2013 Sees Shop Vacancy Rate Fall

Shop vacancy rates saw a slight fall throughout the country in 2013; however these numbers vary drastically from region to region. What do the latest figures on shop vacancy rates indicate about the rising number of small retail businesses?

This month the Local Data Company (LDC) released its latest figures concerning retail store vacancy rates and these figures showed a slight fall in overall vacancy rates across the UK. However this fall has been somewhat concentrated in certain regions.

According to the LDC shop vacancy rates slipped to below 14% for the first time since July 2010, the height of the Great Recession. The rate in for December of last year stood at 13.9%, up from a high of 14.6% measured in February 2012.

Economic experts are citing an improving economy, along with collective government efforts to aid shopping activity in town centres for these positive numbers. These conditions have actually seen the national average for shop vacancy fall to 12.2%.

Despite the average some areas are still suffering heavily from shop closures. The North West recorded the worst figures, standing at 17.3%. Areas in the North West including Morecambe, Bolton and Bootle were measured as the worst in the nation.

In contrast London recorded the lowest rate of shop vacancies with the capital’s figure standing at 8.1%. Other areas in the South also saw falling shop vacancy rates.

The Guardian reported that Matthew Hopkinson, director of LDC labelled 2013 a “pivotal year” for the nations shopping districts as vacancy rates finally held steady. He also noted that it is "clear from LDC's latest report is that there is a significant and growing divide between the north of the country and the south.”

Government backed schemes centred in small town have aided in the fall of overall UK vacancy rates. Schemes such as Future High Streets Forum and revival efforts under the Portas Pilot scheme have channelled funds and resources into town centres to aid the growth of small businesses and this is what has caused the vacancy rate, alongside economic growth, to fall.

A fall in shop vacancy rates suggests by its nature a rise in the number of successful small business we are seeing on Britain’s high streets. This is no surprise, as in order for a shop to stop being vacant, it needs business to fill it; the government backed schemes were designed to foster small business activity.

At RTA Business we believe that these numbers suggest that small business growth is leading to a stronger business acquisition market. After all more small businesses and economic growth lead to larger businesses looking to expand. It’ll be interesting to see how vacancy rates continue as the year unfolds.