Royal Bank of Scotland’s decision to close 162 branches across England and Wales will release more than 500,000 sq ft of high-street retail space.
Radius Data Exchange has calculated that the stores earmarked for closure total 532,000 sq ft, adding to the 6.7m sq ft of space that is definitely set to close already this year as a result of the raft of CVAs and administrations.
The North West will see the largest release of space, with 40% of the bank branches due to close totalling almost 200,000 sq ft of retail space.
The branches had been earmarked for a new “challenger bank” called Williams & Glyn. However, the project is no longer going ahead and the bank has reviewed its branch network.
Some 109 branches will close in late July and August 2018. A further 53 branches will close in November 2018.
James Child, EG retail analyst, said: “The traditional banking model of the past has come under increased scrutiny over the past few years. With the implementation of internet banking, the physical side of the business has become less important. While perhaps it may remain important to customers, all the leading banks have reduced branch numbers since 2011. The average branch size is 3,200 sq ft which could provide ample opportunity for a variety of independent retailers, or some of the more traditional stores, which could seek a return to the high street.”
An RBS spokesman said: “We are no longer launching Williams & Glyn as a challenger bank, and we now have two branch networks operating in close proximity to each other: NatWest and Royal Bank of Scotland, in England and Wales.
“As a result, we have had to review our overall branch footprint in England and Wales and we have made the difficult decision to close a number of Royal Bank of Scotland branches.
“Customers of Royal Bank of Scotland in England and Wales will be able to use NatWest branches instead for their everyday banking needs.”
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