16% of UK shops lie empty according to Freedom of Information
According to figures released under the Freedom of Information Act, 15.9% of all shops and retail outlets in the UK now lie empty. The figures obtained by Duff & Phelps quantify the scale of the challenge facing the UK high street after one of the toughest trading periods since the 2008 recession.
Philip Duffy, managing director, restructuring advisory at Duff & Phelps, said: “Getting an accurate picture of the real health of the high street is difficult, but by using FOI, we managed to gain valuable insight into what local authorities are experiencing. With a total of 418 councils in the UK, our mean average indicates that the total number of retail units that now lie empty stands at 50,578, or an average of 121 empty retail units per council.
“The old financial model of the traditional brick and mortar retailer—based on a high street or shopping centre built around them in the post war era—was centred on regular increases in sales and 25-year leases with upward rent reviews only. As a result, it has meant high rents and occupancy costs. This has blown apart as a result of both the discounters and the dramatic uptick in online sales. The remaining question is whether this picture continues throughout 2019 and if so, at what speed?” concluded Duffy.
