Number of empty shops falls as UK economy reopens

The number of shops standing empty fell in the first quarter, industry research showed on Friday, as the UK economy reopened following the worst of the pandemic.

According to the latest BRC-LDC Vacancy Monitor, the overall vacancy rate decreased to 14.1% in the first three months of the year, 0.3 percentage points down on the fourth quarter and only the second quarter of falling vacancy rates since the start of 2018.

All locations reported falls, with vacancies easing to 14.1% from 14.4% three months earlier on the high street and to 19.0% from 19.1% in shopping centres. In retail parks, the number of empty shops eased by 0.7 percentage points to 10.6%.

Helen Dickinson, chief executive of the British Retail Consortium, said: “The economy has fully reopened, with more city workers back in the office and more tourists out on the streets. This allowed some businesses to grow and invest in repurposing and reopening empty units, especially in retail parks and high streets.”

However, she acknowledged that the overall proportion of empty shops remained well above pre-pandemic levels, and warned of uncertainty ahead.

“Much as changed with the cost the living rising and the conflict in Ukraine damaging consumer confidence,” she noted.

Lucy Stainton, director at the Local Data Company, said: “Anecdotally, we are aware of rising competition for prime space, in both city centres and shopping centres, from both retail and leisure operators. This may lead to further polarisation in key locations as activity is concentrated in prime pitches, leaving more tertiary space behind.”