HIGH STREET names are deserting Scotland’s major town and city centres at the rate of one store a day, new research has shown.
The study by professional services firm PwC also shows pound shops, pawnbrokers and cheque cashers, charity stores and bookmakers are amongst the few chains bucking the declining retail trend.
The analysis, completed alongside research firm The Local Data Company, reveals multiple retailers closed an average of 20 stores a day across the UK last year a total of more than 7,000 shops, though new openings took the net reduction across the UK to 1,779.
Closures rose to 353 in the year across Scotland, while openings fell to 276 leading to a net reduction of 77 stores by chains across the eight Scottish town and cities surveyed.
Dundee saw 34 closures and 23 openings by chains, resulting in a net reduction of 11 stores, while Perth experienced 20 closures and 19 new starts, meaning a net fall of just one.
There was no net change in Aberdeen, while retailing totals in Ayr fell by two. Edinburgh, Falkirk, Glasgow and Paisley all saw reductions in the number of multiple outlets.
Administration-hit stores like Clinton Cards, JJB Sports and Game all fell, with clothes chain Peacocks also among those that collapsed.
Other closures included health food shops, jewellers, travel agents, recruitment agencies and banks, the survey said.
PwC head of business recovery in Scotland Bruce Cartwright said the figures demonstrated the “ongoing economic challenge” facing high streets.
However, he sought to cushion the blow, stressing many of the closures had been on the cards for some time as retailers realigned their offer to customers.
He added he was surprised at the success of attracting new tenants, particularly convenience food stores.
“While the data is a little disappointing, it is perhaps important to acknowledge a number of businesses with closures had anticipated these for some time,” Mr Cartwright said.
“Retailers generally shared two problems too many stores and too little multi-channel activity while some had failed to deal with their underlying issues, hiding behind light-touch restructuring processes, especially company voluntary arrangements.
“What is pleasantly surprising, however, is the speed at which some of these stores have been picked up, by value and grocery stores in particular.
“Much of the success in attracting new investors to these locations is down to the economic development teams within local authorities.”
However, Mr Cartwright also warned pressure would continue to ramp up on retailers.
“Many retailers will have been banking on a bumper Christmas period and in the end, the reality simply didn’t match the expectation,” he said.
“But there is room for positivity in 2013. As we have seen in the past, good businesses with good operating models and good people don’t fail.”
Matthew Hopkinson, director of The Local Data Company, said the net reduction in Britain’s multiple retail estate amounted to space equivalent to 131 football pitches.
He warned the end of 2012 and first few weeks of 2013 had been the “most dramatic period on record” with yet more firms, including Blockbuster, HMV, Republic and Jessops, all tumbling into administration since the turn of the year.
business@thecourier.co.uk