2022 saw the retail sector hit harder than previous years, with 17,145 shops closing and a total of 151,474 jobs being lost as a result, according to the Centre for Retail Research (CRR).
Closures grew by almost 50% on 2021, which sat at 11,449 and were higher than in 2020, when the majority of shops were forced to close doors due to COVID lockdowns.
“Major parts of the sector will probably remain significantly disadvantaged because consumers have not reverted fully to their pre-pandemic behaviour,” outlined the CRR.
It also warned: “Shopper footfall may never get back to the levels of the latter 2010s.”
Changing consumer habits, growth in online retailing and the pandemic have all taken their toll on the sector, said the CRR, which was also hit by hiked operating costs in 2022.
While 5,509 shops closed due to failure, rationalisation saw a further 11,636 shut.
"Rather than company failure, rationalisation now seems to be the main driver for closures as retailers continue to reduce their cost base at pace,” commented CRR director Joshua Bamfield.
2023 could be no easier for the sector according to IG analyst Chris Beauchamp.
READ: Can retail survive a recession in 2023 and what chains to back if it can
“Retail won’t escape the carnage if 2023 is when a hard landing arrives for the UK and global economy," he said.
“Consumer spending could nosedive, and even a drop in inflation will be of limited help.”