More shops are expected to exit the UK high streets driven by driven by rising operational costs and a continued shift towards online shopping and transactions.
According to figures from PwC, a total of 12,804 outlets operated by chains (those with five or more locations) exited high streets, shopping centres and retail parks in 2024 – equivalent to 35 closures per day.
Although this marks a decline from the 14,801 closures recorded in 2023—and the second lowest in a decade after 2022—slow store openings have failed to offset these losses.
Chemists were among the hardest-hit sectors, alongside pubs, banks, and car-related businesses. These four sectors accounted for half of all net store closures last year.
The figures below show that the number of pharmacy closures fell from 787 in 2023 to 604 in 2024.
PwC
However, the PwC states that the reality may be “more optimistic” than the data suggests, citing that this figure may be “slightly skewed” due to the liquidation of one of the country’s largest chemist chains earlier in the year.
PwC analysis found that net store closures were higher in the South and East of England, whereas Wales, Scotland, and the North West experienced fewer net closures.
The continued reduction in high street stores has led to a noticeable decline in footfall.
“As the number of banks, chemists and pubs on the high street continue to decline, consumers are seeing fewer reasons to visit the high street as often as they did in the past. That’s leading to a reduction in footfall,” the report said.
Store openings lag behind
While store openings have surpassed pandemic-era levels, they remain nearly a third lower than in the mid-2010s.
In 2024, an average of 25 new stores opened daily, significantly below the peak of 34 per day recorded a decade ago.
Leisure businesses continued to dominate growth categories, accounting for five of the top nine sectors for new openings.
Convenience stores led the way, as large supermarket chains expanded their presence in this fast-growing segment of the grocery market.
Coffee shops were the only other category with more than one net opening per week in 2024.
Shift from High Streets to Retail Parks
Retail parks have continued to grow, significantly outperforming other locations.
There was only a 3% drop in the number of chain outlets in retail parks in a decade, compared with a 25% decline in shopping centres, and an almost 30% reduction on high streets.
Out-of-town locations are seeing fewer closures and a net increase in store openings.
According to PwC, this is driven by both leisure outlets and larger retailers shifting from “high streets to the retail parks” because of the greater convenience these locations offer consumers.
The Future of High Streets
In the short term, PwC predicts that increased operational costs following April’s hikes in the National Living Wage, employer National Insurance contributions, and business rates will accelerate closures, particularly as “marginal locations become unviable for retail and hospitality operators.”
Zelf Hussain, restructuring partner at PwC UK, told The Times that retailers will continue to face significant challenges in 2025.
“With substantial payroll cost increases and higher business rates taking effect in April, profit margins will remain under pressure, further straining high street retailers,” he said.
How high streets can reverse the footfall trend?
“High streets will need to actively look for opportunities to evolve, by understanding how retail parks and shopping centres have appealed to consumers through a combination of convenience of location, curation of their offer and coordination of multiple tenants,” the report suggested.
“Exploring alternative uses for housing, health and education and other local services could provide the much-needed boost that the UK’s high streets need,” it added.
