Retail Rumble: 2023’s Shutter‑Down Story
While shoppers still tried to snag a bargain, more than 10,000 retailers closed their doors for the last time this year, and nearly 120,000 people saw their jobs vanish. The sector, already jostled by high energy bills and fewer foot traffic, faced its biggest tax hike in thirty‑three years as the government slapped a 6.7% increase on “large” business rates.
Key Numbers from the Centre for Retail Research
- 119,405 jobs lost nationwide.
- 10,494 store closures.
- Store closures down by 38.8% versus 2022.
- Redundancies down by 21.3% compared to the previous year.
Despite the downward trend, 2022 already set a grim record for closures since the 2008 crisis, and this year still feels lived up to the feeling that the sector is on the brink.
Why the Store‑Shutting Blues Persist
Professor Joshua Bamfield, who has been dissecting retail trends for a quarter‑century, says the apparent “improvement” is more a silver lining than a cure. In his words:
“The cost‑of‑living squeeze, ever‑rise inflation, and hammer‑on interest rates have clipped consumer budgets. Retailers are grappling with rising rent and energy costs, staffing shortages, and dwindling demand, making it hard to rebuild profit after the pandemic‑era closures.”
Tax Trouble for Big‑Name Retailers
Altus Group’s latest forecast warns that 43,160 large premises in England—those with a rateable value over £51,000—will face a 6.7% jump in business rates this April, topping the market at £308.96 million in extra tax for the 2024/25 fiscal year.
That’s the biggest year‑on‑year climb for the standard business rates multiplier since 1991, and no wonder big boxes are feeling the squeeze.
Retail Crash‑Cart: Who’s Down?
While the pandemic did leave a few casualty piles, many of 2023’s most high‑profile failures—Debenhams, Arcadia, Jessops, and M&Co.—had already been on a decline path. Yet fresh names still popped out of the ruin column:
- Wilko (400 store shutdowns, 12,000 jobs lost) – the greatest icon collapse since Woolworths in the 2008 crisis.
- Victoria Plum
- Tile Giant
- UK Flooring Direct
- Planet Organic
The Centre notes that most closures and job cuts in 2023 stemmed from internal cost‑cutting moves rather than outright business failures—an echo of the 2022 pattern.
Takeaway
Retail’s future feels like a game of Jenga: one misstep and the whole tower could wobble. For shoppers, it means fewer high‑street options; for workers, a tighter job market.
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