Skip to main content

Retail crisis deepens as shop vacancy rates jumps to 13.7%

// Latest vacancy monitor reveals 13.7% of all shops were empty in the last 3 months of 2020
// This is an increase on 13.2% in the three-month period before it, and the 10th month in a row of rising shop vacancies
// Shopping centres were the worst hit, with the vacancy rate jumping 17.1% from 16.3%

The UK retail sector’s recent turmoil worsened during the last three months of 2020 as more shops shuttered in the face of coronavirus restrictions, according to new figures.

The latest vacancy monitor from the BRC and Local Data Company revealed that 13.7 per cent of all shops were empty during the quarter to the end of December.

Vacancy levels jumped from 13.2 per cent in the previous three-month period, as the monitor reported the 10th consecutive quarter of rising vacancies.

READ MORE: 

The latest quarter saw shops impacted by lockdown measures across England in November and tighter tiered restrictions in December, before the latest national lockdown.

It was also a period blighted with more major high street casualties, with Topman and Burton parent company Arcadia Group sliding into administration and department store giant Debenhams entering liquidation.

Shopping centres saw a particular surge in shuttered stores, as the vacancy rate jumped to 17.1 per cent from 16.3 per cent in the third quarter.

High street vacancies increased to 13.7 per cent from 13.3 per cent in the previous period.

Meanwhile, retail parks remained resilient with a vacancy rate of 10 per cent for the past quarter.

“With the country in and out of lockdown, the forced closures of thousands of shops, and consumers reluctant to visit town and city centres, it is unsurprising that the number of shuttered stores continues to rise,” BRC chief executive Helen Dickinson said.

“Over the past two years, one in every 50 outlets has permanently closed and this number will only go up.

“The big increase in vacancy rates during the crucial golden retail quarter, when demand is usually high, serves as a stark reminder of the pandemic’s impact.”

She added that the UK Government “must urgently extend the business rates relief beyond April”, provide additional support to the hardest hit retailers and extend the lease forfeiture moratorium.

Lucy Stainton, head of retail and strategic partnerships at Local Data Company, said: “With recent announcements from the likes of Debenhams and Arcadia, the size of the stores coming on to the market will present a real challenge given the likely lack of demand for larger high street units.

“With a limited number of new store openings, structural solutions will need to be found to prevent these vacant units lying empty for two, three, four years or more.

“Looking further out, the increase in availability of space will provide opportunities for new businesses, however we must prepare ourselves for the picture to get worse before it gets better.”

with PA Wires

Click here to sign up to Retail Gazette‘s free daily email newsletter

The post Retail crisis deepens as shop vacancy rates jumps to 13.7% appeared first on Retail Gazette.



from Retail Gazette https://ift.tt/2NGEpix
via IFTTT
Labels:

Comments

Post a Comment

Popular posts from this blog

Eagle Labs launches impirica CBD brand

ST. PETERSBURG, Fla. — Eagle Labs has launched impirica, a new brand of CBD intended to eliminate consumer fear, and increase confidence, in trying the exciting new cannabidiol category. Michael Law Although most Americans have now heard about CBD, many are very confused and concerned about product quality. This is inhibiting trial in the category and holding back conversion into sales. In fact, a 2017 study by Johns Hopkins University found that two out of three CBD products on the shelf did not contain the amount of CBD reflected on the label. Furthermore, in 2018 and 2019, the FDA sent notices to a substantial number of CBD manufacturers advising them of serious concerns about product quality or egregious medical claims. The impirica brand looks different than most CBD brands — the brand name itself connotes testing and trust, says Eagle Labs chief commercial officer Michael Law. “It doesn’t use the traditional category colors of browns and greens, and you won’t find a hemp...
70 comments
Read more

Sagar Daryani, CEO and Co-founder – Wow! Momo & Saga: From a Kiosk to a Kingdom

Sagar Daryani’s entrepreneurial odyssey from humble beginnings to pioneering success has redefined the landscape of food startups in India. Co-founding Wow! Momo, he has spearheaded the growth of the largest indigenous QSR chain in the country, crafting a remarkable saga of triumph The Genesis: A Visionary Venture Takes Root In 2008, armed with a mere Rs. 30,000 and boundless ambition, Sagar Daryani and Binod Homagai embarked on their entrepreneurial journey while still pursuing their graduation in B.Com Hons from St. Xavier’s College, Kolkata, even before their college results were out. They knew the value for money and boot-strapped to plough back profits and grow their venture. Sagar spearheaded brand expansion, brand creation, and marketing and retail operations. Grew across the city with a strong consumer focus. The early days were hard but keeping track of the money flow was even harder. Believing in the concept of ‘1 rupee saved is 5 rupees earned’, and the lessons they lear...
1 comment
Read more

Homegrown ice cream chain HOCCO to open 250 stores, eyes Rs 400 crore by FY26

Ankit Chona, Founder and Managing Director of HOCCO, delves into the company’s revenue model, growth strategies, and vision for the future… Bengaluru: HOCCO (House of Chonas Collaborative) , the Ahmedabad-based ice cream and quick-service restaurant (QSR) chain, boasts a rich legacy spanning over 70 years, with roots tracing back to pre-independence India. The Chona family has been deeply entrenched in the food industry since 1944, originally operating in undivided Pakistan. Following the Partition, Satish Chona , an engineer with British Overseas Airways Corporation, relocated from Karachi to India. After journeying through multiple cities, he ultimately settled in Ahmedabad, where he established his first QSR outlet in 1953. Three decades later, he expanded into the casual dining segment, launching a restaurant in Baroda while continuing the family’s ice cream manufacturing business. However, in 2017, the company sold its ice cream division to a South Korean firm, shifting its fo...
Post a Comment
Read more