The number of empty stores on Britain’s major streets has fallen in the last three months of 2022, despite pressure on both companies and consumers due to rising costs.
Figures in a report from the British Retail Consortium (BRC) and the Local Data Company (LDC) show the overall vacancy rate improving to 13.8%.
It marked an improvement of 0.1 percentage point between July and September, the report showed.
The total is also 0.6 percentage points higher than in the same period last year and marks the fifth consecutive quarter of declines in vacancy rates in the wake of the COVID pandemic.
Despite government support, a series of independent chains and stores have closed amid public health restrictions.
The shift to online shopping and staying at home during the pandemic was quickly followed by a cost increase After reopening, shops and hotels are struggling to recruit staff at the same time.
The costs associated with reopening have been exacerbated by energy-led inflation, the industry said, claiming daily victims as many people struggle. to pay their way at a time when consumers are discouraged from spending.
Please use Chrome browser for more accessible video player
Cost of living: Christmas sales drop
The report found that Greater London, South East and East England had the lowest vacancy rates.
While the highest rates were in the North East, followed by Wales and the West Midlands.
However, the Northeast region has the highest store opening rate.
Read more from Sky News:
Royal Mail strike ‘worth £200m’
Thousands of jobs at risk in Asda shakeup
UK car production at 66-year low
Research shows this is supported by a return on investment, aided by people returning to the office and reusing many of the abandoned locations.
That said, the inflation rate remains at levels not seen in 40 years and the Bank of England is widely expected to continue raising its key interest rate in the coming months to help reduce the rising cost of living despite the risk. economic depression.
Please use Chrome browser for more accessible video player
UK ‘could shrink in first quarter’
Official figures indicate a sales decrease during the key month of December while closely watched surveys of consumer sentiment remain weak.
Helen Dickinson, chief executive of BRC, said of the outlook: “The first half of 2023 is likely to be another challenging time for retailers and their customers.
“There is little sign that retailers’ input costs will ease, putting more pressure on margins and causing businesses to think twice about how much to invest.
“However, the situation should improve in the second half, as inflationary pressures begin to ease and consumer confidence is expected to return.”
