Net store closures in Scotland are at their lowest rate since 2016, according to new data from PwC and The Local Data Company (LDC).
Throughout last year, 888 stores north of the border closed their doors, while 669 shops were opened – resulting in a net loss of 219 stores managed by retailers with more than five outlets.
With the overall reduction at -1.4%, Scotland’s closure rate in 2022 is almost a quarter of the 2021 rate - when it was -4.7% - and is even less than the pre-pandemic rate of -3% (in 2019).
It is also below the Great Britain average of -1.7%.
With the spread of closures between British nations and regions at its lowest since the PwC and LDC research began in 2014, the proportionate rate of closures in Scotland for 2022 was among the lowest of the 11 regions examined.
Like the rest of Britain, retail parks in Scotland remain the most resilient outlet type, with a small increase in outlets (+0.1%).
The high street also showed greater resilience, with a -1.5% closure rate – compared with -2.6% for the whole of Britain.
Shopping centres experienced a higher rate of decline, with a closure rate of -2%.
Susannah Simpson, private business lead for PwC Scotland, said: “Despite the annual reduction of stores across our shopping centres and high streets continuing, our research shows real improvement in the rate of decline in Scotland – with our retail parks demonstrating a small amount of growth during 2022.
“It’s heartening to see confidence increasing among operators as they invest back into bricks and mortar after some years of uncertainty across the sector.
“Innovative openings including services and the use of technology really appeals to younger shoppers who have indicated they still enjoy shopping in-store.”
Eight of the 100 outlet categories tracked by the LDC saw net growth in double digits, half of which were leisure outlets.
Takeaway outlets continue to top the league table for new openings, with demand for both food on the go and home delivery continuing post pandemic. Many are franchise operators, as are the other success story: convenience stores. Other categories, such as DIY and pet stores are bouncing back, helped by pandemic trends.
Simpson commented: “It’s clear the way in which we use our high streets is changing, takeaway shops and convenience stores sit alongside DIY shops, restaurants, coffee shops and pet shops as the fastest growing categories within our analysis – and retail and leisure operators are responding positively to changing consumer demand.
“You only have to look around key cities like Glasgow, Edinburgh and Aberdeen to witness the growing café culture and abundance of eateries consumers wish to see.
“The proposed changes to Buchanan Street in Glasgow also signal a major change for what is currently a retail ‘hub’ in Scotland’s largest city.“
She continued: “The slightly slower recovery on the high street is a symptom of the need to coordinate fragmented landlord bases - and other interested parties - with the type of occupant.
“We would hope to see new openings encouraged thanks to stabilising rent levels and the upcoming changes to business rates in April – a welcome boost alongside the positive picture painted by retail parks, shopping centres and local entrepreneurs.”
The latest research also shows the lowest number of closures since the research began, marking a positive turn for retail post-pandemic.
The 2022 full-year results show a total of 11,530 chain outlets exited British high streets, shopping centres and retail parks – a significant drop from the 2021 figure of 17,219 outlets.
Equivalent to 32 closures per day, the figure remains significantly lower than the almost 50 per day that were closing during the pandemic.
New store openings have improved with 7,903 store openings - equivalent to 22 per day - this year, they are at the highest since 2019.
Lucy Stainton, commercial director for the LDC, added: “CVA and administration activity dropped in 2022, helping to drastically reduce the total number of closures across the market.
“Stronger than anticipated golden quarter performance provided a solid base from which to start 2023, as postal strikes drove shoppers back to bricks and mortar for their Christmas shopping.
“We expect 2023 to remain positive with funding available for stores to protect against high energy prices, the continuation of workers returning to offices and a revision to business rates providing much needed support to navigate current market headwinds.”
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