MORE than five shops on Scotland’s high streets are closing every week, according to new analysis.
In eight Scottish cities and towns last year, the number of stores fell by 119 – with 265 closures offset by 146 new openings.
The 2018 figures follow a record net loss of 148 in the previous year, the PwC study shows.
All eight locations studied in the research saw shop closures outnumber openings.
Lisa Hooker, consumer markets leader at PwC, described 2018 as a “turbulent year”, pointing to footfall decline, the impact of online shopping, rising costs and Brexit uncertainty among shoppers.
She said: “We know that the high street is seen as a barometer for wider economic issues and there are signs that Brexit is affecting how we spend.
“Two in five consumers tell us Brexit will affect their spending this year, with half of those saying they’ll spend less, and a third saying they’re postponing big-ticket purchases.”
Both Edinburgh and Glasgow ended 2018 with 32 fewer shops, with 68 and 89 closures respectively.
In Aberdeen, 15 new shops opened but 42 closed, while Paisley suffered the greatest impact as a proportion of its total shop numbers, down nine to 114.
Perth had the least closures with just seven, though the town saw four new stores open over the year.
Across Britain, there was a record net loss of 2481 stores disappearing from the biggest 500 high streets last year, with 3372 shops opening and 5853 shutting.
Mark Addley, head of business recovery services for PwC in Scotland, said the challenge was that the reduction in stores was coupled with store openings at nearly half the total seen five years ago.
He continued: “We have already seen casualties in 2019 and we fully expect to see more, with retail companies facing an uphill battle to survive, never mind thrive.
“To be in the best possible shape to get through this, retailers must focus on ensuring they have the right proposition, and the investment required to deliver it.
“In the immediate term, retailers need full-scale solutions which sustainably cut costs and allow for new money investment to bridge the lag between the cost of a restructuring and long-term performance improvements, all while fully addressing the needs of their customers.”
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