More than 900 stores close in region in first half of the year

Research from professional services network Pricewaterhouse Coopers, and compiled by the Local Data Company, showed that a total of 929 shops closed in the region between January and June.

With 373 shops opening, it has resulted in a net loss of 556 stores from high streets, shopping centres and retail parks.

Nationally an average of 48 chain stores shut each day with only 19 new ones opening.

Across the wider Midlands region 601 shops opened and 1,511 closed, while the national daily average of openings was 48 compared to 19 openings.

The overall net closure rate for the Midlands fell by 86 (eight per cent) on the same point in 2020, despite some well-known high street fashion and department stores exiting the market in early 2021.

For the West Midlands there were 373 openings and 929 closures compared to 444 openings and 1,000 closures in the first half of 2020.

Sarah Phillips, Pricewaterhouse Coopers partner and consumer markets lead for the Midlands, said: “After an acceleration in store closures last year coupled with last minute Christmas tier restrictions and lockdowns extending into 2021, we might have expected a higher number of store closures this year. Government support has proved to be the lifeline for many to weather the storm and survive the pandemic. The fate of many operators has also been helped by resilience in consumer spending, including investment in the home through lockdown and using enforced lockdowns savings for ‘revenge spending’ when possible.

“However, operators are far from out of the woods and the next six months will be a make or break for many chains, particularly with the reinstatement of full business rates for all but the smallest operators, the winding-down of furlough support and agreement yet to be reached between many operators and landlords on rent arrears. There is also continued uncertainty for hospitality businesses who will be apprehensive of further restrictions on operating and the possible requirement for vaccine passports later in the year.

“But the good news is that there are some green shoots of optimism. Consumers still want a physical shopping experience and a number of chain stores and restaurants are opening. There is opportunity for operators who can be nimble, taking advantage of the current situation to either open new stores or to move stores to better locations.”

Government support extended furlough and business rates relief until June which have enabled some operators to stay in business. A rent moratorium has also prevented landlords from evicting operators due to non-payment of rent or arrears.

Retail parks have seen a smaller number of net closures compared to high streets and shopping centres.

In the West Midlands retail parks saw 43 openings and 68 closures, shopping centres lost 161 and gained 47 while High Streets gained 90 and lost 313.