London Daily

Focus on the big picture.
Thursday, Nov 05, 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
Department for Business and Trade Overhauls Protection Standards for Digital Animation and Moving Image Files
Intellectual Property Office Introduces Thirty-Month Grace Period for International Product Launches
Intellectual Property Office Targets Anti-Competitive Filings With New Powers to Verify Novelty Before Registration
Creative Industries Minister Ian Murray Praises Regulatory Reforms to Safeguard Small Businesses and Micro-Enterprises
Government Unveils Major Design Framework Overhaul to Protect British Creators and Boost Economy
Global Asset Management Reports Surge in British Dividend Payouts Driven by Strong Financial and Mining Sectors
HM Treasury Confirms Strongest Group of Seven Growth Figures as Fiscal Consolidation Plans Progress
Department for Energy Security and Net Zero Approves Construction of New North Sea Offshore Wind Hub
Northern Ireland Executive Finalizes Public Sector Pay Agreements Following Months of Inter-Agency Negotiations
Welsh First Minister Eluned Morgan Secures Cross-Party Support for Regional Clean Energy Infrastructure Bill
Competition and Markets Authority Launches Formal Investigation Into Dominant Artificial Intelligence Cloud Partnerships
United Kingdom Foreign Secretary David Lammy Concludes High-Level Diplomatic Mission to Washington and Ottawa
Scottish Government Announces Emergency Housing Investment Package to Address Escalating Urban Homelessness
Chancellor Rachel Reeves Finalizes Corporate Tax Adjustments Ahead of Upcoming Business Investment Summit
National Health Service England Unveils Emergency Winter Resilience Plan to Combat Projected A&E Overcrowding
Bank of England Monetary Policy Committee Votes to Hold Base Interest Rate Steady at Four Point Seven5 Per Cent
UK Gross Domestic Product Expands by Zero Point Four Per Cent in Third Quarter Driven by Resilient Services Growth
Northern Ireland Executive Agrees on Multi-Year Public Sector Pay Restructuring Framework at Stormont
Department for Transport Confirms Acceleration of Electric Vehicle Charging Infrastructure Rollout Along Strategic Motorways
Welsh Government Announces Emergency Funding Package to Support Agricultural Sector Facing Severe Weather Impacts
High Court Rules in Favor of Environmental Coalition Over Government Carbon Reduction Plan Deficiencies
Office for National Statistics Reports Stable Retail Sales Growth Supported by Strong Digital Commerce Volumes
Scottish First Minister John Swinney Secures Cross-Party Support for Renewable Energy Export Expansion
National Health Service Digital Reports Major Breakthrough in Reducing Elective Waiting Lists Across England
Chancellor Rachel Reeves Outlines Infrastructure Spending Reforms to Boost Regional Economic Growth Across Northern England
Bank of England Holds Baseline Interest Rate at Five Percent Amid Persistent Core Inflation Pressures
House of Lords Advances Representation of the People Bill to Modernize Electoral Law Ahead of General Election
Financial Markets and Private Equity Assess Tax and Corporate Realignment Following Recent Chancellor Budget Adjustments
Justice Committee Warns Legal Aid Is a Service in Managed Decline Due to Inadequate Government Funding Responses
Royal Navy Intercepts Russian Intelligence Vessel and Warships Across Intensive North Sea Operations
Business and Trade Committee Slams Government Policy on China as Fragmented and Lacking Strategic Direction
Home Secretary Shabana Mahmood Softens Immigration Plans Following Intensive Cabinet Backlash Over Settlement Timelines
Automotive Industry Data Reveals Continued Acceleration in Battery Electric Vehicle Registrations Across British Dealerships
High Court of England and Wales Rules on Landmark Legal Challenge Regarding Local Government Housing Mandates
Department for Energy Security and Net Zero Approves Expanded Offshore Wind Infrastructure Along Scottish Coastline
Competition and Markets Authority Launches Broad Investigation Into Artificial Intelligence Infrastructure and Cloud Partnerships
United Kingdom and European Union Launch High-Level Preparations for Bilateral Defense and Security Summit in Brussels
National Health Service England Unveils Emergency Workforce Reforms to Alleviate Winter Accident and Emergency Pressures
Chancellor Rachel Reeves Finalizes Autumn Budget Adjustments to Meet Fiscal Rules and Fund Public Services
Bank of England Prepares for Interest Rate Decision Amid Rising Bond Yields and Inflationary Pressures
House of Lords Begins Detailed Legislative Scrutiny of Representation of the People Bill and Cyber Security Laws
Metropolitan Police Detain More Than Three Hundred Individuals Following Large-Scale Demonstration Outside London Embassy
Home Office Prepares Stricter Residency Rules Requiring Vulnerable Migrants to Wait Decade for Settlement Rights
Professional Mental Health Bodies Demand Statutory Regulation for Counsellors and Psychotherapists
National Grid Confirms Construction of Britain's Largest Electrical Substation to Power Teesside Data Centre
Prime Minister Keir Starmer Travels to Samoa for Commonwealth Summit Amid Debates on Economic Cooperation and Reparations
Home Office Implements Enhanced Digital Border Controls and Visa Processing Systems at Major Airports
Office for National Statistics Reports Stable Employment Participation Rates Across Regional Labor Markets
Department for Business and Trade Announces Strategic Partnership to Secure Critical Mineral Supply Chains
Scottish Government Unveils Regional Economic Development Strategy to Boost Advanced Manufacturing in Glasgow and Dundee
×