The UK’s retail industry suffered its worst year in 2022 in at least five years as more shops closed their doors for good.

And Industry groups are warning 2023 will present similar challenges for small businesses.

A new analysis from The Centre for Retail Research (CRR) shows 47 shops in the UK closed permanently every day in 2022.

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The closures are largely because retailers struggled with energy costs, staff costs, and rising inflation.

The data found that 17,145 shops on high streets and other locations shut down in 2022. 

This jumped by almost 50 percent from 2021, when 11,449 stores closed.

Just over 5,500 shops went out of business as they no longer were financially viable.

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More than 11,600 branches of larger businesses were also closed due to a larger chain wanting to reduce its expenses.

Joules, McColl’s, and TM Lewin were among other chains that went under.

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CRR director, Prof Joshua Bamfield, said: “Rather than company failure, rationalisation now seems to be the main driver for closures as retailers continue to reduce their cost base at pace.”

He expects this trend to continue in 2023 but added: “A few big hitters may well fail, too.”

The centre reported that the UK lost over 151,000 retail jobs last year, including from online retailers, a rise of more than 45,000 from the year before.

Source: Retail Gazette

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