What percentage of retail shut down each year in Sydney

There is no single percentage for "retail shutdowns" because data is tracked in two distinct ways: business exit/failure rates (companies closing) and retail vacancy rates (physical storefronts staying empty).

Here are the key metrics for Sydney and Australia:

1. Annual Retail Business Exit Rate: ~12% – 14%

According to Australian Bureau of Statistics (ABS) data on business entries and exits:

 * Annual Exit Rate: Across Australia (and mirrored closely in NSW/Sydney), around 12% to 14% of active retail trade businesses close down or deregister each year.

 * Net Loss: In recent years, the overall count of registered retail businesses has shrunk by about 0.4% annually, meaning slightly more retail businesses exit the market than new ones open to replace them.

2. Physical Retail Store Vacancy Rate: ~4% – 7%

While store closures happen constantly due to economic pressure, high rents, and online shift, physical shopfronts rarely remain vacant for long:

 * Shopping Centres: The overall shopping centre vacancy rate across Sydney and major metro areas sits around 4.4%. Large regional centres have vacancies as low as 2.0%.

 * Sydney CBD & Strip Retailing: High street strip shops and central Sydney CBD centers carry slightly higher vacancy rates (5% to 8% depending on the precinct), but landlords generally backfill closed spaces quickly with food & beverage, services, or new brands.

3. Small Business & Hospitality Vulnerability

 * New Businesses: First-year failure rates for retail and hospitality startups are significantly higher, with roughly 20% failing in year one and up to 50%–60% exiting within three years.

 * Cafes & Food Services: In Sydney’s broader retail/hospitality ecosystem, food and beverage operations experience elevated exit rates, with over 10% of cafes and restaurants closing annually during periods of high cost-of-living pressure.

There is no single percentage for "retail shutdowns" because data is tracked in two distinct ways: business exit/failure rates (companies closing) and retail vacancy rates (physical storefronts staying empty).

Here are the key metrics for Sydney and Australia:

1. Annual Retail Business Exit Rate: ~12% – 14%

According to Australian Bureau of Statistics (ABS) data on business entries and exits:

• Annual Exit Rate: Across Australia (and mirrored closely in NSW/Sydney), around 12% to 14% of active retail trade businesses close down or deregister each year.
• Net Loss: In recent years, the overall count of registered retail businesses has shrunk by about 0.4% annually, meaning slightly more retail businesses exit the market than new ones open to replace them.

2. Physical Retail Store Vacancy Rate: ~4% – 7%

While store closures happen constantly due to economic pressure, high rents, and online shift, physical shopfronts rarely remain vacant for long:

• Shopping Centres: The overall shopping centre vacancy rate across Sydney and major metro areas sits around 4.4%. Large regional centres have vacancies as low as 2.0%.
• Sydney CBD & Strip Retailing: High street strip shops and central Sydney CBD centers carry slightly higher vacancy rates (5% to 8% depending on the precinct), but landlords generally backfill closed spaces quickly with food & beverage, services, or new brands.

3. Small Business & Hospitality Vulnerability

• New Businesses: First-year failure rates for retail and hospitality startups are significantly higher, with roughly 20% failing in year one and up to 50%–60% exiting within three years.
• Cafes & Food Services: In Sydney’s broader retail/hospitality ecosystem, food and beverage operations experience elevated exit rates, with over 10% of cafes and restaurants closing annually during periods of high cost-of-living pressure.