2022 worst year in five for shop closures

17,000 shopping sites shut down in the UK in 2022, the highest number for five years.

Data from the Centre for Retail Research (CRR) revealed that total closures on high streets, shopping parades, and out-of-town retail parks, were higher than in 2021.

The number of jobs lost in the retail industry jumped 43% to 150,000.

Although the economy began to reopen in 2022 following the impact of COVID-19, the retail sector was particularly hard hit as consumers tightened their budgets and costs for retailers soared including wage bills and energy prices.

CRR’s data revealed shops were closing at a rate of 47 per day. Over the year, large retail chains closed 6,055 shops while 11,090 independents closed. Many big names saw closures in 2022, including M&Co, Joules, and McColls.

Interestingly, only a third of the closures were due to insolvencies.

More than a third of closures were independents which decided to wind up their business, also called rationalisation.

Joshua Bamfield, director of CRR, said: “Rather than company failure, rationalisation now seems to be the main driver for closures as retailers continue to reduce their cost base at pace”.

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