Shop closures soared by over a quarter last year, with 13,479 shutting their doors and small independents being the hardest hit, new research reveals. Retail experts are warning that “worse is set to come”, with predictions indicating that the number of shops closing will rise by nearly a third this year.
The Centre for Retail Research (CRR) anticipates 17,350 stores will shut in the next 12 months, averaging almost 48 per day. Joshua Bamfield, the centre’s director, said while the closure numbers were not as severe as those in 2020 and 2022, “they are still disconcerting”.
Shop closures drain the vitality from many town centres, resulting in ghost towns characterised by rows of boarded-up shops. Carpetright, which had 273 stores, was among those that collapsed last year, although 54 of its shops were taken over by rival Tapi Carpets & Floors.
The Body Shop went into administration in February, leading to the closure of 82 of its high street shops, while Homebase, which had 130 shops nationwide, went bust in November. About half of its stores were bought by the group behind The Range.
Shop closures soared by over a quarter last year
(Image: Getty)
These worrying closure figures have been released amid growing concerns about an impending surge in costs faced by retailers following Rachel Reeves’s Budget. The British Retail Consortium (BRC) has stated that the Chancellor’s changes to employer National Insurance contributions – raising the headline rate from 13.8 percent to 15 percent and lowering the threshold at which companies start to pay the tax – is forecast to cost retailers £2.3 billion.
On top of this, a 6.7 per cent rise to the minimum wage will increase wage bills by more than £2.7bn, the BRC said. In a third blow, high street stores are facing a jump in property taxes as business rate discounts are cut back. According to real estate firm Altus Group, the average shop rates bill will surge from £3,589 to £8,613 for 2025-26.
Alex Probyn, of Altus Group, said it was “foolhardy” to scale back targeted relief, which was intended to assist smaller retailers. He said: “Despite (the Labour manifesto’s) recognition of the undue burden business rates place on our high streets, that burden will be significantly increased.”
The CRR said that some 14,660 of the stores predicted to close this year will be smaller, independent retailers. The forecast rate is around 90 percent higher than the 7,793 in 2024.
A spokesman for the Treasury said: “We delivered a once-in-a-parliament Budget to wipe the slate clean and deliver the stability businesses so desperately need. Without our action, business rates relief for retail, hospitality and leisure would have ended in April this year.
“Instead, we are extending 40 percent relief for 250,000 properties and introducing a new permanently lower business rate in 2026, while more than half of employers will either see a cut or no change in their National Insurance bills.”