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More North East stores closed than opened in 2016, finds study

New PwC research, compiled with the Local Data Company (LDC), has revealed that a greater number of North East stores closed than opened in 2016.

Whilst 193 shops opened during the year, there was a net decrease of 14 shops as the region experienced 207 closures in the period.

However, digging a little deeper, the signs of retail downturn are not as bad as they first seem.

The latest findings actually represent a significant fall in the number of net closures compared to 2015, when only 142 new outlets opened and 193 closed - a difference almost four times the number of last year’s.

Moreover, five town centres (Morpeth, Gosforth, Hartlepool, Newcastle and Darlington) all saw a positive net change in 2016, experiencing more openings than closures.

Durham, Bishop Auckland, South Shields, Stockton on Tees, Chester-le-Street and Whitley Bay saw the highest net reduction in the North East followed by Blyth and North Shields.

Convenience stores, fast food takeaways and jewellers were amongst those growing at the fastest rate in the North East, while financial institutions, department stores and amusement parks/arcades have been amongst the hardest hit in 2016.

Mike Jervis, retail specialist at PwC, said: “The research clearly highlights the changing face of town centres - leisure and experience destinations continue to replace traditional high street stalwarts.

“The insatiable appetite for fast food and coffee shops fills the void left by banks, mobile phone and clothing shops.

“Fashion is migrating to online at a faster rate than ever, leaving closures in its wake. Last year was relatively benign for restructuring and insolvency in all sub-sectors of retail, so the net closures points to structural changes in customer behaviour more so than a consumer slowdown.”

Commenting more broadly on the retail sector, Madeleine Thomson, retail and consumer leader at PwC, added: “2017 will be a crucial year for retailers. The combination of price inflation on goods and groceries will mean that brand loyalty will play a more significant role than ever.

“However, with prices on the up and less disposable income available to the average UK consumer as a result, retailers will need to be versatile and savvy to increase footfall to their stores.”

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