Retail Industry Struggles with Closures and Online Competition
- New high street store openings at their lowest level since 2010
- Number of new stores fell by 10% from 4,534 in 2016 to 4,083 in 2017
- Average of 16 stores closed per day in 2017
- Beauty product stores, coffee shops, cafes and tearooms, ice cream parlours saw growth
- Booksellers and tobacconists also had a good year
- Fashion stores, convenience stores and shoe shops saw the largest number of closures
- Net loss of 1,772 stores from Britain’s town centres in 2017
- Wage growth failed to keep up with inflation
- Online shopping impacting retailers
- Retailers reimagining the future
New research by Local Data Company (LDC) for PwC reveals that high street store openings in the UK have reached their lowest level since 2010, with a decrease of 10% from 4,534 in 2016 to 4,083 in 2017. The study analyzed 500 town centers and found an average of 16 stores closed daily, totaling 5,855 closures for the year. Beauty product stores, coffee shops, cafes, ice cream parlours, and tearooms experienced growth, while booksellers and tobacconists also had a successful year. Fashion stores, convenience stores, and shoe shops faced the most closures. This marks the second consecutive year of increased closures, resulting in a net loss of 1,772 stores from Britain’s town centers. Lisa Hooker, PwC’s consumer markets leader, stated, ‘2017 was tough for the British retail industry, particularly the second half of the year, with volatility across sectors due to inflation outpacing wage growth and online shopping impacting various industries like fashion, banks, and travel agents. Retailers are adapting to these challenges by reimagining their future.’
Factuality Level: 8
Factuality Justification: The article provides accurate information from a reputable source (PwC) and presents data on store openings and closures in the UK high street. It also includes expert commentary on the state of the retail industry. However, it could be improved by providing more context or analysis on the factors contributing to these trends.
Noise Level: 3
Noise Justification: The article provides relevant information about the decline in new store openings and closures on UK high streets, as well as specific examples of which sectors were affected positively or negatively. It also includes expert commentary on the reasons behind these trends. However, it could benefit from more detailed analysis or discussion of potential solutions or future implications for the industry.
Financial Relevance: Yes
Financial Markets Impacted: Retail industry, fashion stores, convenience stores, shoe shops, banks, travel agents, estate agents
Financial Rating Justification: The article discusses changes in the retail industry and its impact on various types of stores, which can affect financial markets as these companies are publicly traded and their performance influences stock prices.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: No extreme event mentioned in the article.
www.retailsector.co.uk