Revealed: The top reason why precious local businesses are being forced to shut up shop – and it’s NOT the cost of living

With mass closures of beloved UK chains like Poundland, Claire’s and Hobbycraft, it is no secret the British high street is in serious decline. 

But with a web of interlocking reasons, from the cost-of-living crisis, to changing shopping habits, to rising employer costs in the autumn Budget, it becomes difficult to unpick exactly why.

It has been revealed in exclusive data obtained by the Daily Mail it is personal reasons like health or family most commonly behind the loss of most of our precious local shops. 

Some 34 per cent of UK business owners have considered closure in the last year for this reason, according to new figures from personal finance firm NerdWallet UK.

Meanwhile, falling customer demand (31 per cent) and supply chain issues (30 per cent) are next most often behind businesses being on the brink. 

There are 29 per cent of stores experiencing financial difficulties, while 28 per cent struggle with increased rent or property costs. 

And staff shortages were the thorn in the side of a quarter of businesses, as per the survey of UK business owners. 

These varied crises come after more than 13,500 shops closed last year, up 28 per cent on 2023, according to the Centre for Retail Research. 

But with a web of interlocking reasons, from the cost-of-living crisis, to changing shopping habits, to rising employer costs in the autumn Budget, it becomes difficult to unpick exactly why. Pictured: File photo  

It has been revealed in exclusive data obtained by the Daily Mail it is personal reasons like health or family most commonly behind the loss of most of our precious local shops. Pictured: File photo 

And they are only set to get worse, with formerly key shopping periods like Black Friday due to be far less lucrative than previous years. 

In fact, some 28 per cent of Brits plan to spend nothing on the huge blowout sales day in November this year, as per NerdWallet UK numbers.  

The firm’s spokesperson Sarah Fleming said: ‘In 2025, we’re seeing this trend continue – with high street favourites like Poundland, Brewdog, Morrisons cafés/stores, and WHSmith closing shops across hundreds of locations in the UK.’

Across just these brands, with others beyond them on the chopping block too, nearly 300 units across the UK are set to bring their shutters down for the last time this year.  

She continued: ‘A growing number of high street banks are also closing branches this year, including Natwest, Santander, Lloyds, Halifax and more.’

This is much to the chagrin of customers who rely on these more than 100 branches set for the axe this year for vital financial advice and support. 

Against such a bleak backdrop, British business owners are considering taking increasingly drastic steps to survive. 

Some 36 per cent of businesses plan to raise their prices, by an average of a whopping 14.5 per cent in the next 12 months. 

More than 13,500 shops closed last year, up 28 per cent on 2023, according to the Centre for Retail Research. Pictured: File photo 

And this is only set to get worse, with formerly key shopping periods like Black Friday due to be far less lucrative than previous years. Pictured: File photo 

A well-placed viral trend worked well for M&S this year, for instance, she said, who brought out its viral strawberries and cream sandwich (pictured) to celebrate this year’s Wimbledon tennis tournament

A quarter, meanwhile, are desperately searching for ways to cut energy costs behind the scenes. 

Ms Fleming said the solution for embattled shopkeepers could be to move more of their attention online in a ‘bricks and clicks’ hybrid approach. 

It worked well for M&S this year, for instance, she said, who brought out its viral strawberries and cream sandwich to celebrate this year’s Wimbledon tennis tournament. 

A well-placed video that happens to go viral could work wonders – more than 55 per cent of British internet users, or around 30million people, watch at least one every day. 

The crunch time to catch shoppers looking to splash the cash on Black Friday, Cyber Monday or for Christmas is to plant the seed by teasing offers around early November, she said.  

‘The narrative is really clear though’, Ms Fleming continued: ‘Many Brits really care about small businesses.’ 

In fact, as many as a quarter of UK customers surveyed said they would go out of their way to pay cash to a small business, just to help them avoid transaction fees. 

But it may not be quite that easy to throw our favourite local shops a lifeline. 

‘The narrative is really clear though’, Ms Fleming continued: ‘Many Brits really care about small businesses’. Pictured: File photo 

Her forecast was grim: ‘Inflation, energy costs, and recessionary pressures are reshaping not just the high street, but the very way UK businesses operate’. Pictured: File photo 

‘Ultimately at the same time, [shoppers] also face the increased cost of living and rising debt’, Ms Fleming said. 

The average British consumer has an eye-watering more than £12,000 in debt, NerdWallet UK showed. 

Her forecast was grim: ‘Inflation, energy costs, and recessionary pressures are reshaping not just the high street, but the very way UK businesses operate. 

‘Without targeted support, many smaller, family-run shops, cafés, and pubs may not survive: leaving the high street stripped of both local stores and the banks that once defined them.’ 

Across both massive household name firms and smaller independent businesses, the country’s favourite shopping spots are feeling the pinch. 

River Island recently joined the list of brands looking to cut down its national network under sweeping plans which could put thousands of jobs on the line. 

The embattled retailer has unveiled a radical restructuring plan in a bid to reverse recent losses due to a slump in trading.

Bosses blamed the closures on the ‘migration of shoppers from the High Street to online’ and higher costs to run stores.

River Island (pictured, file photo) recently joined the list of brands looking to cut down its national network under sweeping plans which could put thousands of jobs on the line 

Meanwhile, the Original Factory Shop (pictured, file photo), which sells everything from shoes and garden benches to perfume and kitchen roll, has also announced a number of store closures in recent months 

The family-owned retailer confirmed it is proposing to close 33 of its 230 stores by January next year as a result.

A further 71 stores are also at risk depending on talks with landlords in order to secure improved rental deals.

Meanwhile, the Original Factory Shop, which sells everything from shoes and garden benches to perfume and kitchen roll, has also announced a number of store closures in recent months.

It is a fresh blow to shoppers wanting to buy their everyday items in person in shops rather than online.

The retail sector is being hammered by higher wages and employer national insurance contributions announced, resulting in a large number of job losses and even more empty shops on Britain’s ailing high streets. 

Meanwhile, some of what are supposed to be our country’s best tourist destinations are struggling just as much to keep smaller business booming. 

More than two million visitors make a pilgrimage to Stratford-upon Avon every year as they pay homage to the birth place of the most celebrated playwright in history.

The medieval market town is beautifully adorned with quaint gift shops and cobblestoned streets, and surrounded by the smell of freshly made fudge.

Meanwhile, some of what are supposed to be our country’s best tourist destinations are struggling just as much to keep smaller business booming. Pictured: Former Halifax building in Stratford-upon-Avon  

A host of high street names have shut down, while Turkish barbers and vape shops have popped up, rough sleepers have set up bases on vacant shopfronts, and gangs of yobs roam around wearing balaclavas. Pictured: Former BHS building in Straford-upon-Avon  

Just under 50 miles away, in Walsall (pictured), West Midlands, families living along the once thriving high street described it as a ‘dying ghost town’ after more than 40 shops closed their doors 

It was once the beating heart of the UK’s leather and saddle trade before becoming a ‘destination’ retail centre with a range of trendy independent stores and top chains. Pictured: A smashed up storefront in Walsall  

Every summer, crowds of literature fans from across the world queue up outside William Shakespeare’s Birthplace museum and the Royal Shakespeare Theatre is packed out as actors take to the stage.

From looking at the busloads of international tourists queuing patiently to enjoy Stratford’s 800-year history, this bustling town is the last place you would imagine to be in ‘decline’.

But there is a side of the town locals are less proud of.

A host of high street names have shut down, while Turkish barbers and vape shops have popped up, rough sleepers have set up bases on vacant shopfronts, and gangs of yobs roam around wearing balaclavas.

One woman, speaking anonymously to the Daily Mail, even opened up about how she was recently sexually assaulted by a man wearing a balaclava in the town centre, and now fears walking alone at night.

Just under 50 miles away, in Walsall, West Midlands, families living along the once thriving high street described it as a ‘dying ghost town’ after more than 40 shops closed their doors.

It was once the beating heart of the UK’s leather and saddle trade before becoming a ‘destination’ retail centre with a range of trendy independent stores and top chains. 

But depressing photos have shown how far downhill the town has gone in recent times, with many businesses now boarded up, featuring smashed windows and covered in graffiti.

The market town was recently named the second lowest rated area in England to start a business and previously had one of the worst empty shop rates in Britain.

Residents of the area admit they fear for the future of the ‘forgotten’ shopping hub where there is ‘no longer any sense of community’.