UK HIGH STREET NEWS
Retail and leisure sectors show signs of stabilising following pandemic
18 March, 2022 | by
Angela BeeversNew analysis has found that the UK’s retail and leisure sector is stabilising following the impact of the Covid-19 pandemic.
According to a report released by Local Data Company, the UK saw the first half-year decline in vacancy rate since 2018 in the second half of 2021, although the leisure sector led the way with a record drop of 0.3% in the period.
The figures show that the national vacancy rate fell by 0.1% in the period from the first half of the year, coming in at 14.4% from a prior 14.5%. However, the national vacancy rate increased by 0.7% over the full year, although this figure is still lower than expected given the lack of activity in the first three months of 2021 due to the Covid-19 lockdown.
The retail vacancy rate hit a record high in 2021, but peaked in the first half of the year at 15.8%, with a 0.1% decrease recorded in the second half. LDC said the rate for the sector now sits at 15.7% and the company now expects this to decline further as more units are taken off the market for repurposing and as retailers return to acquiring new sites.
Shopping centres saw a 0.3% reduction in vacancy rate to bring their figure back down to 19.1% at the end of 2021. Meanwhile retail parks experienced a drop of 0.2% and the vacancy rate for high streets fell by 0.1%. However, high street vacancy rates were only up 2.3% on the second half of 2019, compared to increases of 3.2% for retail parks and 4.8% for shopping centres over the same period.
Lucy Stainton, LDC commercial director, said: “As we come into 2022, these latest statistics are cause for cautious optimism, with the number of empty shops finally coming down as consumers return to high streets and shopping centres.
“Our analysis points towards this trend continuing as the final shakeout from various CVAs and insolvencies is hopefully behind us and independent operators continue to open new sites.
“With many chains re-looking at their strategy for growth, the independent sector proving buoyant and an unprecedented level of repurposing and redevelopment, we could be seeing the start of a new phase of physical retailing and we will be tracking this very closely.”
