UK Retail Closures Expected to Accelerate in 2025 Amid Rising Costs

The UK high street faces renewed pressures as business rates and payroll costs increase, with long-term decline in physical retail continuing.

In 2024, the UK saw 12,804 retail closures, a net loss of 3,802 stores, marking an improvement from 2023 but still reflecting ongoing challenges.
Convenience stores and coffee shops were among the few growth areas, with 171 net new convenience stores and 105 coffee shops opening in 2024.
Bank closures surpassed 6,000 over the past nine years, with further reductions planned for 2025, raising concerns about impacts on local communities.
Higher payroll costs and business rates, introduced in April 2025, are expected to increase the pace of closures after a slowdown in 2024.
Consumer confidence stabilized in March 2025 after record lows in February, but spending remains cautious, with food and essentials driving modest growth.