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Shop vacancies stabilise, but high street remains shakey

Shop Vacancies have stabilised nationally, but wide disparity in rates continue to affect an increasing number of centres.

The Local Data Company’s latest Shop Vacancy report, called “Good and Bad News!” reviews vacancy figures in over 700 town centres.

It shows prime centre ‘core’ areas remain healthy but secondary centres and outlying areas are struggling as multiple retailers exit for larger, out-of-town locations, or because of failure.

Independents are identified as underpinning the majority of town centres, accounting for 66% of occupancies.

Matthew Hopkinson, director at the Local Data Company commented: “The stable top line rate of 2011 hides the significant breadth in town centre vacancy rates up and down the country and the structural issues that are at stake.

“The reality is that the odds are stacked against a positive take up of shops and as such the new reality of 48,000 empty shops is here to stay unless an alternative use or purpose can be found.

“Technology is driving consumer behaviour to a world of engagement, entertainment and the ability to shop where, how and when we like.

“Town centres need to adapt to this changing environment if they are to survive and thrive.”

The report also touched upon struggling shopping centres, as the British Council of Shopping Centres estimates that one-fifth of UK shopping malls are in financial difficulties.

Broadmarsh centre in Nottingham was used as an example in failed redevelopment plans.

Liz Peace, Chief Executive of the British Property Federation, said: “Today’s figures show that while some high streets are thriving, others remain locked in a spiral of decline.

“To turn these areas around will be difficult and will need landlords, retailers and local authorities to work closely together to adapt to changes in the way we shop.

“There are a number of proposals on the table for tackling declining town centres, many from the Portas Review, and we believe it is vital to stop talking and get on with implementing them as quickly as possible.

“Bringing empty shops back into use by allowing conversion to residential is one that could be implemented quickly and easily.”

The greatest threat to the high street was identified as the growing online retailing sector, as the percentage of sales taken by Out of Town retailing has actually fallen over recent years.

Data shows that the proportion of retail spending captured by the high street is expected to fall 39.8% by 2014.

This was posted in Bdaily's Members' News section by Tom Keighley .