A record number of shops are expected to close their doors this year, with rising business rates cited as the final blow for many retailers.
According to fresh figures from the Centre for Retail Research, store closures could hit 17,349 in 2025, surpassing the 17,145 recorded in 2022 when pandemic support measures were scaled back.
Last year saw 13,479 shops cease trading — a 28 per cent jump on 2023 — with well-known names among the casualties. Carpetright, once operating 273 stores, went under, although rival Tapi Carpets & Floors took on 54 of its sites. The Body Shop went into administration in February, closing 82 high street outlets, while Homebase’s demise in November shuttered half of its 130 branches, the other half saved by the owners of The Range.
On average, 37 shops closed every day in 2024, creating what the Centre for Retail Research called “another brutal year for the retail sector”. Many executives fear that 2025 will be even tougher due to an imminent rise in business rates, which takes effect in April.
Chancellor Rachel Reeves has announced a reduction in business rates relief from 75 per cent to 40 per cent for retailers, leisure firms and hospitality operators. According to Altus Group, this will see the typical shop’s rates bill more than double, jumping from £3,589 to £8,613 in the next tax year.
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