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Shop openings outstrip closures

Shop openings outstrip closures

Scottish shop closures trebled during the first half of the year but a surge in openings more than offset the number of casualties, a report says.

According to professional services firm PwC, an average of three shops closed every day in the first six months of 2013.

Scotland’s retail sector suffered a total of 564 shop shutdowns in the period, nearly three times the number seen a year earlier.

But the rate of stores opening almost quadrupled, meaning a net gain of 102 north of the border.

A breakdown of the type of businesses opening and shutting highlights the changing nature of Scotland’s fast-changing economy in a challenging economic climate.

While fashion, jewellery, shoe and photography shops have been among the biggest losers, there are now more hairdressers, fast food outlets, discount stores, bookmakers and cheque cashing centres.

PwC’s report is based on research carried out by the Local Data Company in eight Scottish city and town centres.

Aberdeen experienced a net gain of 17 stores, while Edinburgh, Glasgow, and Paisley also saw growth in the total number of shops.

Ayr, Dundee, Falkirk and Perth all suffered net losses as continuing economic gloom hit their high streets.

Caroline Roxburgh, head of private business at PwC in Scotland, said: “The Scottish retail sector has been able to tell a much more positive story in 2013 than in previous years, with reports emerging throughout the summer of year-on-year increases in retail sale figures.

“The challenge will be for the sector to build on its growing confidence and sustain this performance into 2014.

“What’s also been interesting this year is the continuing transformation of our traditional retailers and stores as they respond to the changing behaviour of their digitally-enabled customers.”

She added: “As we look to the new year, the high street needs to continue to transform itself to be relevant to the new normal shopping behaviour in the same way that retailers are being forced to. Hopefully this data shows a step in the right direction.”

PwC’s report highlights 3,366 shop closures throughout the UK during the first half of 2013, more than 18 a day, compared with 3,157 openings – a net reduction of 209 shops.