Across the UK, more than 17,000 shops closed in 2022 — the highest number for five years.
The Centre for Retail Research (CRR) reports that a total of 17,145 stores closed down on the UK’s high streets and in shopping centres and out-of-town retail parks. This is almost 50% more than the 11,459 stores that closed in 2021.
It means that every day last year, around 47 shops closed their doors for the last time.
However, only around a third of closures were due to insolvencies, with the rest due to cost cutting or “rationalisation” of the business.
“Rather than company failure, rationalisation now seems to be the main driver for closures as retailers continue to reduce their cost base at pace,” said CRR director Professor Joshua Bamfield.
Bamfield added that this trend was likely to continue in 2023, although a few “big hitters” could also fail.
Overall, more than 150,000 jobs were lost as a result of store closures last year, a 43% increase compared to the previous year.
At the height of the pandemic retailers were protected through government support and the furlough scheme, which helped to pay wages when shops could not open, BBC News noted.
Challenges faced by the retail sector last year included higher costs for energy and wages and soaring inflation which led to a drop in consumer spending.
