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Empty High Streets Sign of Wider Problems
Listed under: News
Published: Friday, June 19, 2009
The rapidly increasing rate of shop closures over the past few years has been caused by a number of long standing issues and not just the recession, says a recent report from industry expert Retail Think Tank (RTT).
The findings – which reveal vacancy levels were on the rise long before the economic downturn, accounting for approximately ten percent of all retail spaces – suggest increased competition, higher parking rates and tougher Government legislation have been the biggest obstacles to overcome, with the recession merely exacerbating the difficulties.
Commenting on the report, Phil McCabe of retail advisory association the Forum of Private Business (FPB), says, “There are some very draconian and restrictive measures when it comes to parking charges and waiting times, with the abolition of empty rate property relief and increasing rates and rents also causing a lot of small businesses to close.”
Hayley West, who runs craft store Little Lou's Craft Supplies in Worcester, agrees the recession is not the only factor to blame, adding, “At the moment, things are definitely tough and while the economic downturn has certainly made things more difficult, I don't think it would be fair to say it's the only reason for the closures.
“The rise of home based companies, higher business rates and a decline in the number of shoppers visiting the high street are all factors to consider,” she continues. “And sadly, until those problems are fixed, I think an improvement in the economy is unlikely to see less businesses close.”
However, Mr McCabe is slightly more optimistic about the outcome, suggesting companies offering quality goods will beat the economic downturn hands down. “There are positive signs and in many places there are a lot of small businesses thriving because they can provide bespoke products that no one else can offer”’
It is currently estimated that one in seven UK shops – amounting to 135,000 businesses in total – will be vacant by Christmas 2009.
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The findings – which reveal vacancy levels were on the rise long before the economic downturn, accounting for approximately ten percent of all retail spaces – suggest increased competition, higher parking rates and tougher Government legislation have been the biggest obstacles to overcome, with the recession merely exacerbating the difficulties.
Commenting on the report, Phil McCabe of retail advisory association the Forum of Private Business (FPB), says, “There are some very draconian and restrictive measures when it comes to parking charges and waiting times, with the abolition of empty rate property relief and increasing rates and rents also causing a lot of small businesses to close.”
Hayley West, who runs craft store Little Lou's Craft Supplies in Worcester, agrees the recession is not the only factor to blame, adding, “At the moment, things are definitely tough and while the economic downturn has certainly made things more difficult, I don't think it would be fair to say it's the only reason for the closures.
“The rise of home based companies, higher business rates and a decline in the number of shoppers visiting the high street are all factors to consider,” she continues. “And sadly, until those problems are fixed, I think an improvement in the economy is unlikely to see less businesses close.”
However, Mr McCabe is slightly more optimistic about the outcome, suggesting companies offering quality goods will beat the economic downturn hands down. “There are positive signs and in many places there are a lot of small businesses thriving because they can provide bespoke products that no one else can offer”’
It is currently estimated that one in seven UK shops – amounting to 135,000 businesses in total – will be vacant by Christmas 2009.
What do you think? Email your thoughts to .(JavaScript must be enabled to view this email address)
