Empty shop numbers continue to rise

The UK’s shop vacancy rates have slowed down during the first half of 2010, even though the rate continues to increase.

The Local Data Company’s figures also reveal that regional differences in the vacancy rates have become more apparent than ever before.

Thought to be the result of a combination of VAT increases, public sector cuts and fierce competition, town centre vacancy rates in the UK have risen from just over 12% at the end of 2009 to 13% at the end of June 2010, according to the LDC.

Matthew Hopkinson, business development director at the LDC, said: “Our latest report shows the reality of a slowed but still rising increase in shop vacancy rates across the country.”

Liz Peace, chief executive of the British Property Federation, said of the figures: “It’s encouraging to see high streets recovering in the south, but that glimmer of positive news does not hide the fact that retail markets elsewhere are struggling, and that consumer confidence is still fragile.”

Hopkinson also pointed to the study’s conclusion of a very clear north-south divide. He added: “While some centres, particularly central London and the South East, are showing stabilisation or improvement, others in the provinces are not."

The improvers include Bath, Guildford, central London, Cardiff and Liverpool, as the LDC report says: “While it is too early to describe these centres as coming out of recession, clearly their retail markets are getting better.”

Commenting on whether there is a true improvement in the retail market to come, Peace added: “Filling empty shops will never be easy or quick. Both banks and landlords need to show a proactive approach to managing property, while local authorities have a key role to play in promoting flexibility and innovation in areas suffering from a high number of vacancies.
 
“Of course, the problem is exacerbated by the continued imposition of empty property rates, which has forced landlords to pay money in tax they could have used to make their property more attractive to tenants,” she added.

The study also reports that comparison retailers are doing “significantly better” than convenience stores, which is contradicted by the figures which demonstrate that the convenience sector is taking the lead on the opening of new stores.

Iceland, as an example, will open 30 new stores this year while Asda’s ongoing purchase of 193 Netto stores will expand its smaller-store format later this year too.

For further information on the report click here

Jane Parkinson, 13.09.2010