Almost three new stores open in the North West each day but four are closing

*1,618 stores closed across the North West in 2023, but 1,040 opened their doors

*Closures have remained steady since 2015, with a net change of -11% in the years 2015 to 2023

*Across the UK, 39 stores closed each day with 25 new stores opening – making a -14 net figure for each day of 2023 The figures are largely impacted by shifts in services such as betting shops as well as high profile administrations

PwC has released the latest figures for store openings and closures across Great Britain, and the data shows a -2.4% net change in the number of outlets in the North West.

1,618 stores have closed in the region, equating to four a day, however 1,040 have opened, adding almost three new stores across the North West every day. 

The bi-annual research is created in association with the Local Data Company and tracks over 200,000 outlets in over 3,500 locations to gain a picture of the changing landscape of high streets, retail parks, shopping centres and stand alone outlets.

Despite the difficulties faced by the retail sector during Covid, closures have remained steady over the past nine years, with a -11% net change in the number of stores from 2015 to 2019 and a -11.1% difference in the years 2019 to 2023. 

The good news for the North West, and the rest of the UK, is that retail parks have seen a 0.3% net increase – the only location type to grow, if only slightly. Given the North West is home to a number of retail parks, this will be a small silver lining to the sector. 

Joel Smith, PwC partner and consumer markets lead for the North, said:“Despite the number of closures remaining higher than the numbers of openings, it’s promising to see that the trend in net change continues to be steady in the North West. Our data tells us that the acceleration in store closures across the country is largely due to one-off administrations.“It’s also interesting to see that store openings are being driven by hospitality – mainly cafes, coffee shops and takeaways – it shows that the sector is starting to really bounce back after the pandemic. For sectors like these, the growth of AI can be used to guide businesses and increase efficiency. Our Frictionless Futures installation, which uses immersive AI to provide customer insights, sustainability data and supply chain visibility, shows that when businesses leverage data, they’re better prepared for sustainable growth.”

The national pictureThe latest research finds that the country has witnessed an increase in both openings and closures in 2023 compared with the previous year. The acceleration in store closures can primarily be attributed to one-off large-scale restructuring in parts of retail and hospitality.

There were a total of 14,081 store closures in 2023, averaging at 39 closures per day. The figure is higher than 2022’s total of 11,530, but lower than every year between 2017 and 2021, and in line with the 2016 figure (14,439).On a positive note, 9,138 new stores opened across Great Britain in 2023 – the highest figure since 2019, illustrating the continued importance of physical sites, with successful operators taking advantage of vacant space to expand their footprints.

This averages at 25 new stores opening each day across England, Scotland and Wales combined.Despite the overall decline, there has been a notable rebound in the hospitality sector, leading to a surge in new openings to meet consumer demand post-pandemic.

Indeed, 5 of the top 7 categories of new openings in 2023 were in this sector. Takeaways (+151), food-to-go (+131), cafes (+104), coffee shops (+74) and restaurants (+21) all flourished in 2023.

This resurgence in hospitality comes as a welcome relief after the pandemic-induced closures of chains in some of these categories, and contrasts with the well-publicised challenges faced by some independent operators in the face of rising energy and other costs.Interestingly, PwC’s own analysis highlights that the decline in physical outlets mirrors the proportion of consumers choosing to shop online for non-grocery items.

In 2015, the figure accounted for 79.4% of online purchases, compared to the 2023 figures of 59%. Lisa Hooker, Leader of Industry for Consumer Markets, points to the opportunities that the new landscape presents for those who want to maximise their profits in 2024:“A combination of the lagged impact of the pandemic together with inflation across the cost base has seen an acceleration in chain stores exiting the market in 2023 at 14 stores a day and some disappointing results across the independents sector. Whilst we believe the step-up in net closures reflects some more one-off failures and will improve this year, it does show the impact of the continuing trend of wanting to shop and consume services seamlessly across different channels with longer-term growth in spending online mirroring the annual net closures in physical sites. There are some bright spots in terms of net openings of leisure operators and on retail parks and elsewhere out-of-town, reflecting our desire for experiences over ‘stuff’, as well as for convenience.Overall this does suggest a continued need for retailers, landlords and the local government to work together to understand why consumers prefer retail parks and how they can revitalise and reposition high streets to meet future consumer needs; and also for our industry to embrace the latest technology and use of data to win the battle for share of wallet and stomach.”

The retail industry continues to adapt and evolve in response to changing consumer behaviours and market dynamics. While closures are expected to persist, the sector remains resilient, with opportunities for growth and innovation.