Over the past five years, the UK has witnessed the disappearance of around 6,000 shops from its high streets, as reported by David Connett.
Recent shop vacancy research underscores the plight of retailers, particularly smaller, independent stores, struggling under economic pressures. Earlier this month, record-breaking numbers of retailers were reported to be going out of business in Britain.
In the past year, insolvencies in the retail sector have surged by 56 per cent, reaching the highest level in almost a decade. Over 1,900 retailers faced financial distress in 2022-23, a significant increase from 1,243 in 2021-22. The figures surpassed those of the pandemic period when the closure of high streets due to restrictions forced many retailers to close their businesses.
Over the past year, insolvencies in the retail sector have skyrocketed by 56%, marking the highest level in nearly a decade. In the period of 2022-23, more than 1,900 retailers faced financial collapse, a significant increase from the 1,243 recorded in 2021-22. These figures have surpassed the impact of the pandemic when enforced closures of high streets led to many retailers having to close their doors.
According to the British Retail Consortium (BRC) Local Data Company (LDC) Vacancy Monitor, high street vacancy rates across Britain reached 13.9% in the past three months.
The North East of England and the Midlands recorded the highest high street vacancy rates, followed by Wales and Scotland. Meanwhile, shopping centre vacancies remained unchanged from the first quarter at 17.8%.
Retail park vacancies saw a decline to 8.1%, making it the healthiest retail location with the lowest vacancy rates. Greater London, the South East, and the East of England recorded the lowest vacancy rates, with the situation in London showing improvement due to the opening of new flagship stores and the return of more employees and tourists to the area.
Helen Dickinson, the chief executive of BRC, stated that Britain has experienced the closure of 6,000 retail outlets over the past five years. She pointed out that the burden of business rates and the consequences of the Covid lockdowns played a significant role in influencing decisions to close stores and reconsider new openings.
“To revitalize high streets and town centers and halt the ongoing store closures, the government must conduct a comprehensive review of the flawed business rates system,” stated Helen Dickinson, the chief executive of BRC.
“The upcoming £400 million increase in retailers’ bills next April will impede crucial investment that our towns and cities urgently require,” warned Helen Dickinson.
While the government’s recent announcement about facilitating changes of use for vacant units is a positive step, she emphasized the importance of local councils having a well-coordinated plan to prevent high streets from becoming less appealing to customers and risking economic viability. To further support retailers, Dickinson suggested the government should take the additional step of freezing rates bills next year.
“The current vacancy levels have reached a critical point, underscoring the urgency to revitalize units and rejuvenate retail destinations,” stated Lucy Stainton, the commercial director at the LDC.
This highlights the pressing need for redevelopment efforts to breathe new life into these areas and create vibrant retail spaces once again.