Period covered: Q1 2020Published: May 08, 2020Read time: 10min

Shop unit vacancies monitor

Trouble Ahead for Retail Vacancy Rates

Helen Dickinson OBE, Chief Executive, British Retail Consortium:

“For some time retail parks have been faring better than High Streets and Shopping Centres as consumers took advantage of free parking and larger stores. The coronavirus pandemic is likely to exacerbate this disparity as most retail parks include large supermarkets which have remained open to meet the public’s needs. Despite Government support, it is likely that some stores may not be able to reopen after the lockdown is lifted, and the vacancy rate may rise sharply in the future as a result.

“With over three million retail jobs in the UK it is vital that as many firms are in a strong enough financial position to continue trading once lockdown is lifted. While the Government furlough scheme, loans and business rates holiday have provided an essential lifeline for thousands of retailers, stores continue to face fixed costs such as rent. To protect jobs and ensure the economy is able to get back on its feet in the coming months, it is vital that the follows the lead of other European countries and supports rents."

Lucy Stainton, Head of Retail and Strategic Partnerships, Local Data Company:

“The inaugural BRC-LDC Vacancy Monitor shows a consistent increase in the number of stores lying empty overall, which indicates that the UK now has more retail space than is necessary to meet our changing consumer habits. Given the pandemic, as well as the CVAs and administrations that have already taken place, plus the huge challenge to cash flow for all of the non-essential businesses forced to close, we are predicting that the vacancy rate will increase on a much steeper trajectory than originally anticipated this year.

“However, LDC data over the past few years has revealed that the independent retail space has proven more resilient than chain retailing. Might we expect to see the agility of these businesses, as well as a move to more localised shopping, continue to boost this sector, or will the onset of the financial challenges presented by COVID-19 overwhelm our independent retailers? With independents currently representing 64% of the total UK retail landscape, the impact on this corner of the sector will be hugely influential to the overall health of our high streets.”