London retail closures drive UK vacancy rate to six-year high
Retail store vacancies have risen to the highest level in more than six years due to a swathe of closures during the coronavirus pandemic, with London faring the worst out of all UK regions.
The UK vacancy rate climbed to 10.8 per cent in July from 9.8 per cent in January, taking it to the highest level since January 2014 following recent widespread store closures.
Vacancies increased in six out of ten regions across the UK, with Greater London performing the worst due to a sharp drop in footfall in the centre of the capital.
London recorded a jump in its vacancy rate of nearly two-thirds, according to the latest data by Springboard.
Footfall in the capital has plunged during the coronavirus pandemic, as commuters and tourists have largely stayed away despite the easing of lockdown conditions.
However overall UK retail footfall strengthened for the third consecutive month in August, dropping 30.8 per cent compared to the previous year.
Visitor numbers were down 38 per cent in high streets, 33 per cent in shopping centres and 11.1 per cent in retail parks.
Retail parks have fared the best during the pandemic due to the concentration of supermarkets and the open-air format, which allows the easiest social distancing.
Springboard marketing and insights director Diane Wehrle said: “With Central London dominating Greater London in terms of footfall volume, this result brings into sharp focus the difficulties faced by large cities in attracting customers back and the impact of this on our bricks and mortar retail landscape.
“The importance of large cities in the ongoing evolution of bricks and mortar retailing needs to be emphasised.
“In 2019 regional cities across the UK attracted three times the volume of footfall compared to UK high streets, and these greater volumes of footfall are required to support new store formats and environments now demanded by shoppers.”