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Pet shops remain resilient on the high street

Rachel WoodBy Rachel WoodSeptember 16, 20193 Mins Read
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Pet shops are bucking the trend of high street shop closures and are one of only three types of stores to make net gains.

With 144 openings against 140 closures, pet shops on Britain’s top 500 high streets recorded a net increase of four shops.

Figures from market researcher Local Data Company and accountancy firm PwC revealed that 16 high-street stores closed each day (or 2,868 stores) in the first half of 2019, many of those being retail chain outlets such as the Arcadia group and Debenhams.

Biggest losers were clothes and fashion shops, followed by pubs and bars, restaurants, estate agents and charity shops.

Against those 16 closures a day, nine shops opened each day (or 1,634 stores), which means a net decline of 1,234 stores – the highest since analysis by PwC and the Local Data Company began in 2010.  Of these new businesses, they said the majority are franchise owners and independents.

RISK

Research director at PwC Kien Tan said: “Even if big chains aren’t opening, local businesses are. Local entrepreneurs know their local market and know where the demand is. That’s why they are willing to take that risk.”

Consumer markets leader at PwC Lisa Hooker added: “The good news is that there are green shoots, as new entrants are entering even embattled sectors such as fashion. Our research tells us that consumers still want to spend their money in well located and invested stores and leisure venues on the high street.”

In August, more than 50 major UK retailers ranging from Marks & Spencer to Harrods, Greggs and John Lewis wrote to chancellor Sajid Javid to demand an urgent review of business rates to safeguard the high street.

They pointed out that retailers account for around 5% of the British economy but pay about 10% of all business taxes and about 25% of business rates. They said a complete overhaul of property taxes is required to help fend off competition from online-only operators such as Amazon and Asos.

NET GROWTH

Pet shops, gyms and takeaways (especially those serving fried chicken) have however bucked the trend with an overall net increase in openings.

On a sector by sector basis, 15 out of 96 sectors showed a net growth in store numbers, and only takeaways and gyms showed double-digit openings (a net increase of 26 and 17 respectively).

Pet shops had a net increase of four shops, and the fastest growth was seen in the South East, North West and Greater London. The towns with the biggest increases were Abertillery, Cobham and Bridgnorth.

The South West saw the largest decline with 14 openings but 24 shop closures.
By business type, independent pet shops saw a decline in number with 124 closures against 119 new stores (a net loss of five shops), while the national chains saw growth with 16 closures being outnumbered by 25 openings (up nine shops).

Head of retail at LDC Lucy Stainton said: “The reality is that UK retail space will continue to look very different over the coming years, and this is demonstrated by the sheer number of stores opening and closing on an ongoing basis.”

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Rachel Wood

Rachel Wood, graphic designer. More than 40 years ago, I was one of the first females to be offered an apprenticeship within the printing industry. I've worked on record sleeves, DVD covers and various magazines throughout my career. In my spare time I collect movie posters and attend comic cons, I keep fit (and sane) with gardening and strength & conditioning training.

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