Region’s retail sector shows signs of recovery says report

A new report launched by PwC found that last year the region saw the lowest number of store closures since 2017.

Created in association with the Local Data Company, the twice-yearly research tracks over 200,000 outlets in over 3,500 locations to gain a picture of the changing landscape of high streets, retail parks, shopping centres and standalone outlets.

Throughout 2022, 493 shops opened across the East Midlands, compared to 702 closures, creating a net decline of 209 (-1.4%), the lowest since 2017.

It is a significant improvement on 2021, when the East Midlands saw 528 store openings and 1,146 closures, a net change of 618.

Overall, the East Midlands performed third best out of the regions across the UK, following the South East and Scotland in first and second.

The West Midlands was the worst performing region overall, with a net closure rate of -2.3%, below the national average of -1.4%.

Sarah Phillips, PwC partner and consumer markets leader for the Midlands, said: “It’s pleasing to see the East Midlands retail and hospitality sectors experiencing slower rates of closure and the difference between openings and closures narrowing.

“We’re seeing recovery through a bounce back in a variety of sectors, most notably takeaways, convenience stores, DIY and pet stores, helped by pandemic trends.

“Retail parks and shopping centres are holding strong, and the East Midlands benefits from multiple strong locations.

“High Streets are also recovering well and we’re seeing more innovative store openings, embracing technology and creating experiences for younger consumers.

“There is a trend of combining multiple offerings and better utilising space, mixing fashion with lifestyle, beauty and hospitality.

“There are challenges ahead with a potential recession and the cost-of-living crisis continuing.

“However, we have seen how quickly the tide can change and there is positive growth for retail across the UK, as more people return to work and offices, boosting the high street.”