The world of high-street retail has been through a rollercoaster ride in the past year, with PwC's latest report on store openings and closures in the UK revealing some interesting insights. As a leading player in the commercial real estate industry, we at GetPlace.io are taking note of the report's findings and how they impact our sector.
According to the report, the UK saw a net loss of 10,000 stores in 2022, with a total of 17,500 stores closing their doors, and only 7,500 store openings. The fashion and footwear sectors were hit the hardest, with 2,700 and 40% increases in store closures respectively. This reflects the changing consumer behavior, with the pandemic accelerating the shift towards online shopping, and customers preferring to shop from the comfort of their own homes rather than venturing out to physical stores.
This trend is particularly evident in the hospitality and leisure sector, which experienced a 10% increase in store closures compared to the previous year. The report notes that the pandemic has had a lasting impact on the retail industry, with consumers becoming more conscious of their spending and opting for cost-effective solutions.
However, the report also provides a glimmer of hope for the industry, with the rise of online retailers opening physical stores. The number of online retailers opening physical stores increased by 22% in the past year, particularly in the fashion and beauty sector, with online retailers such as ASOS and Boohoo opening physical stores in the UK.
As we at GetPlace.io navigate the changing landscape of the commercial real estate, we see this as an opportunity to adapt and evolve our approach. The rise of online retailers opening physical stores means that we need to consider how we can cater to this changing demand, by offering flexible and adaptable commercial spaces that can accommodate the needs of both online and brick-and-mortar retailers.
The report also highlights the importance of location in the retail industry, with London and the South East experiencing the highest number of store closures. However, the North West and Yorkshire and the Humber regions saw the highest number of store openings. This reinforces the importance of regional strategies in commercial real estate, and how we can tailor our services to meet the needs of local businesses.
In conclusion, PwC's report on store openings and closures in the UK for 2022 provides valuable insights into the changing landscape of the retail industry. As a leading player in the commercial real estate sector, we at GetPlace.io are taking note of these findings and adapting our approach to meet the changing needs of our clients. With the rise of online retailers opening physical stores, we see this as an opportunity to offer flexible and adaptable commercial spaces that cater to the needs of all retailers, and to focus on regional strategies that can drive growth and success for businesses.