More than 13,000 high street shops permanently closed their doors last year, with experts warning of “worse set to come” in 2025 due to Budget cost increases. The Centre for Retail Research’s new figures show that UK retail store closures rose by over a quarter compared to the previous year.
They also predict more closures this year as national insurance contribution hikes and higher wages impact local stores. The centre’s recent analysis found that 13,479 stores, equivalent to 37 each day, permanently closed throughout the year, marking a 28% increase from 2023 levels.
The preliminary data revealed that the majority of closures were small independent retailers, which have seen a reduction in financial support during the Covid era. It was found that 11,341 independent stores closed during the year, a 45.5% increase from the previous year.
Meanwhile, larger chains closed 2,138 stores over the year. The data also showed that over half of all closed stores, totalling 7,537, were shut down due to some form of insolvency proceedings.
Ted Baker was among high street retailers which shut stores during the year
(Image: Jonathan Brady/PA)
Major chains including Ted Baker, Homebase and Carpetright closed stores after entering insolvency during the year. An additional 5,942 shops were closed through “rationalisation” as part of cost-cutting programmes. Retailers including Boots and Shoe Zone reduced their store numbers during the year.
Professor Joshua Bamfield, director of the Centre for Retail Research, expressed concern over the future of retail, stating: “Whilst the results for 2024 show that although the outcomes for store closures overall were not as poor as in either 2020 or 2022, they are still disconcerting, with worse set to come in 2025.”
The Centre for Retail Research predicts a rise in store closures to about 17,350 during 2025, with approximately 14,660 coming from independent retailers. This is anticipated to be driven by an increase in national insurance contributions and the national minimum wage, announced in the October Budget and due to take effect in April.
Small retailers are also expected to be significantly impacted by changes to the current business rates tax discount for firms in the sector. Commercial real estate firm Altus Group revealed that the cut in the business rates discount from 75% to 40% in April, announced at the 2024 autumn budget, will see the average shop’s rates bill jump from £3,589 to £8,613 for 2025/26.
Alex Probyn, president of property tax at Altus, criticised the decision as “foolhardy” after a challenging year for the sector, adding: “Despite Labour’s manifesto recognition of the undue burden business rates place on our high streets, that burden will be significantly increased.”
However, there was a glimmer of hope when the Co-op announced plans to open 75 new stores across the UK in 2025.
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