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High street rebounds from administrations

By FashionUnited

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Just 20 percent of high street shops affected by 27 high profile administrations over the last five years are still vacant, according to new research from business advisory firm, Deloitte. Using Local Data Company data on nearly 5,900 shops, the study found that the high street is outperforming

retail parks and shopping centres, which have respective vacancy rates of 37 percent and 29 percent for space formerly occupied by these retailers.


Hugo Clark, director at Deloitte and author of the report, said: “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.”

The Deloitte research found that most of the vacant shops have been taken by discounters and convenience chains, with discount stores accounting for nearly one in five of all re-lettings, while convenience stores have expanded strongly to obtain nearly 12 percent of space acquired post-administration.

According to the business advisory firm, this pattern suggests a change in shopping habits inspired by the recession and mobile commerce, as 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.”

High street showing 'great resilience'

The research also revealed that some regions fared better than others, with Greater London at the lower end of the scale with an 18 percent vacancy rate, while Scotland is at the opposite end of the scale with a 37 percent vacancy rate. However, across the UK the high street was shown to have consistently outperformed retail parks and shopping centres.

However, even with this positive report, things are far from perfect on the high street, the Local Data Company believes that there are still a total of 43,600 shops standing vacant across the UK.

Deloitte
Local Data Company