(qlmbusinessnews.com Fri. 13th Sept, 2024) London, UK —
“Retail Crisis: Pharmacies, Pubs, and Banks Lead High Street Closures”
Britain's High Streets are seeing a surge in closures, with an average of 38 shops shutting their doors every day in the first half of 2024, according to recent data. Pharmacies, pubs, and banks accounted for half of the closures, signalling significant changes in town centres across the country.
Research from accountancy firm PwC reveals that a total of 6,945 stores closed between January and June 2024. However, considering new store openings, the net closure rate stands at 12 shops per day — a slight increase from the same period last year, which saw 11 shops shutting down daily.
The data shows that, on average, 18 pharmacies, 16 pubs, and 9 banks closed every week during this period. In contrast, only a handful of new businesses, such as three convenience stores and one café chain, opened, highlighting the growing challenges faced by local High Streets.
The impact of these closures is being felt across communities. Maureen Brewster, the owner of Avoca gift shop in Pershore, Worcestershire, shared her frustration after losing a pharmacy and the town’s last bank in the first half of 2024. “At 85 years old, it's finally forced me to bank online,” she told reporters. “I can’t afford to use our card machine for transactions under £5 due to fees and taxes. So, if people can't withdraw cash from banks or ATMs, I lose a sale. It's not ideal – it's not good for me or my customers.”
Pershore, a town of just over 7,000 residents, once had five banks but now relies on a temporary banking hub and a Post Office inside a Tesco Express. Despite these efforts, the question remains for towns like Pershore: how to fill the empty spaces left behind?
Kien Tan, a senior retail adviser at PwC, notes, “The challenge for High Streets is that services like banks, pubs, and chemists provide people with a reason to visit regularly. However, there’s been a long-term shift towards online services, reducing the need for physical locations. When people do go out, they prefer more convenient destinations like retail parks, where they can drive and complete all their shopping in one trip.”
Adding to the closures, Lloyds Banking Group recently announced plans to shut an additional 55 branches by the end of 2025. The PwC data covers businesses with more than five outlets across sectors, including retail, hospitality, gyms, banks, and hairdressers, but excludes independent traders.
While over 4,600 new outlets have opened so far this year — an increase from the same period in 2023 — it has not been enough to offset the 2,000 net closures, a slightly greater decline than the previous year.
“We’ve been tracking these changes for over a decade, and each year the number of closures exceeds openings, primarily affecting High Streets,” added Mr. Tan. “The reality is that we must start reimagining and transforming these spaces for different uses.”
Winners and Losers on the High Street
The data shows that chemists have been the hardest hit, with Boots closing multiple stores and Lloyds Pharmacy disappearing entirely. On the other hand, convenience stores have been the strongest performers, with supermarkets like Morrisons and Asda opening new branches.
The takeaway and restaurant sector also faced difficulties, with dozens of closures this year as higher costs and weaker demand weigh on the hospitality industry. However, retail parks remain a bright spot, with chains expanding their presence for the second consecutive year, driven by the growing demand for drive-through locations.
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