Last year posed significant challenges for the UK retail sector, with an average of 47 store closures every day. This live business update draws on data from the Retail Research Center to paint a clear picture of the year’s turnover in bricks-and-mortar retail.
Examining the center’s findings, 17,145 stores shut their doors in the UK during 2022, a rise of nearly 50 percent from 11,449 closures the year before. The same period saw 5,500 bankruptcies and 11,600 store closings driven by retail chains’ efforts to rein in costs. These figures underscore a broad shift in the sector as operators recalibrate profitability in a difficult economic landscape [Retail Research Center].
Professor Joshua Bamfield, Director of the Center for Retail Studies, noted that chains have continued to pursue cost reductions, and this trend is likely to persist into 2023. He warned that a number of large players could face severe financial stress, with some potentially entering bankruptcy proceedings as market conditions tighten [Retail Research Center].
Meanwhile, the British Treasury Secretary discussed how inflation and rising prices are shaping everyday life, emphasizing that tough policy decisions must be taken to curb price pressures. The commentary highlights the interplay between macroeconomic policy and retail health, a dynamic that is closely watched by business leaders and policymakers in North America as they monitor similar inflationary pressures and consumer demand shifts [Retail Research Center].