There has been a further decline in the number of shops in Wales run by multiple retailers with closures far exceeding new opening.
According to new research from professional advisory firm PwC, carried out by the Local Data Company, 164 stores opened compared with 424 closures in the first half of this year - a net fall of 260 stores.
Multiple retailers are defined as having at least five stores.
The decline of 2.6% puts Wales just above the average across Britain with a net fall of 2.5%, a discrepancy attributable to longer lockdowns. Combined with some store closures being delayed until 2021, it meant Wales fared worse in early 2021 than at the same time last year when the net fall was 2.3%.
Standalone stores fared best in Wales in first half of 2021, falling by just 1.7%, only slightly above the 海角视频 average of 1.6%. Shopping centres, down 5.3%, fared the worst.
Read more: Some easing in retail footfall decline in Wales
Jason Clarke, partner in PwC for Wales and the west of England, said: “Stores in Wales, like Scotland, have suffered a greater hit than their English counterparts due to a slower release from lockdowns. That said, the fall wasn’t that much greater than the average across Britain.
“Government support has proved to be the lifeline for many to weather the storm and survive the pandemic. The fate of many operators has also been helped by resilience in consumer spending, including investment in the home through lockdown and using enforced lockdowns savings for ‘revenge spending’ when possible.
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“However, operators are far from out of the woods and the next six months will be a make or break for many chains, particularly with the reinstatement of full business rates for all but the smallest operators, the winding-down of furlough support and agreement yet to be reached between many operators and landlords on rent arrears.
"There is also continued uncertainty for hospitality businesses who will be apprehensive of further restrictions on operating and the possible requirement for vaccine passports later in the year.
“But there are also some green shoots, not least with greater working from home. Consumers still want physical shops and a number of chains are still opening stores or coming onto the high street, independents or flagships together with some new restaurant openings across Wales.”
On a sector- by-sector basis the growth seen in a small number of categories wasn’t near enough to offset the declines in other categories.
Leisure dominates growth, with takeaway chains buoyed by a rise in delivery as well as walk-in demand. Smaller chains and franchise operators, such as cake shops and amusement arcades, have also been able to take advantage of lower rents and vacant units to expand their footprints.
Mr Clarke said: "In the uncertain times ahead it’s likely that not all shopping centres will survive in the same form, so investors will be considering how to repurpose the spaces to ensure profitability. Showcasing independent and local operators rather than the chains that are retreating could attract more footfall
"On the other hand, converting for alternative use, whether housing, offices or civic services could be on the cards. The current overcapacity of retail space needs to be addressed and effective changes will require the cooperation of government, landlords and operators.”
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Lucy Stainton, head of retail and strategic partnerships at The Local Data Company said: “As we move through the second half of 2021, we can now start to truly assess whether the market is entering into a ‘recovery phase’ following wave after wave of restrictions to retail and hospitality trade, designed to suppress the spread of the coronavirus.
"Despite our latest research showing that total vacancy across GB had reached an all-time high of 14.5% at the end of H1 2021, there are promising signs that the speed of the decline we were tracking across the worst of the pandemic is slowing.
"Our latest research on behalf of PwC points to a gentler net decline and pockets of resilience in key sectors such as fast food take away and convenience stores. Beyond this, we have witnessed the independent retail market returning to modest growth as consumers were motivated to support local businesses.
“That being said, the compound impact of multiple lockdowns can’t be ignored and whilst a slowdown in store closures is certainly welcome and a positive sign, the volume of empty units across GB is at a record high with no sign that the demand will ever be there to meet the supply. In fact, the data for H1 2021 indicates that openings were at the lowest they have been for six years.
"I fervently believe that there is still appetite for retail and leisure provision away from online, especially for occupiers that innovate in order to retain consumer interest long-term.
"However, the key to protecting our retail destinations will be for landlords, councils and place makers to proactively consider surplus space and how they can redevelop property for other uses outside of retail."