In 2024, the retail sector is experiencing unprecedented disruption with nearly 40 stores shuttering each day, marking a new challenge for high streets.
- A report by PwC highlights a troubling trend of 6,945 store closures since the year’s start, translating to 38 closures per day.
- Notably, the rate of store openings has lagged, with only 25 new stores emerging each day as opposed to the accelerated closure rate.
- Despite a general downturn, value retailers and convenience stores have shown resilience, opening more than one store per week.
- This retail turbulence has resulted in a net loss of 12 stores per day, underscoring a significant contraction in retail spaces across locations.
In 2024, the retail industry has been confronted by a daunting challenge—an average of almost 40 stores have closed every day. This staggering number signifies a substantial increase from the previous year’s closure rate of 36 stores per day, as revealed by recent data from PwC. Such closures have heavily impacted high streets, shopping centers, and out-of-town retail areas, indicating a pressing concern for the sector’s future.
The report by PwC states that a total of 6,945 retail outlets have ceased operations this year. This has resulted in a noticeable deficit compared to store openings, as only 4,661 new outlets have been introduced, averaging about 25 openings daily. This disparity highlights a growing challenge within the retail landscape as closures vastly outnumber openings, threatening the vibrancy of traditional retail environments.
Amidst this challenging scenario, value retailers and convenience stores, however, have shown resilience in their operations. According to the report, these sectors have defied the broader trend, achieving growth with more than one store opening weekly. Specifically, value retailers have launched 39 new outlets, while convenience stores have inaugurated 85 new stores this year, showing some optimism within specific sub-sectors of the retail environment.
The net effect of these developments has been a contraction of the retail footprint, with an average of 12 more stores closing than opening each day. This decline is reflected in a net reduction of 2,284 stores in key retail locations, including high streets and shopping centers, during the year’s first half. However, fewer fashion store closures have been observed, with under 100 shutting doors in 2024 compared to over 1,000 in the comparable period of 2021.
Lisa Hooker, PwC’s industry leader for consumer markets, acknowledged the reduction in net closures but emphasized the necessity for strategic stakeholder intervention. “The good news is that the rate of net closures has stabilized, and consumers will always want somewhere to grab a coffee, last-minute present, or enjoy the experience of in-store shopping,” Hooker expressed. She advocates for collective efforts by policymakers and communities to revitalize struggling retail spaces, adapting them to a hybrid world that blends convenience, variety, and entertainment for consumers.
The ongoing pattern of store closures underscores the urgent need for innovation and cooperation to sustain retail spaces.
