Last year, the fashion retail industry in the UK suffered a devastating blow due to the ongoing pandemic. According to a report by the Local Data Company (LDC), over 11,000 stores vanished from high streets, highlighting the significant impact on not only fashion retail but also on high streets, shopping centers, and retail parks across the country. Unfortunately, it is predicted that an additional 18,000 stores may close this year.
Among the hardest-hit were fashion and clothing stores, which led the decline in the retail sector. The loss of commuters and tourists also dealt a severe blow to city centers, resulting in a staggering 2.5 percentage point increase in unit vacancies, reaching 16.1% – the highest among all types of locations.
The LDC report revealed that a total of 9,877 chain stores and 1,442 independent retail, restaurant, and leisure premises permanently closed their doors in England, Wales, and Scotland in 2020. This comprehensive analysis covered 680,000 retail units in 3,000 shopping locations.
Despite the grim situation, there were some positive developments. Beauty salons emerged as one of the fastest-growing sectors, and independent and village retailers fared relatively better compared to chain stores and city centers. The report credited government support, including grants, furlough payments, business rates relief, and a moratorium on evictions, for slowing down the pace of independent retail closures compared to 2019. These measures helped mitigate the extent of closures, which was lower than initially predicted.
However, it is crucial to note that the report’s numbers do not fully reflect the true impact of the pandemic. Many temporarily closed outlets during lockdowns were not accounted for, and it remains uncertain whether these closures will be permanent or if businesses will be able to recover and reopen as restrictions ease in the coming months.
The report also predicts that major retail groups, such as Debenhams, Topshop, and Dorothy Perkins, facing collapse, could result in up to 18,000 more stores, restaurants, and leisure outlets becoming vacant. This poses further challenges for town centers that already struggle to reduce their reliance on retail. The report highlights the difficulties in finding new occupants for closed department stores, with only a quarter successfully finding new tenants without needing to be reorganized into smaller units. Approximately 30% of former department stores were either demolished or divided into smaller units.
Furthermore, the report raises concerns that the end of government support will lead to even more dire consequences for the retail and leisure markets. As financial aid gradually withdraws, a significant portion of the market, which has been “frozen in time” since the start of the pandemic, may face further closures and increased vacancy rates. Lucy Stainton, head of retail at LDC, warns that the situation is likely to worsen throughout 2021 and 2022 before stabilizing.
In summary, the COVID-19 pandemic has severely impacted the fashion retail industry in the UK, resulting in the disappearance of thousands of stores from high streets. The report emphasizes the urgent need for comprehensive support and strategic planning to revitalize the retail sector and reshape town centers to be less dependent on traditional retail.
For more information on the impact of the pandemic on the UK fashion retail industry, you may find the following links useful:
1. BBC: UK retail job losses worst in 25 years
2. Retail Gazette: UK retail parks gaining new lease of life post-pandemic
