Market Research Suggests High Street To Continue Suffering As Closures Could Reach 28 A Day

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28th February 2013 12:17 - Retail

A report by PricewaterhouseCoopers (PwC) and the Local Data Company has shown a tenfold increase in high street store closures in the last year.

Their report shows the net number of store closures was 1779 in 2012 which is an increase of more than 1000% on the figure of 174 for 2011.

With the recent collapses of HMV, Blockbuster, and Jessops, they added that the number of stores closed by retail chains could double to 28 a day in 2013 from 14 a day in 2011.

Perhaps emblematic of times of economic  struggle, the report showed that payday loan stores (20% increase in high street presence) and pawn shops (13% increase) are the fastest growing retailers on the high street while card shops, computer game shops, and health food shops are the most depleted.

Card shops suffered a net fall of 188 shops (23% drop), mainly due to Clinton Cards going bust in 2012, while Game going under significantly contributed to a 45% fall in high street computer game outlets.

Mike Jervis, insolvency partner and retail specialist at PwC, said: "2012 saw more retail chains go into insolvency than ever before. The failed chains generally shared two problems – too many stores and too little multichannel activity."

The survey, which drew data from 500 towns and cities, also showed that the number of store closures outstripped the number of store openings in every region in the country.

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