UK Retail: The Good, the Bad and the Ugly
By Helen Roxburgh - Thursday, September 08, 2011 7:59
More than 14% of UK shops remain vacant, according to a new report from the Local Data Company which highlights the stark polarisation of the UK’s retail market.
The Good, the Bad, and the (very) Ugly reviews the shop vacancy figures of over 1,000 retail centres, and finds that in the worst cases, one in three shops stand empty.
However, the data company says there is good news in that the three fold increase in vacancy rates seen since 2007 has finally stabilised at 14.5% during H1 2011. However, certain retail centres are still in dire straits.
The top 10 worst performing large centres are in the West Midlands, and the North, and seven out of the top 10 best large centres are in the South.
Stockport has a vacancy rate of 27.7% - an increase of 3.5% in the last six months, securing it as the worst performing retail centre in Britain, according to the LDC figures.
Blackpool and Grimsby have similarly high vacancy rates at 27.5%, Stockton-on-Tees has 27.4% of shops standing empty, and Bradford has a 26.8% vacancy rate,
Conversely, Bromley has a 9% vacancy rate and Camden Town has 9.2% of shops standing empty, at the other end of the table.
Matthew Hopkinson, director at the Local Data Company, said: “This report shows how fragile the British High Street is in parts of the country. The pressures it faces are increasing and therefore one needs to be realistic in one’s approach to each and every one of these towns if they are all to have a future.
“The stark reality is that Great Britain has too many shops in the wrong locations and of the wrong size. The diversity of shop vacancy rates is clear evidence that a local approach is required that ties in with consumer needs and the realities of modern retailing. The market still has significant corrections ahead and the impact of these will vary significantly according to location.”
Figures remain high even across the best performing regions, with all southern regions seeing an average vacancy at or below 11%. In the Midlands and North the vacancy rates range from just under 13% in the East Midlands to 16% in the North West.
Source: Local Data Company
Amongst the medium sized centres the situation is the same with the top ten centres all in London and the South, while eight out of the 10 worst-performing centres are in the North.
The only exceptions are Dartford with a vacancy rate of 26.3%, and Newport in South Wales with 26%.
The best performing medium-sized centres range from Sevenoaks with a vacancy rate below 5% to Falmouth at 6.6%
The report says that the overall vacancy figures are unlikely to dramatically improve in the short and medium term, due to the current economic climate, the rise of alternative sales channels and the number of shops the country has.
Liz Peace, chief executive of the BPF, said: “Many of high streets and town centres are in a critical, but stable condition. Their recovery is not just going to happen, but will need nursing. It will require investment from our sector, and the confidence that goes with a local authority that has leadership, a clear vision, and a willingness to plan and manage their retail environment.
“We must also accept that some secondary retail units are no longer viable and plan their transition to other uses. Simply hurting successful retailing to level the playing field is not the solution. We must find new ways to get people on to our high streets and in our local shops.”
However, the report notes that there has been positive take up of new stores in certain sectors, namely convenience stores, discount stores, charity shops, bookmakers and pawnbrokers.
For more on this story, visit the CoStar Retail blog
hroxburgh@costar.co.uk