Home / Knowledge / News / Retail / UK shop prices fell 1.3% in April, vacancy rate at 14.1% in Q1: BRC

UK shop prices fell 1.3% in April, vacancy rate at 14.1% in Q1: BRC

04
May '21
Pic: Shutterstock
Pic: Shutterstock
Shop prices in the UK fell by 1.3 per cent in April, a slower decline than the 2.4 per cent decrease in March. This is above the 12- and 6-month average price decreases of 1.8 per cent and 2 per cent, respectively. Additionally, in Q1 2021, the overall shop vacancy rate increased to 14.1 per cent, from 13.7 per cent in Q4 2020, as per a recent report.

The vacancy rate was 1.9 percentage points higher than in the same point in 2020. This marks three years of increasing vacancy rates, from Q1 2018, according to the findings of British Retail Consortium (BRC).

“Falling prices are unlikely to last; in the months ahead, retailers will have to battle the cost pressures from Brexit red-tape, rising shipping costs due to international supply issues, as well as increasing global food and oil prices. As these costs filter through, retailers may be left with no option but to pass on some of these costs to consumers,” said Helen Dickinson OBE, chief executive, BRC.

"With the economy reopening we will start to see a rebalancing of consumer spend and it's good news that there is still shop price deflation. Looking ahead, with many households uncertain about their personal finances, if external cost pressures start to feed through then shoppers may become more price-sensitive over the next few months, as lifestyles are adapted to a new normal,” said Mike Watkins, head of retailer and business insight, NielsenIQ.

Talking about the vacancy rate, Dickinson said: “The forced closure of thousands of shops during the first quarter of 2021 has exacerbated already difficult conditions for the retail industry. We estimate there are around 5,000 fewer stores since the start of the pandemic, meaning 1 in 7 shops now lie empty. Shopping centres, many of which have been forced to close for a large portion of this pandemic, have fared worse than other retail locations, with over 12 per cent of units lying empty for a year or more.

“With full business rates relief and the moratorium on aggressive debt enforcement ending in England this summer, many stores may never reopen. The government must ensure the ongoing business rates review leads to reform of the broken system and permanently reduces the cost burden which is leading to unnecessary stores closures and job losses.”

The number of vacant units has continued to increase in the first three months of this year across the country, despite much of the market being temporarily closed for during the third lockdown. A number of household names announcing further store closures or indeed, disappearing from high streets entirely shows how challenged physical retail continues to be, said BRC.

“Shopping centres have been particularly exposed to the effects of the covid-19 pandemic, principally having a lower proportion of ‘essential’ retailing as well as being exposed to categories which are in decline such as fashion,” said Lucy Stainton, director of retail and strategic partnerships, Local Data Company.

“This being said, the early indications from the first few weeks of the ‘unlocking’ have shown there is still significant demand for physical retail. Hopefully, as consumer confidence continues to build momentum with reduced covid-19 cases, more of the population vaccinated and warmer weather, further fall out from the pandemic might be mitigated somewhat,” Stainton added.

Fibre2Fashion News Desk (KD)


Must ReadView All

Pic: Shutterstock

Textiles | On 8th May 2021

French Development Agency to invest $83m in Ivory Coast cotton sector

Over a period of five years, the French Development Agency (AFD) will ...

Pic: Juki

Apparel/Garments | On 8th May 2021

Japanese companies collaborate to develop sewing machine business

Juki Corporation and Pegasus Sewing Machine Mfg have entered into a...

Pic: Rocky Brands

Apparel/Garments | On 8th May 2021

Rocky Brands expands Made in America capabilities

Rocky Brands has expanded the offering of its Made in America product ...

Interviews View All

International apparel brands, Head honchos

International apparel brands
Head honchos

Launched first collection at onset of Covid

Textile Industry, Head honchos

Textile Industry
Head honchos

Wearables have very limited reach

Textile Industry, Head honchos

Textile Industry
Head honchos

Increased need for online fitting solutions as retailers shift to...

Mumin Can Eker,

Mumin Can Eker

Maseksport Inc is a readymade garment exporter. Founded in Izmir in 1989,...

Seema Mishra,

Seema Mishra

Set up in January 2020 by <b>Seema Mishra</b>, the Kasrawad Art Cluster...

Chendhuran Sundar,

Chendhuran Sundar

It manufactures and retails menswear garments in India under the brand...

Karan Bose, Hula Global

Karan Bose
Hula Global

Hula Global, a leading isolation gown manufacturer in India, has been...

Hemant Bheda, Arevo

Hemant Bheda
Arevo

Arevo, based in Silicon Valley in California, develops technology to...

Asif Rahman, MIP

Asif Rahman
MIP

MIP is a manufacturer and distributor of high-performance textiles and...

Abhishek Bajaj & Samiksha Bajaj, Samshek

Abhishek Bajaj & Samiksha Bajaj
Samshek

Samshek is a fashion forward tech brand which combines digital experience...

Ramya Rao & Kavea R Chavali, Kalaneca

Ramya Rao & Kavea R Chavali
Kalaneca

<div>The journey of Kalaneca (kala-Art, Neca- Nikaah) formally began in...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search