Hundreds of South West chains including restaurants, department stores and retail outlets were shut down in 2021, new research has found.
According to analysis by PwC, independent retailers have an opportunity to “revitalise” city centres in the region, after more than 1,500 chains closed in the West Country last year.
The rate of chain store closures in the South West has grown for a fifth consecutive year, according to the research from PwC compiled by the Local Data Company.
The study found 1,546 shops closed in the region in 2021, while 615 opened - a net closure rate of 4.6%. This was below the mainland UK average of 4.7%, with more than 10,000 chain stores disappearing from retail locations.
PwC said difficult trading conditions for South West retailers had been exacerbated by the Covid-19 pandemic, but added there were signs vacancy rates were beginning to stabilise.
Tom Ayerst, PwC’s senior partner in the West, said “hopefully” the sector had seen the worst of closures brought on by the pandemic.
Mr Ayerst said: “The South West has long been a place where independent retailers and businesses are supported and can thrive. They will look at the vacant premises in our shopping centres and on our high streets as opportunities for growth as we step into the post-pandemic world. Their creativity and novelty have the potential to revitalise our city centres.”
In total, 7,160 shops opened in the UK in 2021 compared to 17,219 closures. PwC said the increase in closures had been driven by consumer behaviour during the pandemic, as well as longer term trends such as the shift to online shopping.
The study found footfall recovery last year had been faster in out-of-town retail parks benefitting from easy access and parking, while city centre shopping centres were hit particularly hard by closures of fashion retailers, department stores and casual dining restaurant chains.
Across the UK, retail parks saw the smallest net change of any location (593), compared to high streets (4,287) and shopping centres (1,690).
PwC said the number of openings had declined by more than 25% since pre-pandemic levels, with many of the 7,000 new openings in 2021 down to “natural churn” and re-siting of existing stores.
It added that the number of closures was now expected to slow down through 2022, and following the collapse of some large fashion and department store chains, future store closures should begin to “level off”.
Lisa Hooker, consumer markets lead at PwC, said “location matters most” with multiple operators now relocating central stores to reflect consumer behaviour.
Ms Hooker said: “There is a pressing need to radically reshape and even repurpose towns and city centres plagued by these empty units and shopfronts.
“To regain lost footfall, high streets must understand why retail parks are so attractive to consumers or look for ways to better serve local needs, encouraging independent retailers and entrepreneurs to take this opportunity to grow into the gaps that are emerging.”
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