A new analysis report has revealed that the number of stores that closed their business in 2022 remained highest compared to the previous five years and 2023 will also be facing similar challenges.
The Centre for Retail Research has revealed that 47 sites shut down shop for the last time every day last year. A total of 17,145 shops on high streets and in other locations closed in 2022. Whereas almost 50 per cent of the 11,449 shops were closed in 2021, during the COVID pandemic. Also, it came to light that 1,51,474 retail jobs across the UK were lost last year, including those from online retailers, which represents 43 per cent of the 105,727 jobs lost in the previous year. The report stated that 5509 shops were closed because the retailers failed to run the business, due to some form of insolvency, while a further 11,636 shops were shut as part of cost-cutting programmes by large retailers or independents who simply closed their business for good. The report further revealed that the number of store closures caused by the big chains, those with 10 or more outlets, saw a dip of 56 per cent because most of the poor performers had already closed their businesses in previous years.
The research revealed that a total of 11,090 shops were closed by independents in 2022, whereas large retailers closed 6,055 shops. The property adviser Altus Group estimated that retailers and landlords are required to pay nearly £1.1bn from April 1 over the next tax year to cover the business rates on empty sites that have not been used for three months.