Shop vacancies stabilise at 14.3% but worse to come in 2012

Published 07th Feb 2012

Shop vacancy rates have stabilised at 14.3% but the number of empty retail units is expected to rise again this year as consumers increasingly move away from the high street.

Research by the Local Data Company found that the majority of above average vacancy rates were in towns in the Midlands and North.

The worst affected town for retail voids was Stockport, where more than 30% of its shops are empty, while Nottingham, Grimsby, Stockton, Wolverhampton, Blackburn, Walsall and Blackpool all have vacancy rates of more than 25%.

The best performing town was St Albans which has a retail vacancy rate of 8.2%.

The British Council of Shopping Centres estimates that one-fifth of UK shopping malls are now in financial difficulties, with around 20 secondary shopping centres already on the market.

The proportion of retail spending captured by the high street has fallen from 49.4% in 2000 to 42.5% and is expected to drop further to 39.8% by 2014.

Matthew Hopkinson, director at the Local Data Company, said: “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.”

Liz Peace, chief executive of the British Property Federation, added: “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.”

Source: ' Property Week '

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