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Decline in number of stores slows
by 55 North
BUSINESS INTELLIGENCE: PWC / LOCAL DATA COMPANY / BRC-KPMG
Decline in number of stores slows
Research shows the number of closures is falling faster than the number of openings.
Almost 3,500 stores opened in the first six month of 2021, compared to 8,739 closures, new data shows.
The research by PWC and The Local Data Company reveals that the number of closures is falling faster than the number of openings. As a result, the overall net closure rate is 750 lower than it was at the same point last year.
City centres (-4.3%) are faring worse than commuter towns (-3%) and villages (-2.3%), the research shows. Footfall in cities is yet to recover to pre-pandemic levels, as more people work from home, and in the longer term move towards a hybrid working model.
In addition, the research shows that takeaway chains have been buoyed by a rise in delivery, as well as walk-in demand.
Lisa Hooker, Consumer Markets Lead at PWC, said: “Consumers still want a physical shopping experience and a number of chain stores and restaurants are opening. There is opportunity for operators who can be nimble, taking advantage of the current situation to either open new stores or to move stores to better locations.”
Retail sales show signs of slowing down
Retail sales increased by 3.0% in August, compared to a growth of 3.9% in the same month last year, new figures reveal.
The BRC-KPMG Retail Sales Monitor for August also shows that over the three months to August, food sales increased 2.9% on a total basis and increased 1.9% on a like-for-like basis. This is below the 12-month total average growth of 5.4%.
Don Williams, Retail Partner at KPMG, commented: “Retailers will be pinning their hopes on a more predictable normal, with white collar workers returning to city centres in greater numbers from this month and a buoyant Christmas fuelled by some of the savings that consumers have made over the last 18 months of lockdown and restricted spending.
“Nonetheless, successful retailers will have to work very hard to ensure the right availability of the right product to satisfy the requirements of an ever more demanding customer.”
