UK store closures reach five-year peak

The number of stores closed in the UK reached a five-year high as more than 17,000 shut their doors in 2022. According to a report from the Centre of Retail Research (CRR), one in five physical stores in the UK closed within the last five years. The number included 14,583 in 2018 and increased to 17,145 last year.

The industry has been in crisis for ten years due to an increase in rents and the financial crisis in 2008. But the reasons behind these recent developments include the shift in consumer behaviour and the growth of online retailing. According to CRR, the total of lost jobs in the retail sector increased from 105,727 in 2021 to 151,474 last year.

Since 2006, online retailing has been booming in the UK. The number of physical stores decreased while the online market share saw a 26.5 percent increase. The building of an online presence is an essential step for retailers which most stores in the UK have been implementing since 2010.