Coffee shops and takeaway food stores are thriving on the high street when compared to other business types, according to new research.
The PwC and The Local Data Company report showed that retailer net closure rates dropped by 50% in 2015, from 987 to 498, and overall, closures were at their lowest levels last year since 2010.
According to PwC analysis compiled by the Local Data Company (LDC), 5,138 outlets closed in 2015 compared to 4,640 openings, equating to a net reduction of 498 shops. This is a drop of 50.4% when compared to 2014 where 5,839 outlets closed compared to 4,852 openings, a net reduction of 987 shops.
This is the lowest closure rate in five years since the peak seen in 2012, when 20 stores a day were closing. It also represents the lowest levels of High Street churn - entries and exits – since 2010 as retailers moderate their response to shifting customer shopping habits.
The analysis of 66,180 outlets operated by multiple retailers (those with five or more stores) in 500 town centres across Great Britain, found that overall volumes of activity (openings and closures) have fallen from 10,362 in 2011 to 9,778 in 2015 - a 5.6% drop.
The report showed that while other business types experienced net losses last year, coffee shops experienced a net increase of 80 stores and takeaway food stores had a net increase of 45.
American-themed restaurants also fared well, rising by 37 units.
So far this year, in the period up to the 2nd week of March, there was a net decline of -217 retail units across the top 500 town centres.
PwC insolvency partner and head of deals retail specialist Mike Jervis said openings in 2015 were concentrated on experience type outlets - especially food and beverage.
Leisure chains (food, beverage & entertainment) have continued to thrive with a slight increase in the net change in units from +233 (1.77%) in 2014 to +271 (+1.77%) in 2015.
Matthew Hopkinson, director of The Local Data Company, said the numbers illustrated the improvement in consumer confidence, low interest rates and low inflation that characterised 2015.
“They also show how high streets continue to evolve from a pure purchasing environment to one of experiences, services and above all food and beverage consumption rather than primarily goods consumption.”
“I expect the overall trend to remain the same as banks continue to close large numbers of branches, traditional comparison goods retailers rationalise store numbers and the fact that the current exceptional growth of food and beverage outlets is unlikely to continue at the same pace in 2016.”
