Shop Numbers Return to Growth After Years of Decline, Say Experts

Why It Matters

The modest uptick signals a potential rebalancing of high‑street retail, offering landlords and investors a window to capitalize on mixed‑use conversions. However, a 9.3% jump in rateable values intensifies cost pressures, prompting retailers to contest assessments.

Key Takeaways

• 13+ new retail stores open weekly across England and Wales.
• Net increase of 723 stores year‑over‑year, first rise after decline.
• Over 6,000 retail premises vanished 2020‑2025; London lost 1,266.
• Retail property values rose 9.3% in 2026 business rates revaluation.

Pulse Analysis

The pandemic accelerated a structural shift that had already been nudging UK high streets toward decline. Even before Covid‑19, many town‑centre locations were over‑retailled, with large department‑store footprints outpacing consumer demand. Data from the Valuation Office Agency, analysed by tax advisers Ryan, shows a net loss of 6,045 retail premises between 2020 and 2025, underscoring the depth of that contraction. Yet the latest figures reveal a modest reversal: more than 13 new stores open each week and a net gain of 723 outlets year‑over‑year, the first positive growth in years.

Recovery, however, is uneven. All regions except the North West added premises, while London recorded the steepest five‑year decline, shedding 1,266 units. Property owners are adapting by subdividing former department‑store shells into smaller, flexible units—a trend championed by firms like Hammerson. This granular approach aligns with the broader move toward mixed‑use developments that blend retail, residential, leisure and service functions, catering to hybrid‑working lifestyles and changing consumer habits. The rebalancing of floor‑space reflects a market that values agility over sheer size.

The fiscal backdrop adds complexity. Ryan’s 2026 business‑rates review shows a 9.3% rise in retail rateable values, outpacing the modest physical expansion. Higher assessments increase operating costs for already pressured retailers, prompting many to challenge valuations. For landlords, the uplift offers higher income potential, but it also raises the stakes for tenant negotiations. Stakeholders must weigh the benefits of mixed‑use conversions against the tax burden, while monitoring consumer sentiment to gauge whether the current uptick signals a sustainable revival or a temporary blip.