Throughout 2022, 888 stores north of the border closed their doors, while 669 shops were opened – resulting in a net loss of 219 stores managed by retailers with more than five outlets.

With the overall reduction at -1.4%, Scotland’s closure rate in 2022 is almost a quarter of the 2021 rate, when it was -4.7% and is even less than the pre-pandemic rate of -3% (in 2019). It is also below the Great Britain average of -1.7%.

With the spread of closures between GB nations and regions at its lowest since the PwC and LDC research began in 2014, the proportionate rate of closures in Scotland for 2022 was among the lowest of the 11 regions examined. Only the South East (-1.3%) has seen a slower rate of decline, while the East Midlands and North East were on a par with Scotland, with a net decrease in multiple retailers also at -1.4%.

Like the rest of Great Britain, retail parks in Scotland remain the most resilient outlet type, with a small increase in outlets (+0.1%). North of the border the high street showed greater resilience, with a -1.5% closure rate – compared with -2.6% for the whole of GB. Shopping centres experienced a higher rate of decline, with a closure rate of -2.0%.

Susannah Simpson

Susannah Simpson, private business lead for PwC Scotland, said: “Despite the annual reduction of stores across our shopping centres and high streets continuing, our research shows real improvement in the rate of decline in Scotland – with our retail parks demonstrating a small amount of growth during 2022.

“It’s heartening to see confidence increasing among operators as they invest back into bricks and mortar after some years of uncertainty across the sector. Innovative openings including services and the use of technology really appeals to younger shoppers who have indicated they still enjoy shopping in-store.”

Pandemic trends underpinning recovery

Eight of the 100 outlet categories tracked by the Local Data Company saw net growth in double digits, half of which were leisure outlets.

Takeaway outlets continue to top the league table for new openings, with demand for both food on the go and home delivery continuing post pandemic. Many are franchise operators, as are the other success story: convenience stores.

Nimble, with significant local knowledge and capital-light, these local entrepreneurs can move quickly and service gaps in the market backed by strong brands and helped by lower rents as other operators retreated post-pandemic. Other categories, such as DIY and pet stores are bouncing back, helped by pandemic trends.

MS Simpson said: “It’s clear the way in which we use our high streets is changing. Takeaway shops and convenience stores sit alongside DIY shops, restaurants, coffee shops and pet shops as the fastest growing categories within our analysis – and retail and leisure operators are responding positively to changing consumer demand.

“You only have to look around key cities like Glasgow, Edinburgh and Aberdeen to witness the growing café culture and abundance of eateries consumers wish to see. The proposed changes to Buchanan Street in Glasgow also signal a major change for what is currently a retail ‘hub’ in Scotland’s largest city.

“The slightly slower recovery on the high street is a symptom of the need to coordinate fragmented landlord bases - and other interested parties - with the type of occupant. However, while the recovery is at a slower pace, it is still evident.

“We would hope to see new openings encouraged thanks to stabilising rent levels and the upcoming changes to business rates in April - a welcome boost alongside the positive picture painted by retail parks, shopping centres and local entrepreneurs.”