UK High Street is expected to be empty at a faster pace than this year as additional costs Rachel Reeves incurred businesses have been criticised for closures of shops and slowing down opening chain stores.
The survey predicts that after a slowdown from last year's one-day, one-day, to ten-day per day in October, the store closure rate will rise again as a result of the prime minister's tax budget.
Overall, photos of UK pressure-low-down boulevards have improved slightly in 2024 despite a considerable number of well-known banks and retail chains being closed. According to a Greenstreet study, the second lowest defeat in 2022 was the second-lowest in a decade when retail destinations bounced back after the coronavirus pandemic lockdown.
In 2024, more than 12,800 stores closed 1,277 fewer people than in 2023 – 9,002 opened, exceeding 130 a year ago.
The study did not include specific forecasts for the number of openings and closures in 2025, but it predicted costs, including an increase in minimum wages and increased contributions to additional national insurance, would accelerate the closure rate.
“We're looking forward to seeing you get the most out of our business,” said Kien Tan, Senior Retail Advisor at PWC. “Announcements by retailers and hospitality operators over the past few months suggest that many of them have become more cautious in their opening plans due to increased operating costs after last year's budget.
There was also fear about the impact on consumer spending related to expected recruitment as a result of Reeves changes.
2025 had a volatile start, but after a record low in February, consumer confidence has stabilized, according to figures from the UK's Retail Consortium Trade Organization, released on Wednesday.
This was linked to increased expectations for retail spending for households three months ahead. While expectations for DIY and home improvement have shifted to positive territory, changes in spending have been guided by food, where basic inflation, such as dairy, has returned.
Tan said the pace of emptying units at boulevards, retail parks and shopping centres appears to be stable after the pandemic, and now coincides with the rate at which shopping and services are moving online.
The PWC said the number of retail destination shops and services will continue to shrink by 2% per year in the long run, as the losses of key services, such as banks and chemists, have reduced the reason for heading there.
In 2024, chemists, pubs, banks, cars, or motorcycle services such as dealers and Mott Centers accounted for half of all closures of chain stores, with Lloyd's pharmacies resigning from leaving High Street and closings where Weatherspon is shaking dozens of numbers.
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UK banks have consistently closed branches as many consumers switch to digital banking, raising concerns about the impact on local communities. The number of UK bank branches that have been closed over the past nine years exceeded 6,000 earlier this year.
On Wednesday, Santander said it would close 95 more UK branches this year, cutting services by at least 50. Lloyd's Banking Group said it had closed another 136 branches in January.
The convenience store chain has grown as Morrisons and Asda moves into smaller stores, leading the fastest by coffee shops, takeaway and budget retailers.
Using data from Green Street, previously known as a local data company, the double report tracks over 200,000 chain outlets in over 3,500 locations, gaining insight into the changing landscape of High Street, shopping centres and retail parks. The PWC report does not include independent stores that are tracked individually.
