High street footfall has plummeted across the UK, with one city affected so badly that its council had to demolish large sections of its city centre.
Roughly 50,000 businesses across the UK are under so much financial strain they are on the brink of collapse, according to a recent report by finance consultants Begbies Traynor.
More than 17,300 are expected to leave our high streets this year alone, costing 200,000 jobs, with Coventry a prime example of how shopping habits and the lingering effects of the COVID pandemic are impacting stores.
In the city, footfall was reported as being down by 55% compared to pre-pandemic levels, contributing to officials demolishing sections of its city centre to reimagine its layout.
The authority’s City Centre South project was confirmed in 2024 with the aim to “back into the city to live, work, play, and socialise,” as construction for 1,000 homes, alongside bars, restaurants and shops, began.
Last week, a report published by the Labour council cited Brexit as one of the reasons the number of businesses has plummeted in the city.
“Trade remains difficult due to post-Brexit import checks, especially with the EU,” the One Coventry Plan assessed, adding, “There is a continued need to build on Coventry’s strengths to create more high-quality jobs.
“This can help reduce inequalities—especially if local residents are supported with the right skills for future jobs.
“It’s also important to strengthen the local business support system to boost the number of high-growth companies. Currently, only 3.5 per cent of businesses in Coventry are classed as high growth, compared to 4.9 per cent nationally.”
Last year, the equivalent of 38 shops closed every day across the UK, while new store openings dropped compared to 2023, underlining the familiar issue with high streets.
The One Coventry Plan highlighted a similar story, disclosing that the number of registered businesses in the city dropped from 10,335 to 9,970 during the past 12 months.
It continued: “Main concerns for local businesses include falling demand and high operating costs (energy, labour, borrowing and taxes). Recruitment and skills shortages remain a major issue, even as more businesses and jobseekers use support services like the Coventry Job Shop.”
Likewise, in Cardiff, the closure of a prominent Debenhams store in its city centre led to the announcement of a new public square earlier this year.
Plans for the square include a splash pad, space for outdoor performances, markets, local street food vendors and other events as an attempt to breathe new life into a struggling retail centre.
Meanwhile, the Office for National Statistics has announced inflation has risen to its highest since January 2024, reaching 3.8% in the year up to July, with many essential household items surging in price.