FINANCE: The high street is outperforming retail parks and shopping centres according to a new report from Deloitte.
The study, using Local Data Company research of 5,900 stores, found that just 20% of the highstreet stores left vacant by 27 high profile administrations since 2009 remain empty.
This compares with vacancy rates of 37% and 29% for space formerly occupied by these retailers at retail parks and shopping centres respectively.
The report found that discount stores account for one in five of all relettings of high-street shops left vacant by these high profile administrations in the last four years.
These lettings account for nearly 50% of the expansion in the discount retail sector since 2008.
Alongside this there has been strong expansion of convenience stores which account for nearly 12% of space acquired post-administration, according to the report.
Deloitte said pattern suggests a change in shopping habits inspired by the recession and mobile commerce, as the major supermarkets move the battleground in their “race for space” to the high street.
Ian Geddes, head of retail at Deloitte, said: “Historically, retailers have talked about “destination” shopping locations. However, different and more cautious consumer spending patterns have joined forces with a technology-powered convenience culture which demands that goods and services are available as and where the consumer demands.
“Rather than taking shoppers away, the internet is pushing people back to shops with the growth of “click and collect”. The evidence suggests that we may be entering a new era of “en route” shopping, powered by mobile shopping and the demand for collection points strategically located at a point between where the consumer is travelling from and to.”
However, charity shops, pawnbrokers and bookmakers showed limited interest in acquiring the shops in the study. According to the data, just 3% of shops post-administration have been occupied by charity shops and less than 0.01% have been turned into pawnbrokers or bookmakers.
Ian Geddes said: “It is likely that the rate of expansion by bookmakers may not be as aggressive as widely believed, with new openings often offset by closures. The growth in online and mobile gambling would appear to make any substantial long term growth in overall betting shop numbers unlikely.”
Shops (all types) in some regions have fared better than others, with Greater London (18% vacancy rate) and Scotland (37% vacancy rate) at opposite ends of the scale. However, across the UK the high street consistently outperforms retail parks and shopping centres.
Hugo Clark, director at Deloitte and author of the report, concluded: “The results of this research are surprising and seem to challenge a number of myths around the state of the high street. They would suggest that far from being dead, the high street appears to be showing great resilience and a capacity for reinvention. It seems that a structural shift is taking place with the high street emerging as an unexpected winner.”
bridget.oconnell@estatesgazette.com
