One in seven shops now empty as shopping centre vacancies spike

The overall retail vacancy rate increased to 14.1% in the first quarter of 2021, marking a 1.9% uplift from the same period in 2020 according to the BRC-LDC Vacancy Monitor. 

This vacancy rate was up from the 13.7% recorded in the final quarter of 2020 and marks three consecutive years of rising retail vacancies.

It is estimated that today there are 5,000 fewer stores than there were at the start of the pandemic, with one in seven shops now empty.

Shopping centres recorded the largest increase in vacancies during the period, up to 18.4% compared with 17.1% the previous quarter.

High street vacancies rose to 14.1% in the first quarter of 2021, up from 13.7% the previous quarter and in line with the overall vacancy rate.

Retail parks were the strongest performer during the period, having registered a vacancy rate of 10.6% in the first quarter of 2021 compared with 10% in the final quarter of 2020.

In regional terms, vacancies in the Northeast stood at the highest level overall, up to 19.3% compared with 18.8% the previous quarter and 16.7% during the same period the previous year. 

On a quarterly basis, the West Midlands registered the sharpest increase in it vacancy rate, from 15.6% at the end of 2020 to 16.9% at the end of the first quarter of 2020.

Greater London vacancy rates were flat at 10.7%.

LDC director Lucy Stainton said: “The number of vacant units has continued to increase in the first three months of this year across the country, despite much of the market being temporarily closed during the third lockdown. 

“With this in mind, and despite these percentages increasing significantly, we would argue that we have not yet seen the true impact of this third lockdown and this will only be obvious once the market has had the chance to reopen fully. 

“This being said, the early indications from the first few weeks of the ‘unlocking’ have shown there is still significant demand for physical retail and eating out.

“Hopefully, as consumer confidence continues to build momentum with reduced Covid-19 cases, more of the population vaccinated and warmer weather, further fallout from the pandemic might be mitigated somewhat.”