Member Article

Shop vacancies on the increase

Britain’s shop vacancy rate is being driven by too many shops and the growing North-South divide, according to a report from the Local Data Company.

In the report, the LDC say consumer expenditure has fallen back to 2002 levels and online sales are being accelerated by mobile technology.

According to the LDC, the proportion of shops lying empty has increased in every region, apart from London between January and June.

The worst performing region was the North West with 20.1% vacancy, followed by the North East at 19.1%, and the West Midlands at 18.9%.

The data was criticised by the Association of Town Centre Management, who say the LDC’s criteria for town centre boundaries was out-of-date.

Martin Blackwell, chief executive of the ATCM, said, “The figures released by the Local Data Company regarding “Town Centre” vacancy rates are, we believe, fatally flawed. They use an out-of-date set of criteria for establishing town centre boundaries and, as a result, they don’t reflect the reality on the ground.

“In many locations, very significant changes have taken place that fundamentally render the figures released at best meaningless and at worst a brake on investment that might lead to a vicious circle.”

One of the worst performing large centres, according to the data, was Wolverhampton.

Kim Gilmour, operations director for Wolverhamton’s Business Improvement District WVOne, said, ‘It’s very disappointing to see Wolverhampton in the worst performing large centres – our own vacancy rate shows 17%, which is still high but anyone visiting Wolverhampton would not see one in four shops empty, which is what is being quoted.

“This gives a false negative impression. LDC appears to use different base data to us as we use the total number of ground floor units rather than just shops, and we believe our measure more fairly represents the true vacancy rate.

“It would be helpful if we could all work together and compare lists and city and town centre managers should have the right to challenge the figures.”

Matthew Hopkinson, director at the Local Data Company commented: “This report clearly shows the key economic and structural issues which are impacting town centres up and down the country. These issues still have some way to go before we see wide stability and positive change. Most importantly it shows that at the town level a widening gap in health exists between town centres depending on their location, offer and consumer profile.

“Fundamental national economic issues are being played out at a local level. An understanding of the impact of these changes, past and present, is the only way that concrete action can be taken to adapt to and plan for success.

“At worse it is about managing decline to enable alternative uses for a centre to take over and at best it is maintaining positive trends in the face of increasingly fierce

Liz Peace, Chief Executive of the British Property Federation, said: “Our towns face complex structural problems which are not going to be solved by tinkering around the edges.

“In many places, we need to have a complete re-think about how vacant property could be redeveloped into new uses. That will require flexibility on the part of local planning authorities, but equally an acceptance from the property industry and its investors and lenders that in many cases previous values simply cannot be maintained and new lower value uses are the only option.

“This will be challenging – and there will inevitably be some further business casualties – but the alternative is a period of steady, inexorable and irreversible decline with unacceptable social consequences.”

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