High Street Closures: The Impact on Communities
The high streets of Britain have been facing a significant challenge in recent years, with a growing number of closures affecting various types of businesses. According to data from the first six months of this year, it is evident that pharmacies, pubs, and banks are among the hardest-hit sectors, making up half of the closures.
A total of 6,945 stores have closed so far in 2024, amounting to an average of 38 shops shutting down every day. While this number may seem alarming, it is crucial to consider the broader context. When factoring in new store openings, there is a net closure of 12 stores per day, slightly higher than the previous year.
The Impact of Closures on Communities
The closure of 18 chemists, 16 pubs, and nine banks on a weekly basis between January and June highlights the significant changes taking place in town centers across the country. With only three convenience stores and one café chain opening in their place, the gaps left by these closures are becoming increasingly noticeable.
One such example is Maureen Brewster, the owner of Avoca gift shop in Pershore, Worcestershire. She experienced the closure of a pharmacy and the town’s final bank in the first half of 2024, prompting her to adapt to the changes. At 85 years old, she was forced to switch to online banking due to the lack of physical banking options.
Maureen shared her concerns, stating, “I can’t afford to use our card machine for transactions under £5 due to fees and taxes. If people can’t access cash from the bank or ATMs, it means I lose a sale.” Her experience reflects the challenges faced by small businesses in towns like Pershore, where access to essential services is dwindling.
The Evolving Landscape of High Streets
The closure of banks, pubs, and chemists poses a broader question for communities like Pershore: how to fill the gaps left behind? Kien Tan, a senior retail adviser at PwC, highlighted the importance of these businesses in attracting foot traffic to high streets. However, he acknowledged the long-term shift towards online services, reducing the necessity for physical locations.
Mr. Tan explained, “When we do go out, we want to go to more convenient locations like retail parks, where we can do all our shopping in one go.” This shift in consumer behavior has led to a decline in traditional high street businesses, requiring a reevaluation of how these spaces are utilized and transformed.
The Future of High Streets
The closure of 55 branches by Lloyds Banking Group by the end of 2025 further underscores the trend of bank closures affecting communities across the country. The data on closures includes businesses with more than five outlets, encompassing a wide range of sectors from retail and hospitality to gyms and hairdressers.
Despite the opening of over 4,600 outlets, it was not enough to offset the closures, resulting in more than 2,000 fewer businesses compared to the previous year. This decline primarily impacts high streets, necessitating innovative approaches to revitalize these areas and meet the changing needs of consumers.
Winners and Losers in the Retail Landscape
The closure of pharmacies, including the Lloyds Pharmacy chain, and the downsizing of Boots outlets have had a significant impact on the sector. In contrast, convenience stores have proven to be resilient, with supermarkets like Morrisons and Asda opening new outlets to meet consumer demand.
The hospitality sector, particularly takeaways and restaurants, faced challenges with higher costs and weaker demand, leading to multiple closures. However, retail parks emerged as a bright spot, with chains expanding their presence and introducing new drive-through options to cater to evolving consumer preferences.
The Future of High Streets: Adapting to Change
As high streets continue to grapple with closures and shifting consumer behaviors, it is essential for communities to adapt and innovate to thrive in the changing retail landscape. The closure of banks, pubs, and chemists underscores the need for creative solutions to fill the gaps left behind and attract foot traffic to town centers.
By leveraging technology, local businesses can enhance their online presence and reach a broader customer base. Collaborative efforts between business owners, local authorities, and community members can help revitalize high streets and create vibrant, inclusive spaces that meet the diverse needs of residents.
In conclusion, the impact of high street closures on communities is significant, requiring proactive measures to address the challenges faced by small businesses and retailers. By embracing innovation and collaboration, towns like Pershore can navigate the changing retail landscape and create sustainable, thriving high streets for the future.