The number of empty shops in Britain continues to rise, with warnings that some high streets may never recover to their pre-recession state. According to the Local Data Company (LDC), town centre vacancy rates increased from 12% at the end of 2009 to 14.5% at the end of 2010, driven by structural changes in retail.
The study reveals a north-south divide, with northern England and the Midlands experiencing a 16.5% vacancy rate, well above the national average, while southern regions stand at 12.3%. Large towns have a higher average vacancy rate (16.5%) than smaller centres (about 12%), and the situation is worst in large town and city centres in the north and Midlands, where rates reach nearly 19%. Yorkshire and the Humber are even higher at nearly 21%.
In contrast, large centres in London, the south-east, the east and the south-west have rates around 14%, while Scotland has the lowest regional rate at 12.6%. Smaller centres in the north-west have the highest rate, exceeding 17%, followed by the north-east at 15%.
The LDC report notes fundamental structural changes in UK retail, with many multiple retailers migrating from high streets to shopping centres and out-of-town parks. The recession has hit hard, with chains like Woolworths, Zavvi and Borders closing without new tenants. Online sales growth has also taken its toll, with HMV planning to shut 60 stores and JJB Sports offloading up to 95 shops.
Liz Peace, chief executive of the British Property Federation, said many high streets will never return to their pre-recession days, urging local authorities to work creatively with businesses to find new uses for empty shops. Matthew Hopkinson of LDC added that certain areas are severely impacted and unlikely to recover, requiring town centres to adapt to modern shopping needs.
The British Retail Consortium (BRC) is calling for a “retail-friendly” budget next month, prioritising reform of the business rate system. Tom Ironside of the BRC stressed that high street retailing remains vital but needs active planning, management and investment to address costs, parking, access and crime.
