Britain is expected to face hundreds of shop closures every month with forecasts suggesting that the number of shops being closed will jump by almost a third this year
Britain is expected to face hundreds of shop closures each month after witnessing the loss of numerous branches of Body Shop, Homebase, and Carpetright.
Last year saw an alarming spike in shop closures with a total of 13,479 stores pulling down their shutters, hitting small independents the hardest, new research suggests. Now, retail experts are warning that “worse is set to come”, predicting that shop closures will increase by nearly a third this year.
The Centre for Retail Research (CRR) has forecast that 17,350 stores could close in the next 12 months, amounting to almost 48 per day. CRR Director Joshua Bamfield said while the closure numbers were not as bad as those in 2020 and 2022 “they are still disconcerting”.
The closures are often devastating for towns, especially those at risk of becoming Ghost Towns, marked by rows of boarded-up storefronts.
Many big names were among the 2024 losses, including Carpetright, which collapsed last year, although 54 of its shops were taken over by rival Tapi Carpets & Floors.
The Body Shop was also hit hard. The retailer fell into administration in February, which resulted in 82 of its high-street shops being closed, while Homebase, which had 130 shops across the country, went bust in November. Around half of its stores were bought by the group behind The Range.
The figures come amid growing concerns over an upcoming surge in costs faced by retailers following Rachel Reeves’s Budget, reports the Express.
The British Retail Consortium (BRC) said the Chancellor’s changes to employer National Insurance contributions, which will see the headline rate jump from 13.8 percent to 15 percent and lower the threshold at which companies start to pay the tax, will cost retailers £2.3 billion. They’re also facing a 6.7 percent minimum wage increase, adding over £2.7bn to wage bills, according to the BRC.
In another hit to high street shops, business rate discounts are being slashed, leading to an increase in property taxes. Real estate firm Altus Group predicts the average shop’s rates bill will rocket from £3,589 to £8,613 for the 2025-26 period.
Alex Probyn, of Altus Group, said it was “foolhardy” to scale back targeted relief which was designed to help smaller retailers. He added: “Despite (the Labour manifesto’s) recognition of the undue burden business rates place on our high streets, that burden will be significantly increased.”
The CRR said that some 14,660 of the stores predicted to close this year will be smaller independent retailers. This would be around 90 percent higher than the 7,793 in 2024.
A spokesman for the Treasury said: “We delivered a once-in-a-parliament Budget to wipe the slate clean and deliver the stability businesses so desperately need. Without our action, business rates relief for retail, hospitality and leisure would have ended in April this year.
“Instead, we are extending 40 percent relief for 250,000 properties and introducing a new permanently lower business rate in 2026, while more than half of employers will either see a cut or no change in their National Insurance bills.”
