Retail Sector Faces Tough Times with Highest Vacancy Rate in Four Years

  • National town centre vacancy rate reaches highest level since April 2015 at 10.2%
  • High street footfall declines by 1%, while retail park footfall increases by 2.2%
  • Shopping centre footfall decreases by 2.1%
  • Easter holiday effect on footfall was not enough to boost numbers this year
  • Weather influences footfall in coastal towns and regional cities
  • Government policies contribute to increased costs for retailers

The UK town centre vacancy rate has reached its highest level since April 2015, standing at 10.2%, according to data from the BRC-Springboard Footfall and Vacancies Monitor. This marks an increase from the previous quarter’s 9.9%. High street footfall declined by 1% compared to a 4% drop in the same period last year, while retail park footfall increased by 2.2%. Shopping centre footfall fell by 2.1%, down from a 3.1% decrease in the same period last year. Helen Dickinson OBE, chief executive of British Retail Consortium, explained that the rise in empty shopfronts may deter potential customers and contribute to lower footfall. Diane Wehrle, Springboard marketing and insights director, added that the early Easter this year did not provide a significant boost to footfall numbers. She also noted that retail parks experienced their highest increase in footfall since June 2017 at +2.2%. However, high street and shopping centre footfall remain lower than in 2017 by 5% and 5.6%, respectively. Weather conditions positively impacted coastal towns and regional cities, leading to a higher exodus from Greater London and the south east.

Factuality Level: 8
Factuality Justification: The article provides accurate information about the increase in town centre vacancy rates and footfall trends in different types of retail locations. It includes quotes from experts to support its claims and acknowledges potential factors contributing to these trends. However, it could provide more context on the specific stores affected by closures and the impact on local economies.
Noise Level: 6
Noise Justification: The article provides relevant information about the increase in town centre vacancy rates and footfall trends in different types of retail locations. However, it includes some repetitive information and could benefit from more analysis or context on the causes and potential solutions to these issues.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the impact of high vacancy rates on retailers and footfall in different types of shopping areas, which can affect the performance and profitability of companies within these sectors.
Financial Rating Justification: The article talks about the increase in town centre vacancy rate and its effect on footfall, which can impact the financial performance of retail businesses. It also mentions government policies affecting business costs, such as business rates and the Apprenticeship Levy. This has implications for companies in the retail sector and could potentially affect their stock prices and overall market performance.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text. The article discusses an increase in vacancy rates and decline in footfall for high streets and shopping centers, but it does not reach the level of severity to be considered an extreme event.

Reported publicly: www.retailsector.co.uk