More than 13,000 high street shops closed in 2024
Experts have warned there is ‘worse set to come’ in 2025 because of Budget cost hikes.
More than 13,000 high street stores were shuttered for good last year as experts warned there is “worse set to come” in 2025 because of Budget cost hikes.
New figures compiled by the Centre for Retail Research showed that UK retail store closures jumped by more than a quarter on the previous year.
It also predicted that even more will shut this year as national insurance contribution increases and higher wages take their toll on local stores.
The centre’s latest analysis found that 13,479 stores, the equivalent of 37 each day, shut their doors for good over the calendar year.
This represents a 28% increase on the levels seen in 2023.
The provisional data showed that the vast majority of closures were small independent retailers, which have seen Covid-era financial support cut back.
It found that 11,341 independent stores were shut during the year, a 45.5% jump against the previous year.
Meanwhile, 2,138 stores were shut by larger chains over the year.
The data also showed that more than half of all stores closed, 7,537 in total, were closed through retailers undergoing some form of insolvency proceedings.
Major chains including Ted Baker, Homebase and Carpetright shut stores after entering insolvency during the year.
A further 5,942 shops were closed through “rationalisation” as part of cost cutting programmes. Retailers including Boots and Shoe Zone cut their store numbers during the year.
Professor Joshua Bamfield, director of the Centre for Retail Research, said: “Whilst the results for 2024 show that although the outcomes for store closures overall were not as poor as in either 2020 or 2022, they are still disconcerting, with worse set to come in 2025.”
The Centre for Retail Research has said they expect store closures to rise to about 17,350 during 2025 with about 14,660 coming from independent retailers.
This is expected to be linked by a rise in national insurance contributions and the increase in the national minimum wage, which were announced in the October Budget and will be take effect in April.
Small retailers will also face a significant impact from changes to the current discount to business rates taxes for firms in the sector.
Commercial real estate firm Altus Group said the cut in the business rates discount from 75% to 40% in April announced at the 2024 autumn budget, will see the average shop’s rates bill spiral from £3,589 to £8,613 for 2025/26.
Alex Probyn, president of property tax at Altus, said it was “foolhardy” to scale back the targeted relief after a tough year for the sector.
He added: “Despite Labour’s manifesto recognition of the undue burden business rates place on our high streets, that burden will be significantly increased.”
There was some positive news on Thursday when the Co-op announced plans to open 75 new stores across the UK in 2025.
