Local Data Company: 2023 UK Retail and Leisure Trends Analysis

The latest report by the Local Data Company (LDC) and Green Street, covering key developments across the entire Great Britain retail and leisure market over 2023, shows a spike in numbers of both closures and openings, representing significant churn. The overall data picture demonstrates the resilience and flexibility of GB retailers and leisure operators in the face of widespread economic difficulty, with clear opportunities emerging for businesses and landlords. Rises in interest rates and operational costs compounded the challenges for GB retailers, leading to a year-on-year increase in closures of 14% between 2022 and 2023. However, closures were somewhat tempered by a 5% rise in openings during the same period, indicating a much more resilient and adaptable market than has been seen in previous years. Innovative changes of use and retail-to-residential conversions have become increasingly attractive, offering an economically viable option to address vacancies, align locations with current demand and revitalise town centres. Despite the economic headwinds seen over 2023, the latest data indicates a notable level of resilience across GB retail and leisure. While inflation and interest rates ease, making space for growth, uncertainty is still present in the form of anticipated economic and political change. Green Street and LDC anticipate that flexibility and careful strategy will enable agile retailers and developers to navigate any upcoming challenges and identify opportunities. The Local Data Company is the UK’s most accurate retail location insight company. For more information, check out LDC’s full offerings and insights.