14.6% Of Retail Units Are Now Vacant
Posted by Louise Miles on
Fresh data from Local Data Company’s surveys of 2,700 UK retail destinations (out of a potential 4,400 total UK destinations), highlights the fact that high street vacancy rates have started to rise again.
The Local Data Company states that 14.6% of outlets are now vacant, and this indicates that approximately 50,000 units are now not currently open to business on the UK high streets – showing just how challenging the situation is on the ground.
This is due to a number of factors including out-of-town retail parks going by 36% over the last decade – much faster than the 13% rise in in-town stores.
Secondly, supermarkets’ share of sales rose from 35% to 43%, helped by a 14% rise in non-food sales. Last month, Sainsbury’s announced its aim for 45% of its sales to come from non-food items.
Thirdly, the internet now accounts for ten percent of retail sales and this is forecast to be 35% by 2020. Additional pressures include rises in business rates, rents, commodity prices and utility costs; and the lack of bank lending.
However while multiples are going for a smaller number of stores with larger footprints, the independents occupy more than 35% of the total floorspace, in smaller units.
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