UK high street shop closures triples in 2014
16 Mar 2015
Almost three times as many shops disappeared from the UK's high streets in 2014 as against the year before, new figures show.
Some of the more notable collapses included mobile phone retailer Phones4U, pawnbroker Albemarle & Bond and lingerie chain La Senza.
Last year 5,839 outlets shut down while the number of new store openings was down to 4,852, which meant a net loss of 987 outlets in 2014, according to PwC and the Local Data Company (LDC).
This worked to around 16 shops closures every day last year.
According to Mike Jervis, insolvency partner at PwC, regulation had blindsided money shops, the advance of technology had hammered some phone operators and the internet continued to dent the clothing sector.
He added, despite the benign economy, the net loss of shops had accelerated.
Over 400 mobile phone shops downed shutters during 2014, and around 362 Phones4U stores were shut by administrators.
The figures further revealed a 100-per cent year-on-year increase in the number of video library closures, around 68, with more and more people turning to online options such as Netflix.
The study of multiple retailers in 500 town centres across the UK revealed the changing profile of the sector, with some 765 more traditional shops, such as clothes and shoe shops, closing.
A net decline of 457 was seen in service retailers, like opticians, travel agents, hairdressers and recruitment agencies. Leisure stores, which include food, beverage and entertainment, continued to thrive, adding 233 stores.
Among those that added the most branches during 2014 were charity shops, coffee shops, tobacconists / E-cigarettes, pound shops and betting shops.
The outlook for UK consumer spending, which generated over two thirds of gross domestic product, had been improving.
Wages were in the process of recovery after growing by less than inflation for much of the period since the financial crisis, even as shop prices barely increased.
