London Daily

Focus on the big picture.
Sunday, Aug 23, 2026

UK loses 83% of department stores since BHS collapsed

UK loses 83% of department stores since BHS collapsed

The UK has lost 83% of its main department stores in the five years since the collapse of the BHS chain.

The figure highlights the extent of the upheaval in the High Street as the Covid pandemic sped up changes in shopping habits.

The data, compiled by commercial property information firm CoStar Group, also reveals that more than two-thirds of these shops remain unoccupied.

Some 237 big stores have yet to be taken over by a new business.

"The data undoubtedly highlights the acceleration of change in the retail sector in recent years, which the pandemic has only exacerbated," said CoStar Group's head of analytics, Mark Stansfield.

CoStar tracked the UK's largest chains, from BHS and Beales to Debenhams and House of Fraser, from 2016 to the present day.

Five years ago, they had 467 stores between them. Now, however, only 79 are left.


CoStar Group also examined what had happened to the 388 that had closed.

Although 237 are currently sitting empty, 52 already have either firm plans in place or early planning approval for a change of use or repurposing. The research was done in July.


Mr Stansfield told the BBC he believed the pace of change would soon step up.

"We are increasingly seeing forward-thinking real estate owners getting ahead of the problem and reshaping what are key assets in our town centres to provide a focal point for regeneration," he said.

"I think we'll see many more plans come to light in the coming months. With these store closures come new opportunities."

No quick fix


Department stores have long been the cornerstone of UK shopping areas. Many are in purpose-built shopping centres, while some occupy historic buildings.

Figuring out what to do with all this redundant space is one of the biggest challenges for landlords, as well as for the town centres that host those properties.

BHS is a good illustration of why there is no quick fix for the problem. Five years after the retailer ceased trading, a quarter of its former outlets have still failed to attract new tenants.


In 2016, the BBC visited the old BHS store on Edinburgh's Princes Street, one of the biggest in the chain. The owners already had new ideas for the site - and crucially, they decided to turn it into a building with a mix of different uses.

Its six floors, once riddled with asbestos, have slowly been transformed. The old staff locker rooms and half of the building have been turned into hotel bedrooms by Premier Inn.

The former BHS store on Princes Street in Edinburgh has been repurposed

They're also putting the finishing touches to a state-of the art office right at the top, while the basement will hopefully become a bowling alley. There will also eventually be retail, just a lot less than before.

"It costs a lot of money and takes a lot of time to turn these large format spaces into new uses," says the architect behind the project, Frank Hinds of CDA.

"In development terms, we did this in a relatively short space of time."

When it comes to repurposing, says Mr Hinds, the stumbling blocks are often financial. Investors have to be able to make a return to justify the huge investment. Luckily for this BHS, it's on a world-class street.

"The viability comes from the location and the desire that people have to be in that location," he adds.

For Premier Inn, the hotelier involved, it was an opportunity too good to miss. "Buildings like this don't come along very often with beautiful views across to the castle," says Valerie Graham, regional operations director.

Premier Inn's Valerie Graham: "Buildings like this don't come along very often"

"Seeing so many people get use of the space is just fantastic. And the demand is there. We're creating jobs too."

Edinburgh has lost four of its main department stores in the past few years, but, fortunately, there are solutions under way for all of them.

For instance, the former House of Fraser store at the other end of Princes Street is about to open its doors as the Johnnie Walker Whisky Experience.

Small town blues


Filling the gaps in smaller towns is a much greater challenge. In Dumfries, the old Debenhams store is still vacant.

It's the biggest retail unit in the town, with no takers so far for the space.

"It comes down to money," says Scott Mackay, who runs the Midsteeple Quarter, a local company founded to benefit the community.

Through crowdfunding, donations and public money, it's buying old, empty, shops and bringing them back to life with new tenants.

The community group is buying up shops around the historic Midsteeple in Dumfries

"This is a small rural town historically and there isn't the amount of money to be invested in Dumfries compared with our bigger cities. We stand or fall on our own two feet," he says.

Would he like to take on the former Debenhams site as well? "If we had the funding, absolutely we would take on a building like this," he says.

"I think it would make a great small boutique cinema or food court on the ground floor, with potentially residential on the upper floors."

Some of form of intervention is needed, he believes, to avoid the store sitting empty for years.

Debenhams is a more recent casualty of the changing High Street environment than BHS, having shut its last stores in May this year.

In all, 149 former Debenhams stores are currently vacant, as the data from CoStar Group shows.


CoStar Group's team has been scouring planning applications and talking to property agents on the ground as well as big landlords for this research, which is the most comprehensive picture to date on the huge structural changes to have hit this part of British retail.

The appetite for quality shop space hasn't completely diminished. For instance, Next has already taken space in Debenhams stores for its new beauty concept, while Mike Ashley is redeveloping or re-letting space for his Flannels brand.

But if BHS is anything to go by, reviving many of these these vast sites will take time, as well as some radical thinking.

Newsletter

Related Articles

0:00
0:00
Close
Iranian Hackers Shut Down British Power Plant for Four Days in Landmark Cyber Attack
Novak Djokovic Reveals Relentless Self-Doubt and Rejects Retirement in New Documentary
Trump Imposes 50% Tariffs on Canadian Goods After Bilateral Trade Talks Collapse
Australia Combines Indigenous Fire Knowledge With Satellite Tech to Combat Catastrophic Wildfires
Father and Son Jailed in Scotland Over £900,000 Airport Cannabis Smuggling Operation
UK Fraud Reports Surge Sevenfold as Criminals Exploit QR Codes in Parking Meters and Phishing Emails
Brighton Thrash Aston Villa in Four-Goal Opening Half as Manchester City Trail Bournemouth
Erin Patterson Appeals Triple Murder Convictions After Hotel Mixed Sequestered Jury With Prosecution
Bank of England Maintains Close Watch on Banks Amid Global Economic Uncertainty
Warm Weather and Tourism Support UK High Street Spending During Summer
Westminster Faces Continuing Political and Administrative Fallout From Epstein Files Release
UK Invests in Domestic Defence Drone Manufacturing to Strengthen Military Supply Chains
Around Five Million UK Households Face Higher Mortgage Payments by 2028
Bluetongue Virus Cases Rise Across England, Wales and Scotland
UK Government Holds First National Day for Victims and Survivors of Terrorism
Historic Summer Droughts Threaten UK Harvests and Put Further Pressure on Food Prices
UK Economy Holds Up in Second Quarter Despite Global Energy and Geopolitical Pressures
UK Opens National Artificial Intelligence Safety Testing Facility
UK Government Finalizes Plans to Bring Remaining Regional Rail Services Into Public Ownership
Environment Agency Imposes Record Penalties on Water Companies Over Illegal Sewage Discharges
Great British Energy Announces Offshore Wind Partnership in North Sea
UK Government Tightens Planning Rules to Accelerate Housing Development
NHS Launches Digital Overhaul to Cut Elective Care Waiting Lists
Bank of England Signals Interest Rates May Stay Higher for Longer as Inflation Pressures Persist
The rise and fall of Hui Ka Yan, China’s richest man
Woke: Britain Considers Plain Packaging for Cigars as Specialist Shops Warn of Industry Collapse
Britain's Public-Service Productivity Remains Below 2019 as £80 Billion Output Gap Fuels WFH Debate
Mandelson Epstein Case in Jeopardy as U.S. Files Stay Out of Reach
Prince Harry and Six Others Ordered to Pay £9.5 Million After High Court Defeat
Bank of England Holds Interest Rate at 3.75% as Inflation and Energy Risks Persist
UK AI Security Tests Find Autonomous Agent Attempting Malicious Code Injection
UK Economy Grows 0.4% in Second Quarter Amid Global Pressures
UK Joins European Allies in Condemning Israeli Settlement Plans in West Bank E1 Area
Multiple People Killed in A66 Collision Near Middlesbrough Involving Police Vehicle
UK Government Holds First National Day for Victims and Survivors of Terrorism
UK Met Office Warns of Severe Autumn Storms as Strong El Niño Follows Historic Drought
Petrol Bombs Set Luxury Cars Alight Outside Birmingham Wedding as Police Hunt Three Men
Bitcoin Surges Toward $80,000 as Short Squeeze and ETF Inflows Ignite Crypto Rally
Prince Harry and Co-Claimants Ordered to Pay £9.5 Million Toward Daily Mail Publisher’s Legal Costs
Prince Harry and Meghan Markle Reportedly Plan Return to Britain With Their Children
UK Court Ruling Threatens Deportation Plans for Potential Trafficking Victims to Albania
Kemi Badenoch Presses UK Government for Decisions on Rosebank and Jackdaw Oil Fields
UK Foreign Affairs Committee Chair Calls for Ban on Goods from Occupied West Bank
Andy Burnham Government to Place Civil Servants Directly in English Mayoral Offices
Met Office Warns Major El Niño Could Bring Stormier, Wetter Autumn to UK
UK Economy Gains Unexpected Momentum Ahead of Andy Burnham Government’s First Budget
Twenty-Nine US States Take Meta to Trial Over Alleged Child Addiction on Instagram and Facebook
Former Scottish National Party Executive Peter Murrell Jailed for Five Years Over £400,000 Embezzlement
Moderna and Merck's Personalized Cancer Vaccine Succeeds in Historic Late-Stage Melanoma Trial
Prince Harry and Meghan to Move Back to Britain With Their Children
×