Scotland closed more shops than any other part of the UK in 2016 - PwC
One store a day closed last year in Scotland, with the banks, fashion outlets, charity stores and mobile phone shops being the hardest hit, according to PwC research compiled by the Local Data Company (LDC).
However the data also reveal that Scots are amongst the regions with the largest number of units opening.
The analysis of 66,807 outlets operated by multiple retailers in the top 500 town centres across Great Britain found that overall volumes of activity (openings + closures) have fallen from 13,109 in 2012 to 9,964 in 2016 (-24 per cent). Across the land 5430 business outlets closed while 4543 new stores opened.
All areas across Scotland surveyed recorded an overall decrease in shops, with Leith in Edinburgh having the highest rate of closures with a 10.53 per cent drop, followed by Ayr’s 8.3 per cent fall. Falkirk, which traditionally has more store openings than closures, was the most resilient with a 0.78 per cent drop.
Fashion stores had the largest number of closures at 32. A total of 15 banks, 13 charity shops and 12 mobile phone stores also shut.
The falls were partially offset as more stores were opened in Scotland than elsewhere in Britain, except in the north-east of England.
Fast-food outlets were among the most popular new stores with 14 opening, followed by 10 convenience stores, 10 tobacconists and seven new TV equipment servicing firms.
Mike Jervis, retail specialist at PwC, said: “Fashion is migrating to online at a faster rate than ever, leaving closures in its wake. Last year was relatively benign for restructuring and insolvency in all sub-sectors of retail, so the net closures point to structural changes in customer behaviour more so than a consumer slowdown.”
In Scotland, every region was impacted. Even Falkirk, which traditionally sees more stores openings than closures, saw more stores close with a net loss of one unit. The most popular new openings in Scotland were fast food units (14 new), convenience stores (10 new), tobacconists (10 new) and TV equipment servicing firms (seven new). The largest closures were in fashion shops (32 units), banks (15 units), charity shops (13 units) and mobile phone shops (12 units). Across Great Britain, the fastest growing retailers were in leisure, hearing aids, tobacconists and Marks Spencer’s foodhall outlets.
Mark Addley, deals director at PwC Scotland, said: “The average of around one closure per day has been the Scottish average for most years since 2012 – but that will be of little comfort to people who have lost their jobs and livelihoods because of this. “Overall, we are seeing far fewer closures due to outright insolvencies, but more due to the lower key restructuring of store portfolios. “Where there is some good news is that Scots are also leading the way in openings and we shouldn’t lose sight of that. In this era of mobile banking, internet shopping and less people going to High Streets, there will be change. What we have to see is companies adapting to that.
“And while those in retail parks may feel more secure, even there, caution has to be exercised as we are seeing companies that previously had two or more outlets in larger parks consolidating into one unit. This has particularly impacted on mobile phone stores. “Looking ahead, I doubt the figures are going to improve by the end of 2017 for areas like banking as we’ve seen a number of companies announce branch closures of late but other areas may pick up depending on the levels of tourism Scotland and the GB sees over the summer.
“While fast food and tobacconists have been the persistent fastest growers of new opening in Scotland for a few years, it’s interesting to note the top risers across Great Britain. Not only do you have the rise of the Marks and Spencer’s food halls on an aggressive opening track - 30 new ones in 2016 - but the top three outlets in terms of new openings are hearing aid units, leisure and swimming facilities and dental care - all of which have opened more than 110 new units each. A sign of a changing demographic but also a society that is trying to improve fitness and how it looks.”