Shop vacancy rate hits worst level since 2015

More than one in 10 shops lay empty in July – 10.3% of units – the highest level since January 2015.

According to the latest data from the BRC and Springboard, footfall dropped 1.9% in July, compared to a 0.9% decline during the same month a year ago.

Shopping centres suffered the worst fall, at 3.1%, while footfall to high streets was down 2.7%.

Retail parks enjoyed an increase in shopper numbers, rising 1.2%.

Springboard marketing and insights director Diane Wehrle said July was a “much more challenging month” for high streets and shopping centres than out-of-town locations.

Wehrle said a portion of the decline in footfall to high streets was a result of “strong” comparables from last year, when footfall edged up 0.3%, and the July heatwave.

She added that retail parks were doing a better job of “bridging the convenience-experience gap” by offering “accessible shopping environments, free parking and easy click-and-collect opportunities”, combined with a wider offer of leisure, restaurants and coffee shops.

BRC chief executive Helen Dickinson added: “Retailers have faced a challenging environment this month, with declines in footfall on high streets and shopping centres.

“Sluggish sales growth and declining footfall also contributed to the rise in town centre vacancies, which rose to their highest level since January 2015. High streets and town centres play an important part in our local communities and we should be concerned about the rise in empty storefronts.

“If the government wishes to avoid seeing more empty shops in our town centres then they must act to relieve some of the pressure bearing down on the high street. Currently, retail accounts for 5% of the economy, yet pays 10% of all business costs and 25% of all business taxes. The rising vacancy figures show this is simply not sustainable.”