Scotland’s high streets reach ‘point of greater stability’ as store closure rate eases

New figures show that 613 chain shops opened their doors in 2024, but this came against 860 closures, leading to a net reduction of 247 across the country’s principal high streets, shopping centres and retail parks. The reduction, which equates to the loss of 1.6 per cent of all multiple stores, is said to reflect a national trend of a slowing rate of closures, with convenience, grocery and value retail among the strongest performers across the UK.

PwC’s latest research into Scotland’s retail and leisure landscape paints a picture of cautious stability. The net change, which equates to around five fewer shops per week, marks a slowdown compared to previous years. In 2023, Scotland saw a net reduction of 2.1 per cent, and 1.4 per cent in 2022 - a year which marked the slowest decline since 2016.

The accountancy giant’s bi-annual report, using proprietary data from Green Street, formerly Local Data Company, tracks more than 200,000 chain outlets in some 3,500 UK locations to gain a picture of the changing landscape of retail chains that operate more than five stores.

PwC noted that the 1.6 per cent net closure rate in Scotland compares to 1.8 per cent in Britain overall, with only Wales (1.4 per cent) and the north west of England (1.5 per cent) performing more strongly. The West Midlands, meanwhile, joined Scotland on 1.6 per cent.

Ross Marshall, partner at PwC Scotland, said: “Our latest findings highlight a mixed picture for Scotland’s retail market. While closures continue to outpace openings, the slowdown in net decline suggests that we could be reaching a point of greater stability in the sector.

“High streets continue to adapt, and recently we’ve seen plans to transform key thoroughfares like Sauchiehall Street in Glasgow and Princes Street in Edinburgh as local authorities and businesses come together to meet the needs of a changing industry.

“Challenges remain of course, from persistent cost pressures to shifting consumer expectations. Therefore, strategic investment in technology, store formats, and customer engagement will be critical to long-term success.”

More than three-quarters of Scotland’s chain stores (78 per cent) are on the country’s high streets, however the rate of closures here is higher. In Scotland, there was a net loss of 204 stores across high streets (466 openings against 670 closures), representing a 1.7 per cent decline. Encouragingly, however, this is a slower rate of decline than the UK-wide high street total of 2.4 per cent.

Experts said high streets continue to feel the impact of shifting dynamics in the sector, with fewer footfall-driving stores, such as banks and large-format retailers, leading to challenges in attracting “consistent consumer visits”.

Jason Higgs, restructuring partner at PwC Scotland, added: “Store closures may have eased in 2024, but retailers continue to face a number of challenges. While household finances are improving slightly, consumer confidence remains muted.”

Tax troubles round corner for Scottish retailers and shoppers as store takings wane