Charity shops and bookies ‘dominating UK high streets’

24 Sep 13
Charity shops, cheque cashiers and bookmakers are replacing traditional high street shops across the UK, research by PricewaterhouseCoopers has found

By Mark Smulian | 24 September 2013

Charity shops, cheque cashiers and bookmakers are replacing traditional high street shops across the UK, research by PricewaterhouseCoopers has found.

Women’s clothing stores were being notably hard hit by intense competition, while video and photography shops suffered from the switch by consumers to digital media.

The rate of store closures slowed slightly from more than 20 a day in the first six months of 2012, to 18 per day in the first half of this year, research for PwC by the Local Data Company showed. 

This found that across 500 town centres, 3,366 shops closed this year compared to 3,157 openings, a net reduction of 209 but a slower rate of decline that the 953 net closures seen in the first half of 2012.

While some 400 traditional shops closed, there was a near tenfold increase in openings of food, beverage and entertainment outlets.

Charity shops, cheque cashing, bookmakers, convenience stores, hearing aid shops and coffee bars were among the categories opening the most branches during the first half of 2013.

PwC insolvency partner and retail specialist Mike Jervis said: ‘The shifts in multiple retailers’ store portfolios are a barometer for changes in our society and its habits. Closures in areas such as the photography and video sectors reflect the sea-change in how consumers are spending – the well-publicised insolvencies at Jessops and Blockbuster are stark proof of that. 

‘Women’s clothing store reductions reflect the intense competition in this sector, with so many fascias on our high streets.’

Jervis said the increased in cheque cashing outlets and pawnbrokers ‘reflects a society where a sizeable part of the population is forced to turn to these types of borrowing for basic needs’, while more convenience shops had opened as multiple grocers sought to increase their market share.

Banks, recruitment agencies, shoe shops, furniture shops and travel agents were also among categories hardest hit by closures in the first half of 2013. 

Local Data Company director Matthew Hopkinson said: ‘The good news is that the significant decline in chain retailer numbers in town centres in 2012 is slowing down. 

‘That said, closer examination of the data shows the significant ongoing decline of traditional shops with food, beverage and entertainment taking their place. The pressure from online competitors, supermarkets and “out of town” providers will only increase.’

The 2013 Local Shop Report, published earlier this month by the Association of Convenience Stores, showed this sector grew by 5% in the last year to 49,888 shops, with 73% of store owners being new investors.

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