The proposed store closures of struggling retailers Carpetright and Mothercare could create 8.35m sq ft of empty retail space when combined with other retail chain closures this year, according to EG data.
Carpertright and Mothercare stores mapped out.
Carpetright operates 397 UK stores, with an average floor plate of 8,662 sq ft across a 3.7m sq ft portfolio. Mothercare, which in January announced it would likely close 80 of its 152 operating stores, occupies around 1.4m sq ft.
Some 60% of Carpetright stores are in out-of-town retail parks, and the proposed closures could raise retail park vacancy rates following the announcement in February that Toy R Us would close all of its 105-store, 3m sq ft portfolio. Around 40% of Carpetright stores are in the South East and London.
Around 55% of Mothercare stores are in retail park, and 45% of its stores are in the South East and London.
This week shares in both Carpetright and Mothercare plunged by 14% and 12% respectively, after news that both retailers will cut jobs and stores in order to avoid administration.
Cause for concern
These latest figures follow recent CVA announcements from New Look, Toys R Us, Maplin and a number of high street restaurant chains.
At present, the amount of operational retail space lost to company administrations is 4.2m sq ft. This total rise to 5m sq ft when the potential Mothercare closures are included and could hit 8.35m sq ft if Carpetright closes all its stores as part of a CVA.
This is potentially the most retail space to flood the market since the collapse of BHS, Austin Reed, Blue Inc, Brantano and Store Twenty in 2016, which cumulatively relinquished 7.8m sq ft of A1 space.
And this is coming at a time when there is a large pipeline of retail space in development, with an estimated 27m sq ft of new space set to complete by the end of 2022.
This deluge of retail failures does little to allay investor fears of a lack of return on retail space, but despite this the market has remained resilient in 2017 and so far this year.
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