// Report reveals that store closures at are at a five-year low due to post-pandemic demand
// A net total of 12 stores closed each day in the first half of 2022 – the lowest number since 2017
A new report has shown that UK store closures have fallen to their lowest level in five years, driven by the release of pent-up demand post-pandemic.
The new data revealed that in the first half of 2022, the net number of physical store closures (closings minus openings) was 12 per day compared to online stores.
That figure is the lowest since 2017 and 30% lower than the first half of 2021, according to the latest store openings and closures report from accountancy firm PwC.
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PwC UK Industry Leader for Consumer Markets Lisa Hooker said the figure gave “some reason for optimism” but positivity came with “significant concerns” over the rising cost of living and the impact on consumer spending.
She said: “While the outlook is better than it was during the height of the pandemic, it’s worth noting that the numbers still show a decline, with our net numbers equating to 12 closures a day in the first half of this year.
“Added to that, retail footfall remains 10-15% below pre-pandemic levels and openings lack momentum, particularly outside leisure.
“With soaring prices for food, petrol and utility bills, inflation at a 40-year high and the Bank of England warning the UK will fall into a prolonged recession at the end of this year, this will impact everyone, and is only expected to deepen.”
While opening rates have yet to return to pre-pandemic levels, leisure businesses such as takeout, restaurants, playgrounds and DIY businesses are leading the recovery.
The report stated that the rise in DIY stores was mainly due to home improvement trends formed during lockdown as people were forced to stay inside.
Outside the leisure sector, however, closure rates are generally higher – fashion retailers had 128 net closures, however, this number was significantly lower than in previous years, with 1,063 fashion retailers closing in the first half of last year.
