Nightclubs are struggling to survive in Caerphilly County Borough as party-goers abandon the dancefloor in search of new nights out, data reveals.
Industry experts say the night-time economy is under pressure as cheap alcohol prices in supermarkets have encouraged drinking at home.
There were 40 licensed clubs in Caerphilly in 2018, down from 45 in 2013, according to the latest Office for National Statistics figures.
The data includes nightclubs, and any social and working men’s clubs that are licensed to sell alcohol.
More nightclubs may go, according to market research group IbisWorld, as companies focus their efforts on expansion in other industries.
Ashley Johnson, industry analyst at IbisWorld, said: “Many consumers purchase cheap supermarket alcohol to drink before going out rather than buying more expensive drinks in clubs, constraining industry revenue.
“Efforts to revive alcohol sales by offering cut-price drinks have been unable to fully compensate for this fall.”
A recent IbisWorld report highlights that licensing changes in 2005 have allowed pubs and bars to stay open later, taking nightclub customers.
Across Wales, the number has fallen by 16% since 2013.
Martin McTague, policy chairman of the Federation of Small Businesses, said: “A major issue for this industry are the sheer number of burdensome regulations that are adding huge costs to businesses.
“The night-time economy is worth billions to the UK, but firms are being faced with strict licensing laws, rising insurance costs, ever-increasing business rates on top of burgeoning employment costs and other liabilities.”
To avoid identifying individual clubs, the ONS has rounded the numbers.