6,000 shops vanish in last five years

  • Recruitment
a retail worker looking at a computer tablet
Peninsula Logo

Peninsula Group, HR and Health & Safety Experts

(Last updated )

The UK has lost around 6,000 high street stores in the last five years as financial pressures continue to boil and business rates rise.

Figures from the British Retail Consortium (BRC) found that ‘crippling’ business rates and ongoing economic pressures continue to hit businesses hard, causing many to abandon retail spaces.

In the second quarter, the overall vacancy rate stood at 13.9% across the UK, which was 0.1% worse than the first quarter, but better year on year.

More than 1,900 retailers went under in 2022-23, up from 1,243 in 2021-22, with the figures surpassing the pandemic when the enforced closure of high streets forced many to close their doors.

Shopping centre vacancies saw little change at 17.8%, the same level as Q1, but the high street saw an increase of 0.1% to 13.9%. For retail park vacancies, the total number fell to 8.1%, although there was a 0.6% improvement from Q1 2023.

Helen Dickinson, BRC chief executive, said: ‘The past five years saw Britain lose 6,000 retail outlets, with crippling business rates and the impact of the Covid-19 lockdowns a key part of decisions to close stores and think twice about new openings.

‘To inject more vibrancy into high streets and town centres, and prevent further store closures, government should review the broken business rates system. Currently, there’s an additional £400m going on retailers’ bills next April, which will put a brake on the vital investment that our towns and cities so desperately need.

‘The government announcement earlier in the week about making changes of use to vacant units easier is welcome but it’s important local councils have a cohesive plan, and don’t leave gap-toothed high streets that are no longer a customer destination and risk becoming inviable. Government should go one step further and freeze rates bills next year.’

Regionally, Greater London, the southeast and the east of England each had the lowest vacancy rates, with London improving over the last quarter due to new flagship stores in the city, alongside a rise in office workers and tourists.

The highest vacancy rates were in the northeast and the Midlands.

Lucy Stainton, commercial director at the Local Data Company (LDC), said: ‘Across all location types, vacancy has reached critical levels, highlighting an ever increasing need to redevelop units to breathe life back into retail destinations.

‘With the continuing trend in mind, we do not foresee any improvements to vacancy rates in future. However, given that the latest rises in vacancy have not been particularly significant, we anticipate that any increases in the near future will be gradual.’

For information on redundancy, visit BrAInbox today where you can find answers to questions like How much money counts towards redundancy pay calculations from April 2023?

HMRC pursues Uber for £386m VAT bill

Tax breaks for occupational health up for review

Liverpool investment zone secures £80m funding

VAT fraudster must repay £1.2m or face longer in jail

Related articles

  • A woman confidently poses - caption above her says 'Ask Kate'

    Blog

    Ask Kate: my employee’s unmotivated after their holiday. Help!

    This caller was worried about their employee struggling with the post-holiday blues. So, they asked Kate Palmer, Peninsula’s HR Advice and Consultancy Director, for expert advice...

    Kate PalmerHR Advice and Consultancy Director
    • Performance & Appraisals
  • man and woman shaking hands

    Blog

    The employer’s guide to onboarding a graduate

    One in four graduate employees quit in their first two months on the job, according to the Telegraph. To help improve the likelihood of your graduates succeeding and progressing in your company, here are some important tips…

    Kate PalmerHR Advice and Consultancy Director
    • Recruitment
  • ill person lying on sofa blowing nose

    Blog

    The five-step process for managing staff sickness

    ACAS recently updated its guidance around managing sickness absences at work. So, now is a good time to make sure you’re doing everything you can to help manage sickness in your workplace.

    Gavin Scarr HallDirector of Health and Safety
    • Leave and Absence
Back to resource hub

Try Brainbox for free today

When AI meets 40 years of Peninsula expertise... you get instant, expert answers to your HR and Health & Safety questions

Sign up to our newsletter

Get the latest news & tips that matter most to your business in our monthly newsletter.

International sites

© 2023 Peninsula Business Services Limited. Registered Office: The Peninsula, Victoria Place, Manchester, M4 4FB. Registered in England and Wales No: 1702759. Peninsula Business Services Limited is authorised and regulated by the Financial Conduct Authority for the sale of non-investment insurance contracts.

Cyber Essential Logo
BAFE SP205 Registration
ISO 27001 and 9001 accredited company.
The Sunday Times - Top Track 250.
Glassdoor 2018 Best Places To Work.