Retail Crisis: UK Loses 37 Shops Daily in 2024
Synopsis
The UK high street continues to face a challenging climate, with 2024 witnessing the closure of nearly 13,500 retail stores across the nation. This figure, representing a rise of 28% on 2023’s data, equates…
The UK high street continues to face a challenging climate, with 2024 witnessing the closure of nearly 13,500 retail stores across the nation. This figure, representing a rise of 28% on 2023’s data, equates to approximately 37 shops shutting their doors every day. The findings, shared by the Centre for Retail Research (CRR), highlight ongoing struggles for retailers, with further turbulence expected in 2025.
While the total closures in 2024 did not surpass the levels seen between 2019 and 2022, experts caution that the outlook remains bleak for businesses trying to survive on the high street.
Independent Retailers Hit Hard
Small businesses bore the brunt of the retail downturn in 2024. Independent retailers, typically operating between one and five stores, accounted for a staggering 84.1% of all closures, as shutdown rates soared by over 45%. This marks a stark increase from 2023, where independent businesses were responsible for 74.5% of closures.
These small-scale operators have faced significant challenges, ranging from surging costs to changing consumer habits. Many of them have been forced out of business due to insolvency or by opting to close some or all locations as part of cost rationalisation efforts. Out of the 13,479 shops that shut their doors in 2024, more than half – 7,537 – closed as a result of insolvency, while 5,942 were shuttered following cost-cutting or restructuring plans.
Major brands were not immune to the pressures, either. Household names like Homebase, the Body Shop, Lloyds Pharmacy, Carpetright, and Ted Baker all succumbed to financial challenges last year, contributing to the wave of closures.
A Grim Forecast for 2025
Professor Joshua Bamfield, Research Director at the CRR, warned that the difficulties facing UK retailers are far from over. He projected that store closures would rise again in 2025, increasing by the same factor as in 2024, with the tally potentially reaching 17,350. Of these, around 14,660 closures are forecasted to come from independent businesses.
Bamfield stated that while closures in 2024 did not hit the peaks observed in 2020 or 2022, they still underscore the hardships facing the UK retail sector. “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,” he shared.
Rising Costs Driving Store Closures
One of the most significant factors putting retailers under pressure in 2024 was increasing operating costs, with business rates being a primary culprit. The planned reduction in the business rates discount from 75% to 40%, due to come into effect in April 2025, signals even tougher trading conditions ahead.
The Altus Group, a commercial real estate firm, estimated that the average shop’s rates bill would nearly double, rising from £3,589 in 2024-25 to £8,613 for 2025-26. Alex Probyn, President of Altus Group, criticised the government’s approach, stating, "Despite Labour’s manifesto recognition of the undue burden business rates place on our high streets, that burden will be significantly increased."
Calls for Reform
Labour’s general election manifesto pledged to replace the business rates system in England with a fairer alternative, aiming to "level the playing field between the high street and online giants". The party argued that such reforms would incentivise investment, encourage the rejuvenation of empty properties, and support entrepreneurship.
A discussion paper published by the Treasury in October 2024 outlined how the government would deliver this pledge in the current parliament. However, many retailers remain sceptical and are concerned about the immediate effects of rising costs before any reform is implemented.
Losses Extend Beyond Shops
The figures on shop closures paint only part of the picture. Alongside the loss of retail spaces, the CRR revealed the toll on employment. Over the course of 2024, nearly 170,000 retail workers across the UK lost their jobs—a stark reminder of the wider economic and social impact of these closures.
The retail labour market has been particularly affected by the financial difficulties of large chains. Every collapse leaves thousands of employees facing uncertainty and puts further strain on the economy.
High Street Survival Techniques
While the outlook remains challenging, some retailers are exploring new strategies to stay afloat. Many are turning to e-commerce and merging in-store experiences with online channels to cater to modern consumer preferences. Others are focusing on community engagement, personalised customer service, and offering products that are unique to their businesses.
Government intervention, particularly around reforming business rates and providing more robust support for smaller businesses, will also be crucial in shaping the future of the UK high street.
Source
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