The retail sector faces significant challenges with a daily average of 38 store closures during 2024, based on PwC data.
- A total of 6,945 retail outlets have shuttered their doors so far this year, surpassing previous years’ closure rates.
- New store openings have increased modestly, yet they do not keep pace with the number of closures.
- Value and convenience retailers are experiencing some growth, showing resilience amidst the challenging environment.
- Constructive solutions from stakeholders are essential to revitalise struggling high streets.
New data from PwC highlights a concerning trend for the retail industry in 2024, with an average of 38 stores closing each day. This significant figure stems from a total of 6,945 outlets shutting down, marking an increase compared to the previous average of 36 closures per day.
Despite the increase in closures, there has been a modest rise in new store openings to 4,661 this year, which translates to approximately 25 new stores each day. However, this growth rate remains insufficient to counterbalance the closures, leading to a net loss of 12 stores daily across high streets, shopping centres, and other retail locations.
In contrast to this overarching decline, value retailers and convenience stores show a different trend. These sectors have experienced a growth rate exceeding one store per week, with 39 and 85 new outlets respectively, indicating consumer demand for affordability and convenience.
There is a notable shift in the fashion retail landscape, with fewer than 100 fashion store closures in the first half of 2024. This represents a sharp decrease from over 1,000 closures in the same period in 2021, suggesting a potential market stabilisation or adaptation within this segment.
Lisa Hooker from PwC emphasises the importance of strategic involvement from policy makers and communities to support and invest in beleaguered retail areas. She advocates for repurposing spaces to align with consumer preferences for convenience, variety, and engaging experiences, to sustain and invigorate the high street.
The retail sector requires collaborative efforts from various stakeholders to manage closures and foster growth effectively.
