Pub, shop and cafe closures at 10-year high

BRITAIN lost 55,514 shops, cafes, pubs and other retail and leisure businesses last year, the highest number for over a decade, according to the Local Data Company.

The commercial property research group said the number of retail and leisure units that closed rose 14 per cent year-onyear, due to high interest rates, rising operation costs and inflation driving the cost of goods higher. The previous highest annual closure figure was 54,052, recorded in 2019.

LDC added that last year, the vacancy rate for retail and leisure properties rose 0.2 percentage points to 14 per cent, following two years of declines.

The driving factor for this was a 0.4 point rise in vacancies in the leisure sector, particularly pubs, which have faced rising staff, energy and food and drink costs.the retail vacancy rate was static at 15.3 per cent.

It said although the rise in the overall vacancy rate was marginal, this indicates that the post-pandemic recovery may have stalled. It added: “Vacancy rates remain 1.9 percentage points above pre-pandemic levels, and further recovery is likely to take some time.”

However, LDC found that the annual rate for retail and leisure openings increased last year from 45,329 to 47,744 units.

Retail parks were the only location to see a net increase in occupancy levels, up 0.4 per cent. Shopping centres saw a 1.3 per cent decline, as did high streets, while standalone units fell 1.4 per cent. LDC said shopping centres were under pressure due to competition from out-of-town retail parks and brands focusing on prime and high-footfall locations.

One group set to add to the list of store closures is Ted Baker. It confirmed the appointment of restructuring and insolvency specialist Teneo as administrator late on Friday.

Ted Baker has 86 stores and concessions in the UK and employs around 980.

Teneo is expected to make cuts to both, as it tries to stabilise the business and find a buyer.

US licensing group Authentic Brands bought Ted Baker in 2022 and sources blame the group’s impending collapse on Dutch retail outfit AARC. They say when Authentic appointed it to run the stores and website, AARC’S vowed investment into the business failed to materialise.

A source said Ted Baker had “traded badly in the fourth quarter but would have been OK,” if AARC had invested. As a result, Authentic terminated AARC’S management contract and failed to prevent Ted Baker sliding into administration.