Britain is facing hundreds of shop closures every month in the bleak aftermath of time being called on dozens of iconic UK branches at Body Shop, Homebase and Carpetright.
Shop closures surged by more than a quarter last year as 13,479 put up the shutters with small independents worst hit, according to new research.
And retail experts have warned that “worse is set to come”, with forecasts suggesting that the number of shops being closed will jump by almost a third this year.
The Centre for Retail Research (CRR) expects 17,350 stores to close over the next 12 months, which equates to an average of almost 48 per day.
The centre’s director, Joshua Bamfield, said while the closure numbers were not as bad as those in 2020 and 2022 “they are still disconcerting”.
Shop closures suck the lifeblood out of many town centres, creating Ghost Towns characterised by rows of boarded up shops.
Carpetright, which had 273 stores, was among those that collapsed last year, although 54 of its shops were taken over by Tapi Carpets & Floors, a rival.
The Body Shop fell into administration in February which resulted in 82 of its high street shops being closed, while Homebase, which had 130 shops across the country, went bust in November. About half of its stores were bought by the group behind The Range.
The alarming closure figures were released amid growing concerns over an upcoming surge in costs faced by retailers following Rachel Reeves’s Budget.
The British Retail Consortium (BRC) has said the Chancellor’s changes to employer National Insurance contributions – to increase the headline rate from 13.8 percent to 15 percent and to lower the threshold at which companies start to pay the tax – will cost retailers £2.3 billion.
On top of this, a 6.7 percent increase to the minimum wage will add more than £2.7bn to wage bills, the BRC said.
In a third blow, high street stores are facing a jump in property taxes as business rate discounts are cut back. According to real estate firm Altus Group, the rates bill for the average shop will surge from £3,589 to £8,613 for 2025-26.
Alex Probyn, of Altus Group, said it was “foolhardy” to scale back targeted relief which was designed to help smaller retailers.
He said: “Despite (the Labour manifesto’s) recognition of the undue burden business rates place on our high streets, that burden will be significantly increased.”
The CRR said that some 14,660 of the stores predicted to close this year will be smaller independent retailers. This would be around 90 percent higher than the 7,793 in 2024.
A spokesman for the Treasury said: “We delivered a once-in-a-parliament Budget to wipe the slate clean and deliver the stability businesses so desperately need.
“Without our action, business rates relief for retail, hospitality and leisure would have ended in April this year.
“Instead, we are extending 40 percent relief for 250,000 properties and introducing a new permanently lower business rate in 2026, while more than half of employers will either see a cut or no change in their National Insurance bills.”
