Nearly 6,000 retail stores have closed so far this year, as new research shows the extent the problematic business rates tax regime is having across town centers in the UK.
According to the Centre for Retail Research retailers with 10 or more stores have closed thus far in 2019 5,834 shops, up 77% from 2018.
Between 1 January and 30 September 30,708 shops have been closed by large retailers falling into administration and 333 shops closed their shutters for the last time through Company Voluntary Arrangements (CVA).
Through “rationalisation” as part of cost cutting, large retailers have closed 4,793 shops, in the same period of 2019 2,531 more shops were closed by large retailers.
Robert Hayton, head of UK business rates at Altus Group said, “Most large chains will have reached the de minimis regulation limit [the cap] this financial year and will effectively be precluded from the enhanced discount, but the commitment to lower the overall burden will be a welcome relief with the standard rate of tax having gone above 50% and at its highest level since 1990, with the rate set to rise further in April.”