Chain outlets are closing at their slowest rate since 2014, according to new research released by accountancy firm PwC.
New openings remain lower than pre-pandemic levels, but last year they showed signs of picking up and in 2022 net closures were at their lowest level in five years.
PwC’s report, which uses data collected by the Local Data Company, shows 11,530 chain outlets (operators with five of more outlets) exited high street, shopping centre and retail park stores in the UK last year, equivalent to 32 closures per day – during the pandemic this number was as high as 50 closures per day.
Last year, there were 7,903 store openings – the highest level since 2019 – which saw overall net closures of less than half the level witnessed in 2020 and 2021.
PwC said retail parks remained the most resilient location type, with shopping centres also recovering quicker than high street locations, largely driven by a faster return of footfall.
Takeaways drove the number of new chain outlet openings thanks to continued high demand for home delivery. DIY and pet retailers also saw new openings bounce back. Closures were driven by the banking sector, charity shops, fashion retailers and employment agencies.
With closures hitting the lowest level for eight years and footfall slowly returning, PwC said there was room for optimism.
“It’s safe to say that the pandemic retail, leisure and city centre shake-out is over, with all UK regions recovering consistently,” said the company. “The exit of many legacy operators has left some sectors in a much stronger position, and the reduction in online penetration has seen a return of footfall to physical locations.”
PwC said that with rental levels ‘normalised’ and changes to the business rates regime due to kick into force in April, this should encourage new openings across most locations
Will Thomas of KLM Real Estate said: “The view from the ‘coal face’ very much supports the report findings. Closure numbers over recent years were boosted by several large-scale failures – eg, Arcadia – and as these settle, and a semblance of stability [returns] following Covid and better than expected Christmas trading results, fresh enquiries from new and existing business are picking up and gathering momentum.”
