One in Five High Street Stores ‘Will Close by 2018’

The 62,000 store closures will put an estimated 316,000 people out of work, and in particularly deprived areas, such as Wales and the North West, closures are predicted to rise to three out of every five stores.

The main culprit is the rise of online shopping, and the Centre for Retail Research says the country needs a £320 million redevelopment programme to build new homes, leisure centres, nursery schools and offices where derelict shops are currently taking up space.

Websites already account for 12.7% of Britain’s retail spending, but this is expected to rise to 22% by 2018.

Professor Joshua Bamfield, founder of the Centre for Retail Research, said, “The total number of retail stores will fall by 22% over the next five years, from 281,930 to 220,000 in 2018. If no action is taken, store vacancy rates could almost double to 24%. Already this year, 16 major retailers have gone into administration operating 1,985 shops and employing 14,719 staff.

“High streets need to combine the enthusiasm generated by Mary Portas with realistic and well-managed plans. The March 2013 budget saw the Government promising to invest £130 billion to help people buy property. Our proposal would actually help create new accommodation.”

However, there is a silver lining for independent shops and fine food retailers. The closures are predicted to hit larger retailers and chains the most, as more and more people begin checking prices online before choosing a certain store to go to. Delis and farm shops offer something different to the major multiples, which still makes bricks-and-mortar premises appealing to consumers.

Professor Bamfield added, “Major retailers like Tesco, Wickes, ASDA and B&Q have announced dramatic reductions in opening large new stores (though convenience is still massively important) and all have plans to subdivide giant stores, leasing space to other retailers.”