Retail figures strong but UK high street in decline, says PwC
More high street shops closed during 2011 than opened, according to a report from PricewaterhouseCoopers and the Local Data Company (LDC).
More high street shops closed during 2011 than opened, according to a report from PricewaterhouseCoopers and the Local Data Company (LDC).
This is the first time since 2009 that the high street has seen more closures than openings and emphasises the difficulties faced by the UK retailing sector.
Over the whole year 5,268 shops were closed while the number of openings only reached 5,094.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The research, however, comes while the latest UK retail sales which, including fuel sales, showed a 0.9% rise between December and the end of January. Excluding fuel sales the figure was up 1.2% against expectations of a 0.3% decline.
The figures compiled by the Local Data Company show the most closures amongst bookshops, electrical and home furnishing stores.
Convenience stores, supermarkets and charity shops showed net openings over 2011.
"The rise in convenience stores is due to them being a growth platform for supermarkets needing to meet consumer demand for local shopping" said Mike Jervis, PwC insolvency partner and retail specialist.
"Electricals and bookshops have suffered as these products are now increasingly bought online but retailers in these sectors are typically carrying unnecessarily large property portfolios."
The decline of the high street at the expense of out-of-town sites has been a long term trend in UK retailing. Currently town centre shopping only accounts for 42.5% of total spend, compared to 49.4% in 2000.
Current vacancies in high street retail property are at 48,000, or 14.3% of available shops, says Matthew Hopkinson, the director of the Local Data Company.
BS
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Millions at risk of 'unnecessary' tax bill – how to shield your savingsMillions of Brits could be taxed on their savings interest this year as their savings interest exceeds the personal savings allowance. Are you at risk?
-
Savers will have to wait as long as 48 years to build a £1m cash ISA pot if allowance is cutChancellor Rachel Reeves is rumoured to be planning a cut to the cash ISA allowance in the Autumn Budget, making it harder for savers to build wealth. Will you still be able to build a £1 million cash ISA pot?
