More than 8,700 chain stores closed in 2021, according to analysis | Retail business

More than 8,700 UK chain stores closed in the first half of 2021 as the combination of the coronavirus pandemic and the shift to online shopping continued to weigh on retail demand for bricks and mortar, a report showed. new analysis.

The number of chain store closings far exceeded the number of new openings, meaning the total number fell by 5,251, according to the Local Data Company, a research firm. Fashion stores were by far the most affected category.

Stores were already grappling with a wave of chain store closings before the pandemic, with tens of thousands of store jobs lost as spending migrated online.

The pandemic has accelerated that decline, although the latest data suggests the overall pace of closures may slow, in a more promising sign for the industry. Net closings in 2021 were lower than the 6,000 experienced in the first half of 2020, when the UK first imposed nationwide closures and 11,100 stores closed.

The number of new store openings in the first half of 2021, at 3,500, was the lowest since at least 2016, when the Local Data Company first performed the same analysis. The research, based on visits to 205,600 stores, only covered retailers with five or more outlets.

The data also showed the effects of the work-from-home economy, with the logic of recent years reversed as commuters stayed home and city centers remained empty. The number of downtown businesses fell 4.3% over the year, worse than suburban towns and villages, which fell 3% and 2.3% respectively. In London, the suburbs were doing better than the City and the West End, which had been favored before the pandemic.

The bulk of the closures took place on main streets, with 3,600 stores closed in total. Business parks suffered the fewest closures; they’re usually accessible by car and are often stuck in supermarkets, housewares, and DIY retailers, which have remained popular during the pandemic.

Lisa Hooker, head of consumer markets at accounting firm PwC, which commissioned the study, said government financial support – including the leave scheme that supported workers’ wages as well as relief from commercial tariffs paid by stores – had provided a “lifeline” to retail and prevented an even higher rate of closures.

“After an acceleration in store closings last year coupled with restrictions and last-minute Christmas level closures extending through 2021, we would have expected a higher number of store closures this year. “she said.

“However, operators are far from out of the woods and the next six months will be decisive for many chains, especially with the reestablishment of full commercial tariffs for all but the smallest operators, the end of assistance and the agreement for the moment to be concluded between many operators and landlords in arrears of rent.