The Courier & Advertiser (Fife Edition)
High streets suffer as shop closures rise
ATTRITION: Figures show one Scottish shop shut its doors for the last time every single day in 2016
One shop closed every day last year as Scotland’s high streets took a battering.
Banks, fashion outlets and charity shops were hardest hit as 366 stores closed in Scotland in 2016, according to PwC research compiled by the Local Data Company.
The impact was partially offset by 254 new store openings in the period. The net change of a 3.44% drop is almost double the British average of a 1.32% fall.
All areas across Scotland surveyed recorded an overall decrease in shops, with Leith having the highest rate of closures with a 10.53% drop, followed by Ayr’s 8.3% fall.
Dundee saw 32 closures in the year and 23 fresh starts, while Perth lost 21 outlets and gained seven.
The administration of McEwens of Perth, the city’s independent retailing icon, was one of the most high-profile failures of the year.
Falkirk, which traditionally has more store openings than closures, was the most resilient with a 0.78% drop.
Fashion stores had the largest number of closures at 32, while 15 banks, 13 charity shops and 12 mobile phone stores also shut.
Fast food outlets were among the most popular new stores with 14 openings, followed by 10 convenience shops, 10 tobacconists and seven new TV equipment servicing firms.
Across Britain, the fastest-growing retailers were in leisure, hearing aids, tobacconists and Marks & Spencer food outlets.
Mark Addley, deals director at PwC Scotland, said: “The average of around one closure per day has been the Scottish average for most years since 2012 – but that will be of little comfort to people who have lost their jobs and livelihoods because of this.
“Overall, we are seeing far fewer closures due to outright insolvencies, but more due to the lower key restructuring of store portfolios.
“Where there is some good news is that Scots are also leading the way in openings and we shouldn’t lose sight of that.
“In this era of mobile banking, internet shopping and less people going to high streets, there will be change.
“What we have to see is companies adapting to that.
“And while those in retail parks may feel more secure, even there, caution has to be exercised as we are seeing companies that previously had two or more outlets in larger parks consolidating into one unit.
“This has particularly impacted on mobile phone stores.
“Looking ahead, I doubt the figures are going to improve by the end of 2017 for areas like banking as we’ve seen a number of companies announce branch closures of late, but other areas may pick up depending on the levels of tourism Scotland and Great Britain sees over the summer.”
The average of around one closure per day has been the Scottish average for most years since 2012 – but that will be of little comfort to people who have lost their jobs and livelihoods. MARK ADDLEY