Retail closures in London stabilised last year after rising during the pandemic, according to a new survey.
The capital lost about a store a day last year, with five stores closing and four new stores opening, according to PwC.
Head of retail at PWC Jacqueline Windsor said the figures indicated “cautious optimism” for UK retail.
London’s closure rate in 2024 was about a fifth lower than in 2023, marking the lowest rate since the late 2010s.
“[There are] opportunities for stakeholders to seize momentum and unlock growth by tackling market challenges and capitalising on evolving consumer behaviours,” Windsor added.
“Whether it be investing in technology to enhance the consumer experience or drive productivity improvements, 2025 could be a big year for retailers who are smart about how they play in the market”.
Restructuring partner at Pwc Zelf Hussain said while the results were positive, retailers “continue to face significant challenges in 2025”.
“While household finances are improving, consumer confidence remains cautious.
“Additionally, with substantial payroll cost increases and higher business rates taking effect in April, profit margins will remain under pressure, further straining high street retailers.”
Retail parks take lead over high streets
Retail parks were the only location type – out of parks, shopping centres and high streets – to show growth.
The number of outlets at retail parks increased by 0.4 per cent, accelerating from 0.1 per cent in 2023.
Shopping centre sites shrank by 1.2 per cent, while the number of high street stores fell by 2.4 per cent. The performance of both, however, improved year-on-year.
High streets have struggled with a lack of customers – even by early 2023, customer footfall was 10 per cent lower than in 2019, and in major cities, even less.
Online shopping, a Covid-19 hangover and high taxes have made the issue worse.
There are 25 per cent fewer shopping centre chain outlets and almost 30 per cent fewer high street outlets than in 2014.
Unfortunately for the high street, it looks like a recovery for in-store shopping may be focused on the more-convenient, driver-friendly retail parks.