Research shows highest number of shops closing in five years at the end of a dire year for UK retail
Image above: Chiswick High Rd; photograph Anna Kunst
Big jump in the number of shops closing
Last year saw a big jump in the number of shops closing, according to the Centre for Retail Research, an independent research body which provides analysis of retail sector trends.
More than 17,000 closed down – the highest number for five years.
In Chiswick the situation for retailers appears to be even worse than the national average. The area which includes Chiswick High Road going into Hammersmith lost 13 shops over a two-year period – a decrease of 4%, compared with the national figure of 3%.
The BBC’s Data Journalism team have created a postcode checker so readers can see how their area is faring in comparison with the national average. It is not possible to isolate just the Chiswick poscode using it, so any search using a W4 postcode includes parts of Acton, Hammersmith, Brentford or Kew, and the results vary depending which postcode you enter.
I put in a post code for the middle of Chiswick High Rd, which brought up an area which included Chiswick High Rd and King Street, Devonshire Rd and Turnham Green Terrace, Acton Lane, The Vale, Askew Road, Warple Way and Fauconberg Road.
It showed in March 2020 there were 343 retail shops. There were 13 fewer in March 2022 – a decrease of 4%. In Great Britain overall during this period, there was a 3% decrease in retail shops.
Image above: BBC’s postcode checker showing Chiswick High Rd
Eating and drinking businesses have increased
The number of eating and drinking businesses had increased, but the increase in our area was only half the national average.
In March 2020, there were 241 eating and drinking businesses. There were 5 more in March 2022 – an increase of 2%. In Great Britain overall during this period, there was a 4% increase in eating and drinking businesses.
Breaking the figures down further, the trend locally showed a 7% increase in beauty services, a 9% increase in pubs and bars, an 8% increase in fast food outlets and a 3% increase in restaurants.
The figures showed a 7% decrease in clothes shops and a 5% decrease in cafes.
Image above: Sofa Workshop, Chiswick High Road
Trend expected to continue in 2023
Among the shops to have closed in Chiswick is the Sofa Workshop, whose large premises in the centre of Chiswick High Rd is still standing empty after as the company went into administration in March.
READ ALSO: Sofa Workshop Ltd goes into administration
The site which used to be Kitchen and Pantry, next to Waterstones, has stood empty for several years since the company went into liquidation. There are signs of life finally now, after Homayoun Fahimipour, the proprietor of nearby Nikki’s Bakery, put in a planning application to turn it into a new restaurant, to be called Mali’s.
Outsider Tart on the corner of Chiswick High Rd and Chiswick Lane is also still standing empty after it was was repossessed by the landlord last year when the tenants failed to pay their rent. The lease has now been taken over by the owners of My Place, a cafe-bar based in Soho.
READ ALSO: New cafe-bar set to open in old Outsider Tart premises
Image above: Outsider Tart
Retail closures last year nearly 50% higher than in 2021
The research by the Centre for Retail Research showed total closures nationally were nearly 50% higher than in 2021.
At that time businesses were still being protected to some extent through government support and the furlough scheme, which allowed shops to keep their staff.
In 2022, just when retailers really needed things to pick up after the pandemic, the retail sector was hit by price rises which meant shoppers reined in their spending and at the same time costs for retailers also rose, with steep increases in energy and wage bills in particular.
The CRR said shops were closing at a rate of 47 per day in 2022. Large retail chains accounted for 6,055 shop closures while 11,090 shops were closed by independents.
Image above: Dominic Hughes, owner of Pot Pourri, with a collegue.
Businesses ‘rationalising’
Only around a third of closures were due to insolvencies, according to the CRR. Nearly a third of the closures were branches of chains which were closing some of their sites to save money and rationalise the business.
More than a third of closures were independent shops which decided to wind up their business, also classed as rationalisation.
Florist Pot Pourri moved out of Chiswick because of the comparatively high costs. Owner Dominic Hughes decided to give up his premises in Chiswick High Road because Kew was cheaper, saying he could no longer afford a shop in Chiswick and siting the impact of Brexit on his business.
Restaurateur Michael Nadra also moved out of Chiswick in 2022 to focus on his other restaurant in Hampstead. He loved being in Chiswick, he told The Chiswick Calendar. His restaurant in Chiswick was his first and he regretted having to close, but given the problems the hospitality industry is facing with finding good, reliable, experienced staff, he decided he should concentrate on just one restaurant.
“Rather than company failure, rationalisation now seems to be the main driver for closures as retailers continue to reduce their cost base at pace,” said CRR director Joshua Bamfield.
He added that he expected the trend to continue in 2023, and that “a few big hitters may well fail too”.
Read more stories on The Chiswick Calendar
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Read more stories on The Chiswick Calendar
See all the latest stories: Chiswick Calendar News & Features
Support The Chiswick Calendar
The Chiswick Calendar CIC is a community resource. Please support us by buying us the equivalent of a monthly cup of coffee (or more, if you insist). Click here to support us.We publish a weekly newsletter and update the website with local news and information daily. We are editorially independent.
To subscribe to the weekly newsletter, go here.
