- England and Wales recorded a net increase of 723 retail premises in 2025.
- More than 6,000 retail units have disappeared from local communities since 2020.
- London saw the biggest five-year decline, losing 1,266 retail premises.
Britain’s struggling high streets may finally be showing early signs of stabilisation, with new figures suggesting retail openings are beginning to outpace closures again in several parts of the country.
According to analysis of Valuation Office Agency data by tax advisory firm Ryan, England and Wales ended 2025 with 507,810 retail premises in operation. That represented a net increase of 723 stores compared with the previous year, the equivalent of more than 13 additional retail units opening each week.
The figures suggest the sharp contraction that hit the UK retail property market during and after the pandemic may now be slowing, even though the sector continues to face pressure from rising costs, weak consumer confidence and changing shopping habits.
Retail property numbers increased across almost every region of England and Wales during 2025, with the North West standing out as the only region to record a decline, losing 41 retail premises over the year.
High streets are changing shape, not returning to the past
The recovery, however, comes with an important caveat: many of the shops lost over the past five years are not coming back.
The data shows England and Wales have seen a net reduction of 6,045 retail premises since the end of 2020. These are sites that have permanently disappeared from local communities after being demolished or converted into alternative uses such as housing, leisure spaces or mixed-use developments.
London recorded the steepest decline, losing 1,266 retail premises over the five-year period. The South East followed with 1,191 losses, while the North West and North East lost 719 and 672 units respectively.
Industry observers suggest the retail landscape is now being reshaped rather than rebuilt in its old form.
Large shopping centre owners including Hammerson have increasingly been dividing empty department store spaces into smaller retail units as demand shifts towards flexible formats and smaller brands.
At the same time, some retailers appear to be stepping back from plans to repurpose major retail sites entirely. John Lewis Partnership, for example, has reportedly cooled earlier ambitions to convert parts of its property portfolio into rental housing.
Retail pressures are still far from over
Despite signs of stabilisation, the sector continues to face a difficult operating environment.
Retailers are grappling with higher business rates, rising labour costs and ongoing uncertainty around consumer spending. The pressure is also reflected in property valuations.
Ryan’s annual business rates review for 2026 found that rateable values for the retail sector increased by 9.3 per cent, despite the major structural changes the industry has experienced since the pandemic accelerated online shopping trends.
The figures may offer some cautious optimism for town centres and shopping destinations that have struggled through years of store closures. But the data also underlines a broader reality: the UK high street is not returning to its pre-pandemic model, and much of the recovery now depends on how successfully landlords, retailers and local authorities adapt to a very different retail economy.
