Connect with us

Hi, what are you looking for?

Metaverse CapitalistsMetaverse Capitalists

Business

High Street closures set to surge in 2025 as business rates burden grows

A record number of shops are expected to close their doors this year, with rising business rates cited as the final blow for many retailers.

According to fresh figures from the Centre for Retail Research, store closures could hit 17,349 in 2025, surpassing the 17,145 recorded in 2022 when pandemic support measures were scaled back.

Last year saw 13,479 shops cease trading — a 28 per cent jump on 2023 — with well-known names among the casualties. Carpetright, once operating 273 stores, went under, although rival Tapi Carpets & Floors took on 54 of its sites. The Body Shop went into administration in February, closing 82 high street outlets, while Homebase’s demise in November shuttered half of its 130 branches, the other half saved by the owners of The Range.

On average, 37 shops closed every day in 2024, creating what the Centre for Retail Research called “another brutal year for the retail sector”. Many executives fear that 2025 will be even tougher due to an imminent rise in business rates, which takes effect in April.

Chancellor Rachel Reeves has announced a reduction in business rates relief from 75 per cent to 40 per cent for retailers, leisure firms and hospitality operators. According to Altus Group, this will see the typical shop’s rates bill more than double, jumping from £3,589 to £8,613 in the next tax year.

Alex Probyn, president of property tax at Altus, warns that slashing support “after a tough year for many retailers, especially independents, is foolhardy” and highlights the increase as contrary to Labour’s manifesto pledge to reduce the overall rates burden.

Smaller businesses continue to bear the brunt of the crisis, accounting for eight in ten of last year’s closures. The Centre for Retail Research anticipates that 14,660 of the projected 17,349 closures in 2025 will come from independents.

It is not all bad news, however. The Co-op intends to buck the downward trend by opening 75 new convenience stores in 2025. Yet the most recent figures from Sensormatic suggest that footfall in British shops fell by 11.4 per cent in the final full week before Christmas, compared with the same period in 2023. Diane Wehrle, founder of retail analytics group Rendle Intelligence, attributes the sluggish festive footfall to consumers’ “lack of confidence around the economy” and stormy weather deterring people from venturing out.

Read more:
High Street closures set to surge in 2025 as business rates burden grows

    You May Also Like

    Stocks

    In this edition of StockCharts TV‘s The Final Bar, Dave shows how breadth conditions have evolved so far in August, highlights the renewed strength in the...

    Business

    In the UK, the care sector is under incredible strain, it’s good to know there are people working hard to address the issue. One...

    Business

    With the increased threat of industrial strike action looming across the UK, we consider whether a force majeure clause can strike the right chord...

    Politics

    On January 10, the French government announced plans to raise the retirement age from 62 to 64. The change would mean that after 2027,...

    Dislaimer: pinnacleofinvestment.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 metaversecapitalists.com | All Rights Reserved