Skip to content
Search
AI Powered
Latest Stories

Signs of recovery as gap between store openings and closures narrows

Signs of recovery as gap between store openings and closures narrows
iStock image
Getty Images/iStockphoto

The gap between store openings and closures has narrowed to its smallest since 2016, a new report has found, as retail and leisure market witnessed signs of recovery amidst the persistent economic challenges.

According to the Retail and Leisure Trends Analysis 2022 by the Local Data Company (LDC), net change in units (openings minus closures) across Britain was -3,365 units over 2022, a 57 per cent year-on-year decrease from the 2021 figure of -7,902 units.


However, there was also a 5 per cent year-on-year decrease in store openings, as economic uncertainty, supply chain issues and rising inflation impacted new store plans.

image png Mar 14 2023 09 32 49 5137 AM Number of openings and closures across GB, 2013 to 2022 (Source: Local Data Company)

The overall vacancy rate also experienced a notable boost, ending the year at 13.8 per cent. This represents a decline of 0.6 per cent on 2021, the greatest year-on-year decrease since LDC records began in 2013. Following a difficult few years since the onset of the pandemic, remaining retailers are largely more resilient than they have been in the recent past, the market research firm noted.

“As 2022 came to a close we were able to reflect on our first full year on the other side of a global pandemic. Happily as the year progressed, we were charting some of the most positive statistics we have seen since 2016, namely the largest decrease in vacancy rates in a given period and the fewest net closures,” Lucy Stainton, commercial director at the LDC, said.

“That’s not to say 2022 hasn’t been marred by some phenomenally tough economic headwinds which squeezed both businesses and consumers with unhelpful circularity.”

fy 2022 business type graph Historical net change in occupied units by business type across GB, 2013 to 2022 (Source: Local Data Company)

Following a large net increase of 2,157 units across 2021, the independent store sector did not perform as well over 2022, with a net increase of only 262. Independents have been particularly impacted by the energy crisis and the removal of some government support schemes.

Having been affected by a raft of CVAs and administrations in the previous few years, multiples fared much better in 2022, with net decline in units rising from -10,059 in 2021 to -3,627. This represents the best performance for the multiples sector since 2016.

“In particular, whilst overall market performance did improve, independent businesses have started to feel the pinch from the impact of the cost of living crisis and this is reflected in the slowdown in openings and increase in closures,” Stainton commented.

“Soaring energy costs, combined with lower levels of disposable income for consumers, have led to some independent businesses falling into trouble and closing their doors for good. Government packages designed to support small businesses recovery post-covid also came to an end, causing additional pressure.

“However, it’s important to acknowledge that openings are still strong – both across the independents and chains. This shows that despite a tough economic backdrop, local entrepreneurs are still active, and the larger chain retail and leisure operators have the infrastructure and agility to navigate these tests.”

More for you

A woman enters the Selfridges department store

A woman enters the Selfridges department store on December 13, 2024 in London, England

Photo by Leon Neal/Getty Images

Retail faces mixed fortunes in 2025 amid cost pressures, AI opportunities, and high street revival


The UK retail sector is bracing for a challenging but opportunity-filled 2025, according to Jacqui Baker, head of retail at RSM UK. While the industry grapples with rising costs and heightened crime, advancements in artificial intelligence and a revival of the high street offer potential pathways to growth, she said.

Keep ReadingShow less
unsafe soft drinks seized in Southend

Unsafe soft drinks seized in Southend

Photo: Southend-on-Sea City Council

1,100 unsafe soft drinks seized in Southend safety crackdown

Southend-on-Sea City Council officials have secured food condemnation orders from Chelmsford Magistrates Court, resulting in the seizure and destruction of 1,100 unauthorised soft drinks.

The condemned drinks, including Mountain Dew, 7-UP, Mirinda, and G Fuel energy drinks, were found during routine inspections of food businesses across Southend by the council’s environmental health officers.

Keep ReadingShow less
Charity Super.Mkt at Brent Cross Shopping centre in north London

A customer browses clothes inside Charity Super.Mkt at Brent Cross Shopping centre in north London on, December 17, 2024

Photo by JUSTIN TALLIS/AFP via Getty Images

Brits kindle Christmas spirit with second-hand gifts

Bursting with customers one afternoon the week before Christmas, a second-hand charity shop in London's Marylebone High Street looked even busier than the upscale retailers surrounding it.

One man grabbed two puzzle sets and a giant plush toy as a present for friends, another picked out a notebook for his wife.

Keep ReadingShow less
Nothing is more important than your Mental Elf

Nothing is more important than your Mental Elf

Lancashire Mind’s 11th Mental Elf fun run was its biggest and best yet – a sell-out event with more than 400 people running and walking in aid of the mental charity, plus dozens more volunteering to make the day a huge success.

The winter sun shone on Worden Park in Leyland as families gathered for either a 5K course, a 2K run, or a Challenge Yours’Elf distance which saw many people running 10K with the usual running gear replaced with jazzy elf leggings, tinsel and Christmas hats.

Keep ReadingShow less
A woman walks past a window display promoting an ongoing sale

A woman walks past a window display promoting an ongoing sale, on December 13, 2024 in London, England.

Photo by Leon Neal/Getty Images

Retail sales disappoint before Christmas

UK retail sales rose less than expected in the runup to Christmas, according to official data Friday that deals a fresh blow to government hopes of growing the economy.

Separate figures revealed a temporary reprieve for prime minister Keir Starmer, however, as public borrowing fell sharply in November.

Keep ReadingShow less