Over a quarter of UK shops may close down over 10 years - BRC

More than one in four UK shops are at risk of closing down in the next 10 years, according to a report by the British Retail Consortium (BRC).

The association estimates that as many as 74,000 of the UK’s 270,000 shops could close by 2025 as a result of growth in ecommerce and the challenging economic climate.

At the same time there will be 900,000 fewer jobs in the retail sector by 2025, although those that remain will be more productive and higher earning, according to the report. The study is based on detailed research and modelling across the industry, involving the most senior executives in retail businesses.

Around 15% of retail sales are now conducted online and there are already 40,000 fewer shops today than there were in 2006.

Areas that are already economically fragile are likely to see the greatest impact of store closures and some of the people affected by changing roles will be those who may find it hardest to transition into new jobs that are created.

Smaller businesses are also likely to be disproportionately affected by the ongoing evolution of the industry, as they generally have fewer ways in which to respond to rising costs.

BRC Chief Executive , Helen Dickinson, said: 'The key conclusions of today’s report are not surprising - there will be a further contraction in retail space and a reduction in the number of people employed in retail. Individual retailers will find their own paths to 2020 and beyond but from an industry perspective, we hope to see technology and competition resulting in better experiences for the customer and better jobs for those working in retail.'