Average of 38 Shops Close Daily in H1 2024
- Average of 38 shops closed per day in H1 2024
- 6,945 shops belonging to multiples and chains exited high streets, shopping centres, and retail parks
- Online retail penetration at highest since October 2021
- Grocery category most resilient
- Convenience stores and chain coffee shops accelerate openings
- Fashion retail sales decline due to unseasonal weather
- Net closures stable between 11-12 outlets per day for three years
New research from PwC reveals that an average of 38 shops closed daily during the first half of 2024, with a total of 6,945 multiples and chain stores exiting Great Britain’s high streets, shopping centres, and retail parks. This marks an increase compared to 2023 when 36 shops closed each day. Although openings grew slightly from 24 to 25 per day, the net decline remains steady at around 1%. Online retail penetration has increased and returned to pre-pandemic growth trends. Non-food online retail is at its highest since October 2021. Grocery stores have been the most resilient category. PwC attributes the rise to convenience stores and chain coffee shops, which are opening in drive-throughs, out-of-town locations, and supermarkets. Fashion retail sales declined due to unseasonal weather, dropping for 11 consecutive months. Lisa Hooker, PwC UK’s consumer markets leader, states that physical stores must evolve to cater to tech-savvy consumers.
Factuality Level: 8
Factuality Justification: The article provides accurate information about the decline in physical retail outlets and increase in online shopping, citing specific numbers and trends from PwC’s research. It also discusses the resilience of certain categories like grocery and the growth of convenience stores and coffee shops. However, it contains some opinion from Lisa Hooker which may not be universally accepted truth.
Noise Level: 3
Noise Justification: The article provides relevant information about the decline in physical retail outlets and the rise of online shopping, but it could benefit from more detailed analysis and exploration of the underlying causes and potential solutions for struggling high street businesses.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the decline in physical retail outlets and increase in online shopping, which can impact companies in the retail sector.
Financial Rating Justification: It mentions the closure of shops and changes in consumer behavior towards online shopping, which can affect the financial performance of retail companies and their stocks.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
www.retailsector.co.uk