Wednesday, July 6, 2022
BusinessNew study reveals store closures accelerating across Scotland

New study reveals store closures accelerating across Scotland

A NEW study has revealed that store closures are accelerating across Scotland with 1,400 shops closing their doors in the last year.

More than four shops a day disappeared from Scotland’s main retail locations in 2021, with shopping centres being hit the hardest.

The research from PwC and the Local Data Company suggests that the rate of store closures across Scotland increased as Government support during the pandemic was wound down.

The study suggest that the closure of larger chain stores has given smaller shops the opportunity to take advantage of reduced rent prices. (C) Rowan Brolly.

A total of 1,424 chain shops in Scotland closed in 2021, with 673 opening, giving a net loss of 751 retail stores.

The rate of store closure in Scotland was found to the the third fastest out of a total of 11 UK regions examined in the study.

The research found that the number of shops in Scotland has steadily declined in recent years with losses recorded every year since 2016.

However, following the recent closure of some larger fashion and department stores, the number of closures are expected to slow throughout 2022.

Jason Higgs, Head of Retail for PwC Scotland commented: “We continue to see an annual reduction of stores up and down our high streets and across our shopping centres.

“This year’s acceleration of net closures was expected given the ongoing impact of the pandemic and the fact government support for chain retailers has been phased out.

“The retail industry is going through a period of enormous flux and in the likes of Glasgow and Edinburgh there are already some radical plans emerging to repurpose city centres.

“We’re seeing everything from flats and hotels to adventure golf courses emerge from the chrysalises of boarded up shops and it is this entrepreneurial flair along with bold action from local authorities and landlords that will entice consumers back into their high streets.”

Related Stories