One In Seven High Street Shops 'Empty' As Trade Moves Online, Reports Local Data Company

Uk High Sreet

First Posted: 7/02/2012 05:18 Updated: 7/02/2012 05:18   PA

One in seven shops on the UK's high streets stood empty in 2011 and further closures are expected this year as more people shop online and in out-of-town centres.

Town centre vacancy rates stabilised last year at an average of 14.3%, or 48,000 shops, according to a report by the Local Data Company, despite a spate of high-profile retail administrations including Barratts, Jane Norman and The Officers Club.

But while some high streets are still thriving, particularly in the south of England, the report warned many centres are "locked in a spiral of decline".

With 2012 expected to see a further fall in consumer confidence, rising unemployment, the continued growth of supermarkets and the internet and uncertainty in bank lending, it predicts the vacancy rate will rise again.

It said the high street faces "structural issues", with the internet's share of the shopping market having doubled in the past 11 years and out-of-town centres also seeing growth, meaning that "there will be, if not already, too many shops on the high street".

Prime town centre locations have generally remained healthy but secondary centres in outlying areas have been the biggest losers as they struggle to compete with town retail parks and the internet

The report also confirmed a north-south divide in the health of high streets, with most of the locations with above average vacancy rates in the Midlands or the North.

Stockport was the worst centre with a vacancy rate over 30%, while Nottingham, Grimsby, Stockton-on-Tees, Wolverhampton, Blackburn, Walsall and Blackpool all had more than a quarter of shops empty.

Although York and Harrogate had vacancy rates below 10%, the best performing centres were mainly in the south and west. These included Exeter, Kingston, Camden, Cambridge, Taunton, Salisbury and St Albans, which was the best performer with an 8.2% vacancy rate.

The survey revealed that the squeeze in consumer spending was also hurting shopping malls, with one in five suffering financial difficulties.

LDC director Matthew Hopkinson said: "The stable top line rate of 2011 hides the significant breadth in town centre vacancy rates up and down the country and the structural issues that are at stake.

"The reality is that the odds are stacked against a positive take-up of shops and as such the new reality of 48,000 empty shops is here to stay unless an alternative use or purpose can be found."

Liz Peace, chief executive of the British Property Federation, said: "Today's figures show that while some high streets are thriving, others remain locked in a spiral of decline."

She added that it was vital for measures to save the high street, including those suggested by retail guru Mary Portas, to be brought in as soon as possible. Ms Portas's suggestions include national market days and more free parking.

British Retail Consortium director general Stephen Robertson said: "It's a small mercy that shop vacancy rates are not rising but they are still worryingly high in many locations.

"The government should be keeping down the cost pressures it is responsible for. Most urgently, it should reduce the eye-watering 5.6% business rates increase it plans to impose in April."

Local Government Minister Grant Shapps said: "It is clear that while some high streets are thriving, others face stiff competition from internet shopping and out-of-town shopping centres. That's why we already have responded rapidly to recommendations in Mary Portas's review on the future of high streets and will publish our full response in the spring.

"A new competition will give 12 town centres across the country the opportunity to become 'Portas Pilots', so they can benefit from government funding and expert support to breathe new life into their town centre. And later in the year markets across the country will hold a fortnight of special events, where they will lend their expertise to budding entrepreneurs who want to try their hand at running a business.

"The government has also scrapped Whitehall rules that instructed councils to hike parking charges, given councils new powers to cut business rates for local firms, and doubled small business rate relief, which will help half a million small firms for the next two-and-a-half years."

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One in seven shops on the UK's high streets stood empty in 2011 and further closures are expected this year as more people shop online and in out-of-town centres. Town centre vacancy rates stabilis...
One in seven shops on the UK's high streets stood empty in 2011 and further closures are expected this year as more people shop online and in out-of-town centres. Town centre vacancy rates stabilis...
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11:07 AM on 02/07/2012
Congratulations TESCO and ASDA
10:34 AM on 02/07/2012
nottingham will have more vacant shops when the workplace parking tax comes in, as i for one will not spend a penny within the city boundary.(no toilet humour please) If others feel the same as i am sure they do the city centre will become a ghost town. This is another example of greedy councils fleecing the workers.
11:48 AM on 02/07/2012
It's not so much greedy Councils, it's Councils struggling with sick party cuts. The septic dream.
10:20 AM on 02/07/2012
Stop winging - ther are factories which made gas mantles empty. The world moves on. Start converting them into much needed residential accomodation.
northern git
fed up with all the political crap in life
10:06 AM on 02/07/2012
business are going to have a very tough year and tthere will be a lot going to the wall.

thse in the high street will be harder hit as shoppers are squeezed (bonus getters wont count for much) and change their shopping habits looking to reduce their outgoins.

Then councils increase their business rates squeezing both sides

and then you have to pay for parking which reduces the spend

you have to pay for the privilege of spending your own money

of course we should not be surprised those that have money don't really give a damn

all in all it is a pretty lousy world we are living in
09:22 AM on 02/07/2012
More businesses will go bust this year, as they destroy them selves by employing more and more migrants who send money out of the economy. The old saying "we made it big by keeping it small" has been thrown to the wind. Supermarkets are one of the worst offenders for employing migrant workers in their depot's. Unemployment rising every week yet we still have immigration which is costing us all £billions in benefits and reducing the quality of life for us all, regardless of colour, religion, or culture it affects us all. Population is the biggest most important problem in the world today, here in the UK, we have set a very bad example, due to useless British dictators.
09:09 AM on 02/07/2012
remove the car parking charges as these have well doubled by were i live and i never go to the shopping centres no more.......................
08:29 AM on 02/07/2012
Getting a retail guru in is not the answer, rents and rates are far too high. Shop owners have to find thousands a month before they even open their doors, no wonder they are shutting up shop. (excuse the pun).

Yellow lines and parking restriction all over the town centers don't help either or the car parking charges which can be avoided by going to retail parks or shopping on-line. Councils have their offices in prime areas of towns or cities, move them out to the outskirts and free up that space for other ventures.
08:44 AM on 02/07/2012
I agree 100% you just missed out online shopping and thats the high Street finished!
09:11 AM on 02/07/2012
Absolutly, having had a high street shop the rates are ridicously high, with no parking or very expensive short term parking people head for the out of town shopping centres or shop online.
The amount of money you need to turn over just to pay the overheads in a small shop is staggering and if you your shop is in a seasonal tourist area god help you. Unfortunatly unless things radically change we will all be shopping online in the not too distant future
majdf18148
I have nothing to declare but my curiosity
08:04 AM on 02/07/2012
Saw a sign in the high street in the window of a shop selling camping gear. "Now is the winter of our discount tents" Lol it amused me! Nothing to do with the article just thought some of us needed a bit of cheer.
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GingerlyColors
No will to change it, no right to criticize it
07:27 AM on 02/07/2012
The rot started with the trend to pedestrianise many of our town and city centres, forcing motorists round frustrating one-way systems in order to keep cars away from the main shops. The problem has been exacerbated by the out-of-town shopping complexes which are car-friendly and usually offer free parking. While town centres decay, countryside is being consumed by these complexes. It is time to impose a moritorium on the building of out-of-town stores and rip up pedestrianised areas and allow cars back into our towns. As for internet shopping, going on-line has the tremendous advantage of being able to seek and purchase goods that never seem to be in high street shops and the result is that some shops will suffer. The main casualties have been travel agents and record shops. Thanks to the internet I have been able to obtain music that I wouldn't have had a fat cat in hell's chance of finding in any record shop.
08:49 AM on 02/07/2012
Yea I know what you mean our local small town allowed Tesco to build a store but only in Town, With easy access to other Shops and newly built roads, much better than the out of Town Store that Tesco wanted which would have killed the Town,
A lot of this is greedy Town Councils faults being swayed by big incentives (which you may know as backhanders lol)
That asside with the internet shopping available I suppose were all guilty of not supporting the High St!
cantabria
my default position is wrong
10:10 AM on 02/07/2012
That's all very well, but if shops like M&S don't stock clothes in size 8 (my wife) - they start mainly at 12, she can't shop there. I never understand people who run shops. They just seem to be idiots. The clothes cost pennies to make using chinese slave labour yet they charge £50 - £60 - £70 for a jumper. Burtons were doing a 75% off sale last week - I got £160 worth of clothing for £40 - I bet they still made money. We should be able to open shops wherever we want - in our own house - that way the rents would have to drop because people wouldn't need to pay them