Data released by Local Data Company (LDC) and the British Independent Retailers Association (bira) shows that independents opened the fewest number of shops in Britain’s top 500 town centres since LDC records began in 2009. The number of independent shops opening reduced from 11 a day in 2010 to just two a week in 2015.
Independent shops saw an increase of just 117 shops (+0.11%) in 2015, versus a peak of growth of 4.01% (+3949 shops) in 2010.
Analysis of town centres, shopping centres and retail parks shows that chain retailers have continued to decline, with a net loss of 1147 shops (-0.59%) in 2015 across GB, which compares to -1436 shops (-0.76%) in 2014.
Matthew Hopkinson, director at the LDC, comments: “Independents are a key component of our high streets and this is seen both in the fact they represent a majority (65%) of the units but also the diversity and vibrancy they can bring along with their direct connection to local economies. Whilst the numbers remain positive the dramatic decline in the growth of independents from 11 openings a day to just one a week reflects the challenges many independent businesses face.
"A number of factors are at play but one of the major factors has been the move of many high street anchor retailers such as Next, M&S and River Island from the high street to out-of-town retail parks. These moves result in lower footfall volumes as people follow them out of town, which has a big impact for the smaller retailers left behind.
"2016 will be a pivotal year for independent births and deaths as history tells us that the ability to go from a large number of openings (+5615 in H1 2010) to a large number of closures (-1666 in H2 2010) in a short time is entirely possible. Only time will tell.“
Michael Weedon, deputy chief executive of bira, adds: “Right under our noses great shifts in the composition of our high streets continue to develop. They happen in plain sight, immediately in front of us, yet are only visible in their full magnitude in the LDC data. While one in eight units changed hands last year, with more than 40 new independents opening every day in the top 500 towns and only slightly fewer closing, the balance produced only a tiny gain across the whole.
"But within the figures we see a powerful rebalancing away from product based retail towards service providers, leisure operators and convenience operators. For multiples the picture is different – of the four subsectors only leisure outlets increased in number. Very gradually we are seeing a new high street emerge, as always happens over time, as commerce adapts to ever-changing conditions.”
Independents now account for 65% (-1% change from 2014) of all retail and leisure units in Great Britain.
