BRC urges government action as store vacancies soar

In the final quarter of last year, shop vacancy rates across the UK hit 13.7%, up from 13.2% in the third quarter and 1.6 percentage points higher than the same period in 2019, according to the BRC-LDC data. 

While all retail destinations saw vacancies rise during the period, shopping centres were hit particularly hard, with the proportion of empty units reaching 17.1%. 

High street vacancies jumped to 13.7% nationwide, while retail park vacancies hit 10% in the quarter. 

BRC chief executive Helen Dickinson warned the Government that, without an extension to the existing business rates holiday, which expires at the end of April, more stores would close and tens of thousands more retail jobs would be lost. 

The Scottish government yesterday revealed plans to extend its business rates holiday for companies operating North of the boarder for a further three months, but retailers want that move replicated in England. 

“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,” 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. Social restrictions and their knock-on effect on consumer appetite for fashion has meant that shopping centres are still faring the worst due to their high proportion of clothing outlets.

“What’s more, due to economic uncertainty, many retailers have paused their plans for future investment in new stores.

“If the government wants to avoid unnecessary shop closures and the loss of tens of thousands of jobs, it must urgently extend the business rates relief beyond April, providing additional targeted financial support to the hardest-hit retailers, and extend the moratorium on aggressive debt enforcement.

“Without these interventions, not only will retail firms go under, but the vibrancy of our town centres and local communities across the country will be lost.”

Retailers have become increasingly concerned about the prospect of business rates repayments beginning again in full from April, despite many ‘non-essential’ retailers having been forced to close before the crucial Christmas trading season and still not being allowed to open stores. 

Speaking to Retail Week, Waterstones chief executive James Daunt warned he would be forced to close stores if the business rates holiday was not extended. 

The prime minister announced earlier in the week that he would not be opening schools again until at least March 8, which would indicate that a timeline for non-essential store reopenings may go beyond that.