Britain’s crumbling storefronts: UK loses 6,000 retail outlets in five years amid Covid lockdowns and ‘crippling business rates’ – with the North and Midlands worst affected
- Vacancy rate for high streets now stands at 13.9 per cent, up 0.1 per cent
Six thousand shops have closed down in Britain in the last five years and the overall vacancy rate has increased since the start of the year, according to the British Retail Consortium.
‘Crippling’ business rates and the impact of lockdowns during the coronavirus pandemic have played a key role in decisions to close stores and to be cautious about new openings, chief executive Helen Dickenson said.
Figures released for the second quarter of this year show that the vacancy rate for the UK’s high streets now stands at 13.9 per cent, up from 13.8 per cent in the first three months.
The volume of empty retail sites in shopping centres remained unchanged at 17.8 per cent. The rate for retail parks fell from 8.7 per cent to 8.1 per cent, continuing a downward trend.
The North-East of England was the worst affected area for empty shops, with a 17.5 per cent vacancy rate.
This was followed by Wales on 17 per cent, Scotland and the West Midlands on 15.9 per cent and and the North-West of England with a 15.3 per cent vacancy rate.
The vacancy rate in London – the lowest overall – has decreased from 11.1 per cent in the first three months of this year and in the second quarter of last year to 10.8 per cent up to the end of June.
The South East of England’s vacancy rate stands at 11.4 per cent, up from 11.3 per cent in the first quarter, but down from the second quarter of last year, when it was 11.7 per cent.
The vacancy rate for the East of England is now 13 per cent, an increase of 0.2 per cent compared to the first three months of the year, but a slight drop compared to last year.
The figures also show how the vacancy rate was fairly stable until the first coronavirus lockdown was imposed in March 2020.
LONDON: Oxford Street’s Mango store is pictured in 2020 (left) and boarded up in March (right)
The BHS store that once stood in Victoria Square in Bolton (left) is now boarded up (right)
An HMV store in Bolton (left) is another victim of the death of the high street (right, now)
Thomas Cook in Bolton (left) is another store that has since been lost and is now empty (right)
Other shops that were once open and serving customers in Bolton (left) and now closed (right)
A building used by a company selling blinds in Bolton (left) is now boarded up (right)
It remained below 13 per cent from 2018 until the lockdown, after which it peaked at 14.5 per cent and then only dipped back down as far as 13.8 per cent at the end of last year.
It remained at that level until the figures released today showed how it is has creeped back up.
The figures come after experts told how the benefits of lockdown measures were a ‘drop in the bucket’ compared to the ‘staggering’ collateral costs imposed.’
The country entered a recession, with restaurants and pubs losing an estimated £1.7billion a week during the height of the crisis as thousands of shops were forced to shut.
BRC chief Ms Dickenson said: ‘The past five years saw Britain lose 6,000 retail outlets, with crippling business rates and the impact of the Covid lockdowns a key part of decisions to close stores and think twice about new openings.
‘The North and Midlands continue to see the highest amount of empty storefronts.
‘London’s vacancy rate remains the lowest, improving over the last quarter thanks to the opening of new flagship stores, more office workers, and tourists visiting the capital.’
‘To inject more vibrancy into high streets and town centres, and prevent further store closures, Government should review the broken business rates system.
‘Currently, there’s an additional £400m going on retailers’ bills next April, which will put a brake on the vital investment that our towns and cities so desperately need.’
This traditional shoe shop in Bolton (left) is another victim of the death of the high street
A row of buildings in the Greater Manchester town of Bolton (left) has been demolished (right)
A William Hill betting shop in Bolton (left) has also closed with the shutters pulled down (right)
The old Bolton Technical School building (pictured still in use, left) is now empty (right)
Local estate agents Brigfords in Bolton (left) has since closed with the shutters pulled (right)
The Regis salon at Bolton in Greater Manchester (left) has since closed (right)
The William Hill next to Newport Arcade in Bolton (left) has since closed (right)
A Coral betting shop (left) is among the shopfronts now boarded up in Hartlepool (right)
The Co-operative Pharmacy previously seen in Hartlepool (left) is no longer there (right)
A Chambers Health and Beauty pharmacy in Hartlepool (left) has now closed (right)
A fishmongers in the town of Hartlepool called Harlow’s (left) has also since closed (right)
WIGAN: Marketgate shopping centre, when it was open in 2016 (left) and now closed (right)
SOUTH SHIELDS: The High Street’s Burton store has closed, seen in 2017 (left) and now (right)
MARGATE, KENT: The town’s old Primark store is seen as it was in 2013 (left) and now (right)
She welcomed the Government’s announcement earlier this month that changes of use to vacant units would be made easier, but said it should go ‘one step further’ and ‘freeze rates and bills next year’.
Lucy Stainton, commercial director at the Local Data Company, said: ‘The headline findings from Q2 are unlikely to have come as a surprise to anyone, with economic pressure from rising interest rates and inflation already mounting as the year began.
‘Current challenges to businesses have been compounded by tightening discretionary spend and a dip in confidence among consumers.
‘The economic headwinds that have made the headlines have filtered into the data, reflected in a slight rise in the overall vacancy rate.
‘The high street has seen some of the most notable impacts, with rising rents and increased competition putting pressure on small and independent businesses, who may struggle to meet high operating costs.
‘Across all location types, vacancy has reached critical levels, highlighting an ever-increasing need to redevelop units to breathe life back into retail destinations.’
She added that no improvement in the vacancy rate is expected in the near future.
‘However, given that the latest rises in vacancy have not been particularly significant, we anticipate that any increases in the near future will be gradual,’ she said.
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