London Daily

Focus on the big picture.
Thursday, Aug 20, 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
Prince Harry and Meghan to Move Back to Britain With Their Children
England and Wales Have Fewer Than 1,800 Prison Places Left for Men
Suspected People Smuggler Arrested After Investigation Identified Him
Children's Doctors Warn That Vaping Can Lead Young People to Smoking
Hundreds of Thousands of Students Receive GCSE and Vocational Results Across England, Wales and Northern Ireland
Here Is What Can Never Happen in Your Country: Taiwan Is Giving Money to All Its People Because It Collected Too Much Tax
UK Inflation Rises to 2.9% as Energy Bills Jump
UK Issues New Conduct Guide for Asylum Seekers on Consent and Respect
Moderna Shares Surge After Positive Personalized Skin Cancer Trial Results
UK Markets Watch US National Debt Surpass Forty Trillion Dollars
UK Broadcasters Urge Government to Invest in Digital Participation and Broadband
CVC Capital Partners and Standard Life Launch Two Billion Pound Pension Risk Transfer Venture
UK Private Sector Productivity Growth Accelerates in Second Quarter
UK Foreign Secretary Ed Miliband Condemns Israeli E1 Settlement Tender
UK Watchdog Investigates Trainline, Virgin Atlantic and RED Driving School Over Hidden Fees
Prince Harry and Meghan Markle Plan Move to Private Home Outside London
UK Retail Sentiment Improves as Summer Spending Boosts Consumer Confidence
UK Aid Cuts Draw Warnings From Charities Over Humanitarian Consequences
UK Financial Conduct Authority Issues Guidance for Motor Finance Redress Scheme
UK Met Office Launches Aviation Programme to Reduce Climate Impact of Persistent Contrails
Former UK Civil Service Chief Received Record 500,000 Pound Severance Payment
West Midlands to Bring Bus Network Under Public Franchising Model
UK Government Drops Plan to Relax Affordable Housing Requirements After Backlash
UK Reaffirms Military Support for Ukraine Despite Russian Hybrid Warfare Threats
UK Technology Sector Expands Nearly 8 Percent as Digital Industry Outpaces Wider Economy
UK Drought Threatens Harvests Across England and Wales as Food Inflation Risks Persist
UK Government Pledges 442 Million Pounds to End Rough Sleeping by Christmas
UK Government Signals Willingness to Reconsider Digital Services Tax Amid US Tariff Threats
UK Inflation Rises to 2.9 Percent as Energy Costs Threaten Economic Recovery
NHS Hospitals Cancel Surgeries as Extreme Heat Pushes Ward Temperatures Above 40 Degrees Celsius
UK Heatwave Forces Emergency Measures as Wildfire Risk, Hospital Disruption and Drought Intensify
A Sleepless Night on Wall Street: Nasdaq to Begin Nearly Round-the-Clock Trading
"The First in the World": 69-Year-Old Protested Artificial Intelligence—and Went to Jail
Ukraine's Ousted Defence Minister Calls for Wartime Presidential Election
UK Marks Ten Years of Night Tube as London Weekend Usage Exceeds Eighty-One Thousand Journeys a Night
Met Office Issues Thunderstorm Warnings Across Northern Ireland Over Flash-Flood Risk
Frasers Group Raises Stake in Hugo Boss to Nearly Forty-Eight Percent
Scottish Clyde Marine Pilots Prepare for Strike That Could Disrupt Glasgow and Greenock Shipping
Twenty Passengers Injured After Southern Train Derails Near Lewes in East Sussex
Government Rules Out High-Speed Rail Revival Between West Midlands and Northern England
West Midlands Bus Network Returns to Public Ownership in Twenty-Four Million Pound Deal
UK Competition Watchdog Targets Trainline, Virgin Atlantic and RED Driving School Over Drip Pricing
Northern Ireland Health Minister Mike Nesbitt Resigns After Dispute Over Causeway Hospital Surgery Closure
UK Long-Term Government Bond Yields Rise to Five Point Eight Five Percent as Borrowing Costs Surge
UK Government Overhauls Planning Rules to Push Housing Development Near Major Transport Hubs
UK Health and Economic Pressures Highlight Wider Strain on Households and Public Finances
UK Prime Minister Andy Burnham Reaffirms Full Support for Ukraine Amid Russian Warnings
Sainsbury’s Suspends Live Facial Recognition at London Store After Customer Misidentified
Artists Urge UK Prime Minister Andy Burnham to Reject New North Sea Oil and Gas Licensing
UK Government Awards Four Hundred and Fifty-Six Million Pound Civil Service Training Contract to EY and KPMG
×