PwC: Scottish store closures at 7-year low

PwC’s bi-annual report, using data from location data specialist Green Street, tracks more than 200,000 chain outlets in over 3,500 locations to gain a picture of the changing landscape of high streets, shopping centres, retail parks, and other out-of-town shopping areas.

During the first half of 2024 less than three stores closed each day in Scotland, with two new stores opening – resulting in net closures of less than one store per day.

From 1 January to 30 June 2024, 457 stores in Scotland closed their doors, while 335 were opened – resulting in a net loss of 122 shops and outlets belonging to multiples and chains (those with five or more outlets).

With the overall reduction at -0.8%, Scotland’s closures rate for the first half of 2024 is lower than the rate of 1.1% for the same period in 2023, and represents the lowest rate of closure since the first half of 2017 (-0.5%).

It is also lower than the UK average of -1.1%.

The analysis shows that retail parks remain the most resilient outlet type, with a rate of -0.3% closures in Scotland, versus -0.8% for high streets and -0.9% for shopping centres.

Ross Marshall, partner at PwC Scotland, said: “Across Scotland, net store closures are stabilising, and there continues to be a shift towards consumers prioritising experiences, time spent with family and friends, and convenience.

“The way we shop and use our high streets is still evolving, but that doesn’t mean members of the public don’t value their local high streets. Our recent Good Growth for Cities Index showed that, as an economic performance indicator, Scots placed a higher weighting on the quality of high streets than the UK average.

“As the popularity of online shopping shows no sign of waning, and consumers value the perks of retail park destination shopping – like free parking – there’s a need for policymakers to come together with communities and other key local stakeholders to support the adaptation and long-term future of our high streets.”

Across the UK retail parks demonstrate further resilience, with a 0.4% increase in the number of outlets, while standalone stores, those in shopping centres and those on high streets all experienced net closers (-1.0%, -1.0% and -1.5%, respectively).

The research reinforces a UK-wide trend witnessed over the last three years since the pandemic-era purge of retail, hospitality and service outlets, although the peak closure rate of -2.8% for the same period at the height of the pandemic has recovered to a more stable landscape since 2022.

While categories including chemists, banks and pubs make up half of all net closers across UK, several other categories that have traditionally experienced high closure rates – such as fashion, furniture and electrical retailers – saw an improvement in 2024.

Convenience stores, coffee shops, value retailers and cafés are the only categories experiencing growth at a rate of more than one store per week throughout UK – as several major grocery chains prioritise the opening of convenience stores and new drive-thrus, particularly in out-of-town locations, continue to be in demand.