Skip to content
Search
AI Powered
Latest Stories

Vacancy reaches 'critical levels' amid store closures

Vacancy reaches 'critical levels' amid store closures
(Photo by DANIEL LEAL/AFP via Getty Images)
AFP via Getty Images

Approximately 6,000 shops have closed across the country over the past five years as vacancy rates reach “critical levels”, shows recent data.

According to the latest British Retail Consortium-Local Data Company (BRC-LDC) vacancy monitor, the overall vacancy rate increased to 13.9 per cent after rising by 0.1 percentage point in the second quarter of this year. The number of outlets lying vacant in shopping centres was worse at 17.8 per cent.


Geographically, the highest rates of empty storefronts in the second quarter were in the northeast, followed by Wales and Scotland. Greater London, the southeast and the east of England again had the lowest vacancy rates.

Helen Dickinson, chief executive of the BRC, said crippling business rates and the impact of the Covid lockdowns were a “key part of decisions to close stores and think twice about new openings”. Rising interest rates and inflationary pressures were also to blame.

Dickinson called on the government to review the “broken business rates system” to bring more vibrancy into high streets and town centres and prevent further store closures.

“Currently, there’s an additional £400 million going on retailers’ bills next April, which will put a brake on the vital investment that our towns and cities so desperately need.

“The government announcement about making changes of use to vacant units easier is welcome but it’s important local councils have a cohesive plan, and don’t leave gap-toothed high streets that are no longer a customer destination and risk becoming unviable. Government should go one step further and freeze rates bills next year," she said.

Lucy Stainton, commercial director at the LDC, said rising interest rates and cost pressures were among reasons for the increase.

“Vacancy has reached critical levels, highlighting an ever-increasing need to redevelop units to breathe life back into retail destinations,” she said. “Current challenges to businesses have been compounded by tightening discretionary spend and a dip in confidence among consumers.

“We do not foresee any improvements to vacancy rate in future. However, given that the latest rises in vacancy have not been particularly significant, we anticipate that any increases in the near future will be gradual.”

The recent data does not include the vacancy arising due to Wilko going into administration.

More for you

Sugro UK partners with Britvic to launch industry-first sample box

Sugro UK partners with Britvic to launch industry-first sample box

Leading wholesale buying and marketing group Sugro UK has collaborated with Britvic Soft Drinks, a global organisation with 39 much-loved brands sold in over 100 countries, to launch a groundbreaking Fast Food Sample Box.

The sample box is specifically designed for ICS UK LTD customers, giving them a unique opportunity to sample and experience new Fast Food soft drinks offerings firsthand.

Keep ReadingShow less
Plant-based ready meal

Plant-based ready meal brand on brink of collapse

British plant-based ready meal maker Allplants has filed a notice of intention to appoint administrators, citing ongoing financial losses, stated recent reports.

Allplants, known as the UK’s largest vegan ready meal brand, has faced mounting losses over recent years. Filing the notice provides the company with a critical window to explore options to avoid liquidation, such as restructuring, refinancing, or negotiating a sale.

Keep ReadingShow less
sottish retail-wholesale

Scottish retail-wholesale figure celebrated at University of Stirling graduation

Entrepreneur and businessperson Stanley Morrice, an influential figure in the retail and wholesale sectors, received an Honorary Doctorate from the University of Stirling at Stirling’s winter graduation held today (22).

Stanley, from Fraserburgh, is being recognised for his services to Scottish food, drink and agriculture. He entered the sector as a school leaver. In 1993, he joined Aberdeen-based convenience stores Aberness Foods, which traded as Mace. He rose to become Sales Director, boosting income by 50 per cent and tripling profits, and went on to be Managing Director, successfully leading the business through a strategic sale to supermarket group Somerfield.

Keep ReadingShow less
consumer cheer
iStock image
iStock image

Consumers cheer up as Budget nerves lift: GfK

British consumers have turned less pessimistic following the government's first budget and the US presidential election and they are showing more appetite for spending in the run-up to Christmas, according to a new survey.

The GfK Consumer Confidence Index, the longest-running measure of British consumer sentiment, rose to -18 in November, its highest since August and up from -21 in October which was its lowest since March.

Keep ReadingShow less
Retail Sales
Photo: iStock

Retail sales take bigger-than-expected hit in October

British retail sales fell by much more than expected in October, according to official data that added to other signs of a loss of momentum in the economy in the run-up to the first budget of prime minister Keir Starmer's new government.

The Office for National Statistics (ONS) said sales volumes have fallen by 0.7 per cent in October. A Reuters poll of economists had forecast a monthly fall of 0.3 per cent in sales volumes from September.

Keep ReadingShow less