Member Article

Store closures steady across the North East

Store closures rates in the North East have remained the same in the first half of 2013 compared to H1 2012 with 124 closing over the first six months of this year- according to PwC research compiled by the Local Data Company (LDC).

The study of 500 town centres across the UK has shown that while closures remain steady in the region, the number of store openings has slowed with 86 opening from January to June 2013 compared to 109 for the same period last year. Nationally, the rate of store closures stores has fallen slightly from a decline of more than 20 a day in the first six months of 2012, to 18 per day in the first half of 2013. The changing profile of town centres is very clear as goods shops of a more traditional type (e.g. shoe & clothes shops) pulled down the shutters. This comes in stark contrast to a near tenfold increase in the UK in the openings of leisure (food, beverage & entertainment). Sean Hamilton, director PwC Newcastle said: “It is still tough for the retail sector and these figures reflect a steady outlook for the region but growth is still some way off as consumer spending and confidence remains low. The shifts in multiple retailers’ store portfolios are a barometer for changes in our society and its habits.

“Closures in areas such as the photography and video sectors reflect the sea-change in how consumers are spending - the well-publicised insolvencies at Jessops and Blockbuster are stark proof of that.

“Women’s clothing store reductions reflect the intense competition in this sector, with so many fascias on our high streets. More convenience shops have opened as multiple grocers seek ways to increase further their market share.”

This was posted in Bdaily's Members' News section by PwC .