Member Article

Shop vacancies climb

The shop vacancy rate in the UK has grown to 11.3%, according to the latest research from the British Retail Consortium.

Footfall in the three months to October was 0.4% lower than a year ago, and on the high street, over the quarter footfall fell 0.9%.

According to the BRC/Springboard Footfall and Vacancies Monitor, Wales and North & Yorkshire were among the hardest hit regions, both displaying nearly 15% vacancy rates.

Stephen Robertson, British Retail Consortium Director General, said: “This new high in empty shop numbers really sets alarm bells ringing. It’s the worst vacancy rate since the survey began in July 2011 and confirms that financial challenges for both customers and retailers are far from over.

“Many retailers are battling stagnating sales and rising costs, and next year’s threatened business rates increase can only make matters worse. If the Government wants to breathe life back into our town centres and ensure the retail industry can play its full role in job creation it needs to freeze rates in 2013.

“It’s a little more cheering to see footfall suffering less than the previous quarter but shopper numbers were still no better than a year ago. The figures follow a similar pattern to our retail sales monitoring. September’s cold snap drew the crowds stocking up on warmer clothing. But, while the Olympics appears to have brought people out onto high streets, that didn’t translate into a surge in spending.”

Steve Booth, CEO, Springboard added: “There is no doubt that October had the most detrimental impact on retail footfall over the past quarter.

“Traditionally October is a difficult month for retailers, as school holidays are over and winter weather sets in, however the year-on-year drop in high street footfall this October was significantly better than the drop a year earlier. Furthermore, the quarterly figure has recovered significantly from the -5.5 per cent decline reported in high streets during the previous quarter, when the UK experienced unseasonably wet weather.

“Though the pace has slowed, the continued decline in footfall could be a factor leading to the 0.4 percentage point increase in vacancy rates. Temporary lets over the festive season may positively affect this figure in November and December and the awareness of increasing vacancy rates has encouraged landlords to become more flexible to try and alleviate this issue, as the heavy rate burden is an ongoing concern for retailers.”

Adam Stewart, marketing director at Rakuten’s Play.com commented: “It may be the golden quarter for retailers, but statistics from the British Retail Consortium out today suggest that the high street continues to bear the brunt of the economic downturn.

“The BRC found that 1 in 10 shops in UK town centres was empty in October. Combined with recent government delays in revising business rates on commercial properties, physical retail is becoming an increasingly challenging environment.

“As such, it’s more important than ever for retailers to invest away from the high street, ensuring a strong online offering and multi-channel proposition to build business growth.”

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