One in five shops in the North East is vacant, according to a new study that is the latest to raise alarm bells over the strength of the region’s economy.
The report by the British Retail Consortium (BRC) and the Local Data Company found that 19.9% of shops in the region were vacant at the end of last year, the highest rate in the 海角视频.
The North East also saw the largest rise in the number of vacant shops, with that rise coming counter to a fall in most other areas. The study is the latest where worrying data has come at the same time that other parts of the country are seeing improvements as they start to recover from the pandemic.
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Last week the North East regained its unwanted position as the area of the 海角视频 with the highest unemployment, while an influential business survey has reported two months of falling activity in the North East while most other areas saw an improving performance.
BRC chief executive Helen Dickinson said: “The lowest vacancy rates were seen in the South – where higher disposable income and greater business investment meant vacant storefronts were more quickly repurposed. Meanwhile, Scotland and the North continue to see much higher vacancy rates, with the North East at almost one in five shops closed.
“It remains to be seen how Omicron will have impacted the number of store closures, but given the third lockdown in England had little impact on the vacancy rate, we are hopeful that the trajectory will remain positive. However, with hybrid working unlikely to disappear any time soon, it will be difficult for vacancy rates to fully recover in our town and city centres.
“Shuttered shops diminish the vibrancy of local high streets, costing jobs and damaging local communities. Business rates reform remains the most effective way of helping drive much needed investment to left-behind communities all over the 海角视频.
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“If the Government is serious about its levelling up agenda, it must ensure that a cut to the rates burden features at the centre of its forthcoming White Paper.”
Lucy Stainton, a director at the Local Data Company, added: “We are still seeing rationalisation across many of the chain retailers and leisure operators reflected in these latest statistics, but the growth in the number of independent businesses is helping stem further increases in vacant units.
“This is particularly key to note as having more independent operators alongside larger brands creates more diverse and entertaining spaces for consumers, which will further bolster attractiveness and therefore recovery.”
Earlier this week a separate report highlighted Newcastle’s city centre as an area that had suffered during the pandemic, with big name stores such as Debenhams, Topshop and Monsoon all closing.
That research from Centre for Cities found that Newcastle city centre has seen the second biggest increase in empty stores in the country during the pandemic.
The North East England Chamber of Commerce has called for Government support measures to help city centre businesses, but also appealed to local people to use town and city centres more.