SCOTLAND suffered one store closure almost every day last year by retail chains, underlining the pressure on consumers from grim economic conditions.
The number of closures north of the Border by multiple retailers leapt from 193 in 2010 to 320 last year, said a survey published by accountancy firm Price-waterhouseCoopers (PwC).
This dramatic deterioration dashed hopes an improvement between 2009 and 2010 had been the start of a recovery.
The survey on store closures by multiple retailers comes hard on the heels of grim Scottish high street sales figures published this week.
The Scottish Retail Consortium statistics showed the value of retail sales north of the Border in January was down 1.5% on the same month of last year. This was the steepest year-on-year fall in sales in any month since comparable records began in 1999.
The PwC survey, based on figures from the Local Data Company (LDC), shows multiple retailers in Scotland opened 283 stores last year.
This meant a net reduction of 37 in their combined number of Scottish outlets.
This was in contrast to a net rise of 67 in their total number of outlets in 2010, when they opened 260 stores.
There had been a dramatic reduction in the number of store closures by major retailers during 2010, with the number dropping to 193 from 349 in 2009.
The breakdown of the PwC/ LDC figures reveals that Edinburgh, Perth, and Aberdeen were hit particularly hard.
Cara Haffey, corporate finance director and retail commentator at PwC in Scotland, said: "With high street retail sales figures in Scotland showing ongoing decline and growth in online spend continuing to rise, there can be no doubt people are changing not only the way they shop, but how often they buy goods.
"We will see greater importance being placed by retailers on demonstrating a return on retail space. After all, there is no point in paying for space that is simply not earning its keep."
In Edinburgh, including Leith, multiple retailers closed 107 outlets and opened only 79, giving a net reduction of 28. In Perth, they shut 26 stores and opened only 12. And, in Aberdeen, retail chains closed 54 stores and opened 42.
However, while Falkirk, Glasgow and Paisley also saw more closures than openings, there was a net increase in such stores in Ayr and Dundee.
Bruce Cartwright, head of business recovery services at PwC in Scotland, said: "For those retailers in distress, it is crucial they don't bury their heads in the sand.
"No retailer is an island – there is a strong tie between them, their suppliers, landlords and owners of its locations, banks and credit insurers, as well as their employees. They need to have honest and open conversations with all their stakeholders and partners.
"Early dialogue and consensual arrangements can help turnaround retail businesses."
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