ONE in six shops in Scotland are vacant, with rates unlikely to “ever fully recover” experts have said.
The vacancy rate is one of the highest in Britain, according to the latest Vacancy Monitor issued by the Scottish Retail Consortium (SRC) and the Local Data Company.
SRC director David Lonsdale said there is “little sign” of improvement north of the Border , as the rate remains at 15.7% for the third consecutive quarter – an improvement of 0.4% since 2021.
He said: “Scotland’s vacancy rate has plateaued over the past three quarters and seems stubbornly stuck at a fifth higher than during pre-pandemic times. Whilst there has been a small improvement over the past year, the fact is Scotland’s store vacancy rate is above that for Great Britain as a whole, with one in six stores lying empty.
“The volume of empty units is especially marked in shopping centres.
“The fallout from the cost of living crunch and pandemic is exerting a heavy toll on retail destinations, as does what increasingly looks like a sustained shift towards hybrid working. This could make it trickier for store vacancy rates to ever fully recover.”
Scotland ranked eighth out of 11 areas UK-wide for the highest shop vacancy rates, with the North East ranking worst at 18.2%. Though Scottish shopping centre vacancies in the final quarter of 2022 remained unchanged from the same point in 2021 at 20.5%, retail park vacancies improved to 9.8% in 2022, from 11.0% previously.
Lucy Stainton, director of the Local Data Company, said: “Retail parks continue to outperform other location types, which is perhaps an indication that some of those shopping habits formed during the height of Covid are sticking – with consumers favouring these drive-to locations and larger format units.
“The Christmas trading period seemed to indicate that consumers were favouring, and returning, to stores, alongside their online spend.”
Scottish Tory finance spokesperson Liz Smith said: “Thanks to the Barnett consequentials, the UK Government had provided an additional £222 million that could have helped hard-pressed firms, but it was not passed on. The lack of rate relief support puts Scottish businesses at a disadvantage, but it’s also a huge blow to the firms that are the backbone of our high streets and communities across the country.”
Public Finance Minister Tom Arthur said the retail sector has experienced “challenging trading conditions” due to Covid, and data shows the impact of the pandemic will continue to be felt.
He added: “The cost of living crisis, driven by rising inflation and energy prices, is a real concern. The powers and resources needed to tackle this emergency on the scale required – access to borrowing, welfare, VAT on fuel, taxation of windfall profits, and regulation of the energy market – lie with the UK Government.”
