Blackburn with Darwen has some of the' healthiest' high streets in the UK.
The borough ranked second out of 310 local authorities in the new Local Retail Health Index, compiled by money.co.uk.
This index measures the strength and growth of retail provision across England and Wales.
Joe Phelan, money.co.uk business savings expert, said: "Independent retailers have continued to face pressure from rising costs and reduced consumer spending, and the loss of nearly 3,000 local retail shops across England and Wales in a single year shows just how quickly high streets can unravel when footfall drops and investment stalls.
"Our analysis shows the picture is notably uneven.
"Some areas, including Blackburn, are performing strongly within the index, while others are continuing to struggle, creating a wide gap in retail performance across the country."
The index highlights that nearly 3,000 retail units were lost between 2024 and 2025, mostly in already struggling areas.
However, Blackburn with Darwen bucked the trend, adding 15 new retail units during the same period.
This brought the borough’s total to 58 shops per 10,000 residents, well above the national average of 41, and higher than cities like Birmingham, Nottingham, and Leeds.
Mr Phelan said such growth can have a wider impact.
He said: "These closures don't just affect individual businesses.
"They can reduce overall footfall and weaken town centres over time, creating a cycle that makes recovery and new investment harder to achieve."
Blackburn with Darwen’s success is supported by a £1 billion regeneration programme, which combines retail, skills, technology, and housing.
The strategy aims to reimagine the town centre as a mixed-use destination, rather than relying solely on traditional retail.
Newham topped the index as the number one area in England and Wales, followed by Blackburn with Darwen in second place, and Watford in third.
Other high-performing areas included Brent, Wandsworth, Derbyshire Dales, Islington, Leicester, Hounslow, and Oldham.
Mr Phelan said targeted investment is key.
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He said: "The gap between the strongest and weakest areas underlines the importance of sustained local and business investment in supporting long-term high street performance."
He also noted that in weaker areas, even small savings could be vital.
He said: "For all businesses, managing costs effectively is critical, but particularly so in weaker performing areas, where savings reinvested into the shopfront, staffing, or customer experience could potentially make the difference between closure and survival."
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