Retail closures in the West Midlands were the highest of any British region last year despite the actual rate of shutdowns being its lowest since 2018.
New analysis published by financial services firm PwC and researcher Local Data Company suggests the region was the part of the country most impacted by store closures in 2022, followed by Greater London and Yorkshire and Humber in third.
Last year, 1,024 shops in the West Midlands closed while 596 new ones opened, creating a net closure of 428 shops.
Despite being the worst region of the UK, it was still an improvement on 2021 which saw 1,676 closures against 641 openings, making a net closure of 1,035 shops. The 2022 figure was a net fall of -2.3 per cent, improving from -5.4 per cent in 2021.
By contrast, the East Midlands saw a net fall of -1.4 per cent last year, the third lowest in the country.
The report said the West Midlands saw some parts of the high street thriving with takeaways, convenience stores, DIY and pet stores bouncing back, helped by pandemic trends.
Across the country, stores are closing at their slowest rate since 2014, with net closures also at their lowest level in five years
Closures across England, Wales and Scotland were at 32 per day with 22 new outlets opening per day.
Retail parks remained the most resilient outlet type, the report said, with a small -0.3 per cent closure rate, while shopping centres also recovered at a promising rate of -1.6 per cent.
High Streets were slightly lower at -2.6 per cent but all outlet types saw a significant improvement in their net closure rates.
The twice yearly research tracks over 200,000 outlets in more than 3,500 locations to gain a picture of the changing landscape of high streets, retail parks, shopping centres and standalone outlets. To be included, retail operators must have five or more outlets nationally.
Sarah Phillips, PwC's partner and consumer markets leader for the Midlands, said: "In the last few years, the region has seen some major retailers exit the high street.
"However, it's not all doom and gloom as we're seeing some green shoots appear as the rate of store openings has doubled in line with store closures.
"It's unfortunate that business failures are part of a working economy, due to factors like business model shifts, changes in technology and consumer habits.
"We've been through a long period of generally lower levels of closures, predominantly due to government support and low interest rates.
"However, history shows us that, in challenging times, we also see an increase in innovation and opportunities for new stores and hospitality venues to thrive such as how restaurants pivoted during the pandemic to meal kits and home deliveries.
"Furthermore, we are seeing innovative store openings as retailers seek to provide experiences to consumers and better utilise space, mixing fashion with lifestyle, beauty and hospitality offerings while using the latest technology to entice younger shoppers.
"For example, the recent plans unveiled for the ex-John Lewis store in Grand Central include a restaurant, gym, food market, rooftop garden and co-working spaces, modernising away from a traditional department store.
"There are challenges ahead with a potential recession and the cost-of-living crisis continuing, however we have seen how quickly the tide can change and there is positive growth for retail across Great Britain as more people return to work and offices, boosting the high street."
