The emperor Napoleon described the English as a nation of shopkeepers. The question is are we still one or has the growth of e-commerce changed us? The high street has been grappling with an increasing number of shop vacancies for some time now, a trend exacerbated by shifting consumer habits and economic challenges.
The Covid lockdowns led to a huge increase in internet shopping. Figures show that in the February preceding the first lockdown, 19.1% of transactions were online. As a direct result of non-essential stores closing their doors, that increased to 37.8% by January 2021. The latest figures for February 2024* however show that online shopping fell back to 26.6% of all transactions. A decline of almost a third, a promising sign of things to come perhaps?
Reports claim the vacancy rate for high street shops has now reached a concerning level, reflecting the struggles faced by traditional bricks-and-mortar retailers amidst competition from online platforms and changing retail landscapes. Efforts to revitalise these areas and adapt to evolving consumer preferences are underway, but the issue of high street vacancies remains a prominent concern for communities and policymakers alike.
The sharp increase in internet shopping led to high street shops closing in large numbers, as can be seen throughout the country. The mainstream press were quick to report that the North East had the highest rate of empty shops in the UK at the end of last year, but little mention of the region seeing the biggest increase in store openings, according to British Retail Consortium figures. The slowdown in the economy has undoubtedly also influenced how we shop but, the tide seems to have turned. youngsRPS’ commercial team, and many other agents across the region, are now experiencing a steady demand for small shops, a trend not dissimilar to that after the financial crash of 2008.
So where is the happy medium? Most of the shopping centres where we are involved, such as Whitley Lodge which is home to a mix of retail, food and leisure units in Whitley Bay, Coastway Shopping Centre in Wallsend and Kenton Retail buck this trend with very high occupancy levels and continuous demand ensuring any vacant units are quickly re-let.
Government backed schemes such as the Future High Street Fund of £1 billion, are being put to use redeveloping declining town centres and increasing mixed use spaces. Hexham, Ashington, Blyth and Cramlington are all in the depths of development now.
Several of the major chains are also expanding and diversifying their high street presence. Dominos have proposed to open 70 new stores in 2024, and a total of 2000 stores by 2033 across the UK and Ireland. North East based Greggs plan for up to 160 new stores across the country, with more convenient access to its stores and a varying portfolio of store locations, including their ‘Tasty by Greggs’ concept in collaboration with Primark. Newcastle’s Northumberland Street store currently boasts a 114 seat café, not forgetting the world’s largest Greggs, which opened in Birmingham’s Primark store in March 2023. Asda, with its firm growth strategy in convenience, began converting the 470 convenience stores and forecourts bought from the Co-op and EG Group under the Asda Express banner in January with completion expected by the end of Spring 2024.
Peacocks, Trespass and Bon Marche are also expanding their high street presence whilst Next and M&S are re-locating to larger stores. Wilko, now owned by The Range, has opened three new concept stores with 50 more to follow.
The challenge of vacancy is nothing new and the Covid pandemic may well have challenged the high street further but there are encouraging signs that we are gradually returning to Napoleon’s view that we are a nation of shopkeepers.
*Figures taken form Office for National Statistics.
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