A record number of stores are expected to close their doors this year, with rising business rates cited as the latest blow for many retailers.
According to new figures from the Center for Retail Research, store closures could reach 17,349 in 2025, surpassing the 17,145 recorded in 2022 when pandemic support measures were scaled back.
Last year saw 13,479 stores go out of business – a 28 per cent increase on 2023 – and well-known names were among the victims. Carpetright, which operated 273 stores, has gone bankrupt, although rival Tapi Carpets & Floors has taken over 54 of its locations. The Body Shop went into administration in February, closing 82 high street outlets, while Homebase’s demise in November saw half of its 130 branches closed, with the other half bailed out by the owners of The Range.
On average, 37 stores closed daily in 2024, creating what the Center for Retail Research described as “another brutal year for the retail sector.” Many executives fear 2025 will be even more difficult due to the impending rise in business rates, which will take effect in April.
Councilor Rachel Reeves has announced a reduction in business rates from 75 per cent to 40 per cent for retailers, leisure companies and hospitality operators. According to Altus Group, this would more than double a typical store’s rates bill, jumping from £3,589 to £8,613 in the following tax year.
Alex Probyn, head of property tax at Altus, warns that cutting support “after a difficult year for many retailers, especially independents, is reckless” and highlights the increase as inconsistent with Labour’s manifesto pledge to reduce the overall interest rate burden. .
Small businesses continue to bear the brunt of the crisis, accounting for eight out of ten closures last year. The Center for Retail Research predicts that 14,660 of the 17,349 closings expected in 2025 will come from independents.
However, it’s not all bad news. The Co-op intends to buck this downward trend by opening 75 new convenience stores in 2025. However, the latest figures from Sensormatic show footfall in UK stores fell by 11.4 per cent in the last full week before Christmas, compared to the same period. . In 2023. Diane Wehrle, founder of retail analytics group Rendle Intelligence, attributes the slowdown in festive footfall to “consumers’ lack of confidence in the economy” and inclement weather. Prevent people from going out.