The pace of store closures in the UK will accelerate in 2022 as Covid-era support measures are withdrawn, with rationalization rather than insolvency the main reason for store closures, according to a study.
The Center for Retail Research found that more than 17,000 stores closed last year, the equivalent of 47 days, the highest number in five years. These figures are gross and do not take into account new store openings.
The CRR said 11,636 closures were due to rationalization programs by large or independent retailers only closing stores, while 5,509 were due to some insolvency proceedings.
Professor Joshua Bamfield, director of CRR, said rationalization appeared to be “the main driver of closures as retailers continue to reduce their cost base at a rapid pace”. He expects the trend to continue in 2023.
The CRR said store closures due to corporate collapses, such as Debenhams and Arcadia, are both due to close in 2021, down 56 per cent on last year. Major retail insolvencies in 2022 include convenience retailer McColl’s and lifestyle group Joules.
Read more about Britain’s retail woes.