UK retail stabilises in Q2, but Local Data Company outlook still cautious
The latest research from the Local Data Company shows that there is a very wide range in shop vacancy levels across the UK. The LDC visited 400 town centres and out-of-town retail parks and shopping centres during the second quarter of 2011 and found vacant retail property levels ranging from 40% at Rawtenstall to just 1% at Winton near Bournemouth.
“These extremes appear in many aspects of a centre,” says the LDC. “For example, the number of independent shops as a percentage of the total in Barnoldswick is 90% whilst the percentage of multiple (chain) shops in Salford is over 70%.”
While the closure of outlets by multiple retailers hit the headlines during the quarter, the LDC has noted an improvement in the level of opening of independent retail premises from a low in 2008-2009. The national shop vacancy level remained stable during the quarter at 14.5%, as other sectors expanded, including supermarkets, betting shops, charity shops and pound shops. The LDC also points out that the announced closure of 4,500 shops in total by multiple retailers so far this year represents just 0.6% of the stock that it tracks.
Another reason why the overall vacancy level has remained steady is the increasing stabilisation of a large number of centres, with half of all the centres visited during Q2 reporting a change in vacancy levels within a +/– 2% band. However, the LDC cautions that churn data (showing openings and closures as a percentage of the total) indicates that the picture may be becoming more negative and the extremes in performance may be widening.
