The cheapest cities to open a brick-and-mortar store in the UK

In a recent study examining the most cost-effective locations for establishing brick-and-mortar stores in the UK, Nottingham has emerged as the top choice for entrepreneurs. The research, conducted by business credit card experts at Capital on Tap, considered various factors including retail space costs, handyman rates, internet expenses, and parking availability.

Nottingham's appeal stems from its combination of affordability and accessibility. With an average monthly retail space cost of 1.10 pounds per square foot and a purchase price of 105.64 pounds per square foot, the city offers an attractive environment for new businesses. Additionally, Nottingham's high unemployment rate of 6.5 percent suggests a readily available workforce for retail ventures.

Cardiff and Coventry follow closely in the rankings, presenting their own unique advantages. Cardiff boasts expansive parking facilities and competitive retail space costs, while Coventry offers even lower rental rates and a substantial unemployed workforce.

Plymouth stands out as the most affordable location to purchase retail space, with prices as low as 19.90 pounds per square foot. This coastal city also offers attractive rental rates and economical internet costs, making it a compelling option for budget-conscious business owners.

At the opposite end of the spectrum, London unsurprisingly ranks as the most expensive city for setting up a brick-and-mortar shop. The capital's retail space comes at a premium, with purchase prices reaching 416.98 pounds per square foot, significantly higher than any other city in the study.

This research comes at a time when the UK's retail landscape is showing signs of change. According to the Office for National Statistics, online sales have declined by 10 percent since the COVID-19 pandemic, potentially creating new opportunities for physical stores.

Alex Miles from Capital on Tap highlights the importance of careful planning when establishing a brick-and-mortar presence. While the study provides valuable insights into cost considerations across different UK cities, entrepreneurs are advised to consider additional factors such as local market conditions, foot traffic, and target demographics when choosing a location for their retail venture.