carpetright and Mothercare. Zelf hussain, a restructuring partner at PwC, said: ‘We’ve seen some well-known names impacted as they face a perfect storm of issues: a fall in consumer confidence and reduced spending, alongside rising costs.’

In further evidence of the crisis, an average of just 11 stores opened each day last year, the lowest level in seven years.

Researchers looked at the top 500 town centres in the UK, and their findings paint a stark picture of the pressures facing retailers as more businesses are forced to close stores in the face of competition from online shopping.

estate agents, banks and travel agents were hit the hardest last year, accounting for more than a third of all closures as more consumers went online to book holidays and do their banking. Fashion retailers closed 713 shops while opening just 399. Shoe shops also struggled with 164 shutting and just 78 opening.

PwC said consumers were demanding more from their shopping experience than they used to, with a number of major retailers like John Lewis and Next recently launching personal styling services, barbers and restaurants in store.

Last week, however, shopping centre owner hammerson shrugged off woes as visitors to its sites, including the Bullring in Birmingham, increased 5pc over easter.

Lisa hooker, consumer markets leader at PwC, said retailers needed to recognise the changing needs of shoppers: ‘The winners, such as nail bars, coffee shops, bookstores and craft beer pubs, are all flourishing.’

She said they were meeting the needs of younger shoppers who wanted to pay for experiences as well as goods.

Lucy Stainton, a retail expert at The Local Data Company, said: ‘There is of course no doubting that we are experiencing a period of great change, and the question around the role of stores is still very much on the industry agenda.’