British high street lost 11,000 shops in 2020, study shows
March 24, 2021, 12:04 pm

British high street lost 11,000 shops in 2020, study shows

Empty shops and offices in Brighton city centre, southern England.

A further 18,000 may close in 2021 as researchers fears full impact of Covid crisis has yet to come

More than 11,000 outlets permanently disappeared from high streets, shopping centres and retail parks in Great Britain last year, with independent retailers and villages faring far better than chain stores and city centres.

A net total of 9,877 chain outlets and 1,442 independent retail, restaurant and leisure premises closed their doors in England, Wales and Scotland in 2020, according to the Local Data Company (LDC). The analysis covered 680,000 outlets in 3,000 shopping locations.

Government support, including business rates relief, a moratorium on evictions for those unable to pay landlords, support grants and furlough pay for workers, helped slow the pace of closures for independents by 11% compared with 2019.

That help ensured that the pace of closures was not as bad as predicted by LDC, which had expected at least 14,900 outlets to be vacated. However, the true impact of the pandemic has yet to become apparent. Many outlets included in the research were temporarily closed during lockdowns and were not counted as shut but may never reopen after restrictions are relaxed next month.

Up to 18,000 more shops, restaurants and leisure outlets could be vacated as the collapse of major retail groups including Debenhams, Topshop and Dorothy Perkins hits home, according to LDC.Lucy Stainton, head of retail at LDC, said: “Our latest report shows a marked increase in the structural decline across the physical retail and leisure markets but we would also argue that we aren’t yet close to seeing the full impact of the Covid-19 pandemic.

“What remains to be seen are the consequences of government support ending, effectively ‘defrosting’ a significant portion of the market which has been frozen in time since the onset of the pandemic. With this in mind we would expect to see the state of play in terms of vacancy rates and net change worsening over the course of 2021 and 2022 before levelling out.”

In 2020, fashion and clothing stores led the decline followed by bookmakers, estate agents and mobile phone shops. Barbers were the fastest-growing high street businesses, despite months of lockdowns which have kept them out of action, followed by beauty salons, fast food outlets and nail bars. Supermarkets and grocers were also among those faring well as they benefited from “essential” status during the lockdowns and allowed to trade.

The loss of commuters and tourists hit city centres hard, with unit vacancies rising by 2.5 percentage points to 16.1%, higher than any other type of location. In contrast, villages, which are surrounded by residential areas with a higher balance of independent retailers, were more resilient with vacancies increasing by just0.4 points to 11.1%.

More local convenience stores opened than closed for the first time in four years as the shift to working from home and a desire to avoid public transport benefited more convenient neighbourhood outlets.

The data also reveals the difficulties ahead in reinventing town centres to be less reliant on retail. Of the House of Fraser, Debenhams or Beales department stores that closed between January 2017 and December 2019, less than a quarter have found new occupiers without having to be reorganised into smaller units.

About 30% of the former department stores were either demolished or split into smaller units. LDC said a similar fate was likely to await a further 124 Debenhams stores which closed at the end of last year, but are not included in the 2020 data as many are expected to briefly reopen to clear stock this year before shutting permanently.

source: Sarah Butler

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.