Shop vacancies rise to 14.6% in Q1 – LDC
The latest research from the Local Data Company indicates that vacancy rates for retail premises have continued to rise as the challenges for retailers continue. The only major change seen in the first quarter of this year, the LDC says, is “the increasing hold the banks have on many retailers and retail assets as refinancing takes place”. The firm says that this is a major issue and its “true impact” is still to be seen.
The national shop vacancy rate rose to 14.6% in Q1 2012, the LDC says, but there is the usual wide range of vacancy levels around the UK from 36% of retail premises in Kensal Town to 2% of retail property in Rickmansworth. Of the 205 town centres that the company visited during the first quarter, it says 34% have more empty shops than a year ago, while 10% have remained stable, and 56% have seen some improvement – albeit a small fall in vacancies in most of these town centres.
The LDC expects the gap between better-performing and weaker town centres to continue to widen this year, depending on local factors such as unemployment rates and levels of consumer spending, but also depending on what it terms “the fight between the high street, the shopping centre (in and out of town) and the edge/out of town retail park”.
The company warns that retailers in towns with low vacancy levels may still be encountering difficulties. “Low vacancy towns may appear to be healthy but if the retail offer is considered to be worsening in quality of offer, as the ongoing debate
around rising numbers of £ shops, pawnbrokers, bookmakers and charity shops highlights, then this can be just as detrimental to the long term prospects of a town as empty shops but of course councils will likely to be receiving greater business rate revenues!” the LDC adds.
The town centres with the highest vacancy rates were Kensal Town, Morecambe, Dudley, Fratton and Dartford. The best centres in terms of vacancies were Sherborne, St John’s Hill in Battersea, Woodford Green, Rickmansworth and Lincoln.
