STORE closures in Scotland are at their lowest rate since 2019, according to new data from PwC and The Local Data Company.
Some 536 Scottish stores closed during the first half of this year, while 356 shops opened, resulting in a net loss of 180 managed by retailers with more than five outlets.
With the overall reduction at -1.2%, Scotland’s closure rate has improved from the first six months of 2021 when it was -2.8% and sits just shy of the pre-pandemic rate of -1.1%. However, it remains above the GB average of -1.1%.
The Local Data Company tracked 204,618 outlets operated by multiple operators across the UK between the start of January and the end of June, finding that while the spread of closures between nations and regions is at its lowest for seven years, the proportionate rate of closures in Scotland was fourth fastest of the 11 examined by the study.
Only greater London (-1.3%), the west Midlands and east of England (both -1.4%) have seen a greater net decrease in multiple retailers.
While all 11 areas experienced net losses, every nation and region studied saw a slowing pace of decline, with closures across GB slowing to the lowest rate in more than seven years.
PwC’s latest Store Openings and Closures report suggests that recovery is being driven by leisure categories, as a result of post-pandemic pent-up demand.
Closures have been accelerating since the mid-2010s, driven by the shift to online retail and services such as banking and post offices. But this was offset to some extent due to the rapid rollout of leisure operators, such as casual dining restaurant chains and coffee shops.
A rapid shake-out during the pandemic in 2020 and 2021 predominantly affected retailers which had over-expanded such as restaurant chains and those that failed to adapt their operating models to multi-channel trends, most notably fashion.
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