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  • 21/05/13
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Preston among worst hit high streets

Empty shops on Friargate, Preston

Empty shops on Friargate, Preston

 

Preston is among the worst hit high streets in Britain for shop closures, according to a new study.

The study by research group The Local Data Company show 31 shops closed in the city during 2011 making it among the worst-hit in the country.

It also showed Manchester, Bristol, Croydon, Sheffield, Derby and Leicester among badly-hit centres.

The national figures show nationwide retailers closed 32 stores a day in July and August, up from 20 a day in the first six months of 2012 as Britain’s high street suffers amid a consumer spending slump.

High profile administrations of retailers including Game, Peacocks and Clintons saw the number of town centre chain store closures soar to 953 in the first half on a net basis - those closing less those opening.

This compared with 174 throughout the whole of 2011, according to the study of 500 town centres by the Local Data Company for PricewaterhouseCoopers (PwC).

The North West was the fourth worst affected region in the country with 113 net closures during the period.

The study, published with accountants Pricewaterhousecoopers (PwC) on Thursday, said there were 301 closures in the region and 188 openings.

Mike Jervis, PwC insolvency partner and retail specialist, said many retailers are failing because they are tied into long onerous leases that they can no longer afford.

He said they need to work with landlords to help stem the flow of company failures.

“Where over-expansion has already taken place, retailers need to face that reality and formulate a strategic plan in partnership with landlords, not in confrontation with them,” he added.

But the rise of discount shops, convenience outlets and charity stores continued across UK high streets in the first half of the year.

There were 7% more discount stores in the first six months on a net basis and 11% more payday loan outlets.

The research also showed there were 11% more bureaux de change, 5% more convenience food stores, 8% more pawnbrokers and another 1% of charity shops.

 

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