MW U.K. retail store closures hit five-year high

By Anviksha Patel

As government COVID-19 support packages ended, large retailers and independents accelerated the pace of closures last year, according to new research published.

Over 17,000 retail shops closed last year -- amounting to 47 a day, plus the loss of more than 150,000 jobs. That's the highest total of closures in five years and 50% up from 2021, the Centre for Retail Research $(CRR)$ said, which clarified that the figures are gross and don't account for new store openings.

The main driver for closures was rationalization, where retailers continued to "reduce their cost base at pace," according to Professor Joshua Bamfield, director of the CRR, adding that the trend is expected to continue through to 2023.

"A few big hitters may well fail, too," he added.

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11,636 stores were closed due to rationalization programs and 5,509 closures stemmed from insolvency proceedings.

Researchers say store closures due to corporate collapses, like those of fashion and beauty retailer Debenhams, declined 56% last year.

Last January, Boohoo announced UK:BOO it was buying the assets of Debenhams from its administrators for GBP55 million in cash.

The main retail insolvencies of 2022 included convenience retailer McColl's and clothing chain Joules. A rescue plan was salvaged with Next buying Joules out of administration but 19 branches were closed as part of its administration process. Supermarket chain Morrisons , McColl's new owners, will close over 100 branches.

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-Anviksha Patel

(END) Dow Jones Newswires

January 03, 2023 07:08 ET (12:08 GMT)

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