Businesses closing more quickly than opening, but Aberdeen bucks the trend

23/11/2023

NEW DATA has revealed more UK businesses are closing than opening for the first time since 2010, but the Granite City remains resilient.

The Office for National Statistics revealed that 345,000 businesses closed last year (11.8%). That’s a 5% jump from the previous year, putting the ‘business death rate’ at a 12-year high.

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The number of new businesses created fell by 7% last year to 337,000. That’s around the same number that opened in 2020, when the country spent much of the year in lockdown, and the lowest since 2012.

Aberdeen on right track

However, recent figures compiled by the Press and Journal shows the North-east is bucking the trend of shop closures seen through most of the UK.

The P&J’s high street tracker shows which shops in the city centre, across the likes of Union Street, Belmont Street and Schoolhill, have opened and which have shut. It also accounts from units in Union Square, the Bon Accord Centre and the Trinity Centre.

From June to November, 16 units have opened across the city centre and shopping centres, while just 14 have closed.

The immediate outlook for Aberdeen’s city centre is positive after First Minister Humza Yousaf announced £400,000 of funding for Our Union Street during his keynote speech at the SNP’s conference in Aberdeen last month.

The Granite Mile also offers the most generous incentives package in the UK for new independent businesses to start-up on the famous street.

The Cleavin Barber Club has recently opened on the street, while LoLo + Co, currently on Netherkirkgate, is planning a move to the street.

Challenges remain for businesses opening up across the country as energy prices remain high and interest rates sit at 5.25%, but heading into the busiest period of the year, things look rosy for Aberdeen.

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