Will your business survive on the main street?

The state of Britain’s high streets continues to deteriorate.

With around 14 stores closing every day in 2023 alone, the future of the high street does not look bright.

Meanwhile, London has been deemed the least attractive for companies planning to open brick-and-mortar stores.

The decline of the high street – brands in trouble

By September 2024, a total of 6,945 stores have closed this year, which equates to 38 stores per day.

Pharmacies, pubs and banks have been hit hardest, according to research from accountancy firm PwC. Brands including Boots and Wetherspoons also announced further store closures earlier this year.

Beauty and hygiene retailer Boots has announced it is closing 300 stores as part of an austerity programme – aimed at saving a total of around £618 million.

Meanwhile, JD Wetherspoons has announced it will put a number of its UK sites up for sale, with 41 of them now officially closed. TGI Fridays has also recently he fell into managementselling all 87 of its restaurants. Meanwhile, bank branches including Lloyds, Halifax and Bank of Scotland are also set to close 292 stores between 2024 and 2025.

Other famous brands including Cosmetics store, Ted Baker and LloydsPharmacy filed for personal bankruptcy this year.

The Best (and Worst) Places to Open a Brick-and-Mortar Store

With inflation rising and the cost of living crisis continuing, opening a brick-and-mortar store can feel like walking a tightrope. But taking your brand to the high street isn’t entirely out of the question.

London is the least attractive place for new businesses

It should come as no surprise that the capital tops the list of the most expensive cities to set up shop in. Even the city’s famous Oxford Street is struggling, losing out to online shopping following COVID-19 lockdown measures.

“Oxford Street was once the jewel in the crown of the UK’s retail sector, but there is no doubt that it has suffered greatly over the last decade,” said London Mayor Sadiq Khan. “Urgent action is needed to give the country’s most famous shopping street a new lease of life.”

Research conducted by Capital on tap It revealed that rent costs in London were £3.02 per square foot. Buying a property can cost businesses £416.98 per square foot, while a handyman costs around £39 per hour.

Plymouth, Newport and Nottingham were considered the most viable locations

London may be out of our reach for now, but Plymouth and Newport have proven to be prime locations to open a brick-and-mortar store.

For example, the average monthly rent per square foot is just 76p in Plymouth and 82p in Newport. In addition, handyman services and basic utilities (such as mobile phone and internet plans) are all under £30 a month.

On the other hand, Nottingham had an unemployment rate of 6.5%, making it an attractive choice for hiring new workers.

Popular brands in major cities that are successful

It’s not that bad though.

While the recent closures may seem grim, the reality is that some high street businesses are doing exceptionally well.

Itsu plans to open 80 new restaurants

In July 2024, Asian-style restaurant Itsu announced plans to open 80 new restaurants across the UK. This will include expansion into major city centres to capitalise on shoppers, commuters, tourists and students.

As of September 2024, the company recorded a record full year revenue of £161 millionwhile franchise sales rose from £540,000 to £635,000 in 2023.

The company attributes the increase in sales to people back to the office in connection with COVID-19.

“2023 saw a shift in Itsu’s retail landscape; transportation hubs saw greater growth in customer traffic, and the city returned to pre-COVID-19 sales levels by moving from a three-day to a four-day workweek,” Itsu said in a statement. “After a period of more suburban store openings, as post-COVID-19 retail patterns became more apparent, confidence in opening large, high-rent, well-known restaurants has returned.

Primark still dominates

Primark products that can’t be bought online certainly raise some concerns, but the popular clothing retailer is holding strong. Even after Loss of £1 billion After closing, the company remained at its current position, with sales only in stationary stores.

The company introduced a click and collect service in 2022 and recently announced the service would be rolled out to a further 54 stores, including in Derby, Birmingham and Corby.

This new service brought the company a sharp increase in profits. Sales increased by 46% to £508mwith a margin return of 11.3%.

M&S announces store refurbishment plans

Long-standing retailer Marks & Spencer (M&S) has revealed plans expand your 24/7 storesincluding 10 new stores and 50 refurbishments. By the end of the year, the company plans to operate in more than 40 train stations, hospitals and airports across the UK.

Alex Freudmann, Managing Director of Food at M&S, said: “Our refurbishment programme is about ensuring we have the right stores in the right place and in the right space, and that includes our convenience stores.”

“The new format of our convenience store refurbishment maximises these small spaces to deliver the M&S Foodhall experience for the missions our customers shop for when they are on the move,” he added. “By refurbishing and developing our convenience stores, we will continue to deliver to our customers however and whenever they want to shop with us.”

The company’s revenue increased by £11.9 billion to £13 billion in the 52 weeks to the end of March 2024 – an increase of 9.3% compared to the previous year.

Keep up to date with the latest high street casualties with our list British brands that went bankrupt after COVID pandemic.