High streets grapple with declining foot traffic
The ongoing closure of bank branches across the UK is contributing to the decline of the country’s high streets, a report by advisory firm PwC has revealed.
Nearly 1,000 bank branches have shut down on a net basis over the past two years, forcing customers to either travel further for in-person services or switch to digital banking. This shift is impacting foot traffic on British shopping streets, where an average of 10 retail or hospitality businesses closed each day in 2024, according to a survey by Green Street for PwC.
“One of the main reasons that high streets are losing footfall is because there are far fewer banks,” said Kien Tan, senior retail adviser at PwC told Bloomberg. “The number of banks has halved in 10 years. That’s massive.”
The trend is accelerating, with major banks continuing to reduce their physical presence. Banco Santander announced this week it would close 95 branches in the UK, affecting approximately 750 jobs.
Lloyds Banking Group also announced plans to shut down 136 branches across the UK by March 2026 as it cuts costs and expands digital services. The closures affect Lloyds, Halifax, and Bank of Scotland locations. NatWest Group has also scaled back their branch networks.
Branch closures have been widespread for years, with a net reduction of 1,795 outlets in 2021 and 2022 combined. As a result, a total of 12,804 chain stores also shut down in British shopping areas in 2024, the PwC report found. While that marked an improvement from 2023, the consultancy expects further closures this year as retailers adjust to rising national insurance contributions, which take effect next month.
“Retailers continue to face significant challenges in 2025,” said Zelf Hussain, restructuring partner at PwC. “With substantial payroll cost increases and higher business rates taking effect in April, profit margins will remain under pressure, further straining high street retailers.”
Pubs and pharmacies were among the hardest-hit sectors last year. Boots announced plans in 2023 to close 300 UK stores, while Lloyds Pharmacy confirmed its exit from the high street. The reduction in pharmacy locations has broader implications, as the government seeks to shift more healthcare services to local pharmacies to alleviate pressure on the National Health Service.
PwC’s report, released Thursday, analysed more than 200,000 chain outlets across 3,500 locations in Great Britain, offering insight into the evolving landscape of high streets, retail parks and shopping centres.
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