But Recovery Lags Pre-Pandemic Highs and Faces Cost of Living Concerns
- Store closures reach lowest rate in seven years with 6,146 closures (-30%) and 3,888 openings (+11%).
- East of England and West Midlands have the lowest spread of closures at -1.4%, while North East and South East see 0.8%.
- London’s net closures improved from -3.3% in H1 2020 to -1.3% in H1 2022.
- Leisure categories, takeaways, amusement arcades, and DIY shops drive recovery.
- Rising cost of living remains a concern for consumer spending.
Store closures have reached the lowest rate in over seven years, with a total of 6,146 closures (-30%) and 3,888 openings (+11%) in H1 2022. The East of England and West Midlands experienced the lowest spread of closures at -1.4%, while the North East and South East saw 0.8%. London’s net closures improved from -3.3% in H1 2020 to -1.3% this year. Leisure categories, takeaways, amusement arcades, and DIY shops have driven recovery by taking advantage of post-pandemic demand and lower rents. However, the rising cost of living remains a significant concern for consumer spending.
Factuality Level: 8
Factuality Justification: The article provides accurate information about store closures and openings in H1 2022 compared to previous years, discusses regional differences, and mentions the impact of the pandemic on various categories such as leisure, takeaways, amusement arcades, and DIY shops. It also includes a balanced perspective from an industry expert, Lisa Hooker, who acknowledges both positive and negative aspects of the situation.
Noise Level: 3
Noise Justification: The article provides relevant information about store closures and openings in the first half of 2022 compared to previous years, as well as insights into specific categories that have seen growth or decline. It also includes a balanced perspective from an industry expert, but could benefit from more analysis on long-term trends or possibilities and potential solutions for retailers facing challenges.
Financial Relevance: Yes
Financial Markets Impacted: Retail operators and real estate markets
Financial Rating Justification: The article discusses store closures, openings, and net closures in different regions, which impacts retailers and real estate markets. It also mentions the impact of rising cost of living on consumer spending.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the article
www.retailsector.co.uk