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Get your free copy20 June 2011, 19:15 PM
- The latest research has revealed that empty shops are becoming an increasingly common sight on the high street
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.
