Retail

UK loses 6,000 storefronts in 5 yrs, Q2 2023 vacancy rate 13.9%: BRC

30 Jul '23

2 min read

Pic: Shutterstock/Sorbis

Insights

The UK lost 6,000 storefronts in five years, the British Retail Consortium recently said.
It urged local councils to come up with a 'cohesive plan' to enliven shopping areas as businesses desert retail spaces.
The vacancy rate rose to 13.9 per cent in the second quarter this year.
It was 17.8 per cent for shopping centres and 13.9 per cent for high street.

The United Kingdom lost 6,000 storefronts in five years, according to the British Retail Consortium (BRC), which recently urged local councils to come up with a ‘cohesive plan’ to enliven shopping areas as the pandemic, the cost of living crisis and crippling business rates are causing businesses to desert retail spaces.

The overall vacancy rate increased to 13.9 per cent across Britain in the second quarter this year—a 0.1 percentage point drop on the first quarter, but 0.1 points up year on year (YoY), BRC’s Local Data Company (LDC) vacancy monitor found.

Shopping centre vacancies remain unchanged from the first quarter at 17.8 per cent, but high street vacancies increased by 0.1 per cent to 13.9 per cent.

“To inject more vibrancy into high streets and town centres, and prevent further store closures, [the] government should review the broken business rates system,” said BRC chief executive Helen Dickinson.

“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,” she said in a release.

“The government announcement earlier in the week 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 inviable. Government should go one step further and freeze rates bills next year,” she added.

Greater London, the south-east and the east of England maintained the lowest vacancy rates, with London improving over the last quarter, thanks to the opening of new flagship stores, more office workers, and tourists visiting the capital. The highest vacancy rates were in the north-east and the Midlands, followed by Wales and Scotland.

“Across all location types, vacancy has reached critical levels, highlighting an ever-increasing need to redevelop units to breathe life back into retail destinations. LDC director Lucy Stainton said.

“With the continuing trend in mind, we do not foresee any improvements to vacancy rates 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,” she added.

Fibre2Fashion News Desk (DS)

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