High street store closures reach 20 a day

"2012 saw more retail chains go into insolvency than ever before. The failed chains generally shared two problems - too many stores and too little activity in the shops and online. If underperforming retailers are to avoid becoming part of these statistics for next year, their shopping baskets should contain an acute knowledge of their customers and their customers' needs."

Mike Jervis, insolvency partner and retail specialist

Our retail experts have commented on figures which show that, for the second consecutive year since 2011, multiple retailers - those running more than six shops - are closing more stores. In 2012, 20 stores a day closed on average - compared to 14 a day in 2011. Year-on-year, the overall reduction in the number of stores climbed more than tenfold from 174 closures in 2011 to 1,779 in 2012.

Other main findings are:

  • The Local Data Company confirmed that computer games and clothes retailers were the sectors most affected.
  • Pound shops, supermarkets and coffee shops bucked the trend and opened the most shops.

Store closure statistics

Table 1. Top risers and fallers by business type in 2012

Risers

Net change (Units)

Net Change (%)

Fallers

Net change (Units)

Cheque Cashing/Payday Loans

121

20.0%

Card & Poster Shops

-188

Pound shops

99

13.0%

Computer Games

-176

Pawnbrokers

89

13.2%

Women’s Clothes Shops

-175

Charity shops

87

2.7%

Recruitment Agencies

-154

Betting Shops

77

3.3%

General Clothing

-120

Supermarkets

62

3.6%

Health Foods & Products

-119

Coffee Shops

58

3.4%

Banks & Financial Institutions

-112

 

Source: Local Data Company