Can Your Enterprise Survive The Excessive Road? 

The state of the UK’s excessive avenue continues to decrease.

With round 14 store closures reported every single day in 2023 alone, the way forward for the excessive avenue isn’t wanting promising.

In the meantime, London was reported because the least viable for companies seeking to open bodily shops.

The decline of the excessive avenue – manufacturers which are in bother

As of September 2024, a complete of 6,945 have closed to this point this yr – equal to 38 outlets per day.

In line with analysis by accountancy agency PwC, chemists, pubs and banks have been hit the toughest. Manufacturers like Boots and Wetherspoons have additionally introduced additional retailer closures earlier this yr. 

Well being and wonder retailer Boots introduced that it was closing 300 shops as a part of a cost-saving program – aiming to save lots of round £618 million altogether. 

In the meantime, JD Wetherspoons introduced it will be placing a number of of its UK websites up on the market, with 41 formally closed. TGI Fridays additionally not too long ago fell into administration, promoting off all 87 of its restaurant areas. In the meantime, financial institution branches together with Lloyds, Halifax and Financial institution of Scotland are additionally set to shut 292 shops between 2024 and 2025.

Different well-known manufacturers, together with The Physique Store, Ted Baker and LloydsPharmacy all filed for administration this yr.

The most effective (and worst) locations to open a bodily retailer

With inflation on the rise and the price of dwelling disaster nonetheless ongoing, opening a brick-and-mortar retailer will be like strolling a tightrope. However introducing your model on the excessive avenue isn’t solely out of the query.

London is the least viable for brand new companies

It shouldn’t come as a shock that the capital metropolis tops the listing for the costliest metropolis to arrange store. Even the well-known Oxford Road has been struggling, dropping out to on-line procuring following the COVID-19 lockdown measures.

“Oxford Road was as soon as the jewel within the crown of Britain’s retail sector, however there’s little doubt that it has suffered vastly over the previous decade,” The Mayor of London, Sadiq Khan, said. “Pressing motion is required to provide the nation’s most well-known excessive avenue a brand new lease of life.”

Analysis by Capital On Faucet revealed that London rental prices had been at £3.02 per sq. foot. Buying property can set companies again £416.98 per sq. foot, whereas handyman providers price round £39 an hour. 

Plymouth, Newport and Nottingham revealed as essentially the most viable areas

London could be out of attain for now, however Plymouth and Newport had been discovered to be one of the best locations to open a bodily store. 

For instance, the typical month-to-month rental price per sq. foot is simply 76p in Plymouth and 82p in Newport. Moreover, prices for handyman providers and important utilities (eg cellular plans and web) are below £30 per 30 days. 

Then again, Nottingham was reported to have an unemployment fee of 6.5%, making it an interesting selection for hiring new staff.

Excessive avenue manufacturers which are succeeding

It’s not all doom and gloom although.

Whereas these current closures might sound grim, there are literally some companies which are performing exceptionally properly on the excessive avenue.

Itsu goals to open 80 new eating places

In July 2024, Asian-style restaurant Itsu introduced plans to open 80 new eating places throughout the UK. It will embody increasing to main metropolis centres to capitalise on customers, commuters, vacationers and college students.

As of September 2024, the corporate has reported a file full-year income of £161 million, whereas its franchise gross sales have grown from £540,000 to £635,000 in 2023.

The corporate attributes its progress in gross sales figures to folks’s return to workplace following COVID-19.

“Itsu retail noticed a shift in buying and selling in 2023; transport hubs confirmed greater buyer progress whereas town resumed pre-COVID gross sales ranges, shifting from a three-day to a four-day week,” Itsu stated in a press release. “Following a interval of opening extra outlets in suburban areas, the boldness to open giant, distinguished, higher-rent eating places returned as post-COVID buying and selling patterns grew to become clearer.”

Primark continues to dominate

Primark merchandise not being available for purchase on-line positively raises some eyebrows, however the fashionable style retailer is standing sturdy. Even after its £1 billion loss following lockdown, the corporate stood its floor on remaining in-store solely.

It launched its click-and-collect service in 2022 and not too long ago introduced an extra 54 shops to launch this service, together with Derby, Birmingham and Corby.

This new service noticed earnings for the corporate skyrocket. Gross sales elevated by 46% to £508 million, with a margin restoration of 11.3%.

M&S proclaims retailer renewal plans

Lengthy-time retailer Marks & Spencer (M&S) unveiled plans to develop its comfort shops, together with 10 new shops and 50 renewals. By the tip of the yr, the corporate plans to function in over 40 UK prepare stations, hospitals, and airports.

Alex Freudmann, Meals Managing Director at M&S, said: “Our renewal programme is all about ensuring we’ve got the suitable shops in the suitable place and with the suitable house and this is applicable to our comfort shops as properly.”

“The brand new renewal format for our comfort shops maximises these small areas to ship the M&S Foodhall expertise for the missions our clients are purchasing for as they journey,” he added. “By renewing and rising our comfort property, we’ll proceed to ship for our clients, nonetheless, at any time when and no matter they wish to store with us.”

The corporate’s income rose from £11.9 billion to £13 billion within the 52 weeks as much as the tip of March 2024 – a 9.3% enhance from the earlier yr.

Maintain updated on the newest excessive avenue casualties with our listing of UK manufacturers which have gone into administration since COVID.