How many entrepreneur dreams have bit the dust on the unforgiving High Streets across the United Kingdom? Plenty, by the looks of it.
6,000 shops shut down.
Horrendous economic conditions, inflation and COVID have played their part in shutting down 6,000 shops, according to research by the British Retail Consortium. That is nearly as many shops as there are in London’s West End.
“The past five years saw Britain lose 6,000 retail outlets, with crippling business rates and the impact of COVID lockdowns a key part of decisions to close stores and think twice about new openings. The North and the Midlands continue to see the highest amount of empty storefronts,” says Helen Dickinson, the chief executive of the BRC who fears the situation will get worse next year.
A wet July hits sales growth.
Out on the High Streets the sales are still struggling in a disappointing summer. A rainy July has seen sales growth drop to an 11-month low.
The BRC said retail sales values rose by 1.5%, compared with July last year, less than half the 12-month average growth rate of 3.9% and down from this year’s peak of 5.2% from February. The data is not adjusted for inflation so July’s small rise in spending represented a fall in terms of sales volumes.
Summer sales drop.
Britain’s consumers have largely weathered the hit to their spending power from last year’s surge in inflation and the Bank of England steadily raising interest rates, but analysts expect the toll to mount in the coming months.
The BRC said clothing and footwear retailers, which normally get a boost in summer, saw sales drop, contributing to a 0.5% fall in overall non-food sales in the three months to July.
Broken business rates system.
As to the closure of shops across the UK, the BRC believes there needs to be a shift in government policy and a freeze on business rates.
“To inject more vibrancy into high streets and prevent further store closures, government should review the broken business rates system. Currently there is an additional £400 million going on retailers’ bills next April , which will put a brake on vital investment that our towns and cities so desperately need,” says Dickinson.
“Freeze rates bills next year.”
“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 unviable. Government should go one step further and freeze rates bills next year.”
This freeze is unlikely to happen meaning 2024 could be yet another cold year on the high street.
