High street retailers call for help as closures soar

Retailers have called for “decisive action” from the government to support the UK’s battered high streets after new data showed the number of shops, pubs and restaurants lying empty has soared by more than 4,400 in the first six months of this year.

Closures increased by nearly 17% to 24,205 across 3,000 towns, cities, retail parks and shopping centres monitored by the Local Data Company. The number of new openings of shops, restaurants, pubs and other leisure destinations declined by 2.1% to 19,803 over the half year – leaving 4,402 more gaps on the high street. That total is more than double the number ever previously recorded over the first six months of a year since LDC began its research five years ago.

Pubs were among the hardest hit, with a 6.5% decline in numbers over the six-month period. Retailers experiencing the biggest losses were electrical goods stores, fashion shops and news agents. Estate agents also suffered heavy closures.

The data reflects a crisis on the high street that has cost tens of thousands of jobs. Major chains including House of Fraser, Evans Cycles, Maplin and Poundworld have collapsed into administration this year while many others, including New Look, Carpetright, Mothercare and Homebase have all been forced to seek legal agreements with their landlords to shut stores and slash their rent bills.

High profile restaurant groups including Gourmet Burger Kitchen and rival burger chain Byron as well as Jamie’s Italian, Carluccio’s, and the Prezzo Group have also been forced to close large numbers of outlets as a result of rising costs, slowing spending and a rapid change in consumer habits.

The switch to online shopping, combined with a slowdown in spending and rising costs from business rates and wages has battered the profit margins of many retailers. There is also a major shift underway in how consumers spend their leisure time – as consumers opt to spend more of their spare cash on holidays and experiences rather than in shopping malls, and dine and drink at home.

The number of shoppers on the high streets and in retail parks is in decline and the rapid increase in the number of empty shops has prompted fears about the future role of town centres and what can be done to make use of retail property that may never again be wanted by retail and leisure businesses.

The LDC report comes as data published yesterday shows the UK high street suffering its ninth negative month in a row for instore sales. Sales fell by 2% yearon-year in October to mark 13 months since in-store growth exceeded 1%, according to the BDO High Street Sales Tracker.

October should mark the start of the “golden quarter” for retailers, as shoppers start to gear up for Christmas. But Sophie Michael, head of retail and wholesale at BDO, said the second poor October in a row was a “real worry” for stores.