It’s all doom and gloom for the British high street.
It has been reported that UK retail shops are set to suffer even more in 2012 – as a direct result of the dire economy and the rise of online shopping.
With the vast majority of people becoming more internet savvy, believing they can find the best deals online, combined with a huge reduction in disposable income, the British high street is on a downward spiral.
Empty streets – empty shops
The Local Data Company (LDC) has reported that the number of empty shops will increase in 2012 due to the combination of a rise in online sales, increasing unemployment and lack of consumer confidence.
Shockingly, almost a third of shops are lying empty in some town centres, the report shows.
An estimated 48,000 retail sites are vacant around the country – a figure which is expected to grow because of the increase in online shopping and out-of-town shopping centres.
Nationally one in seven stores is empty.
Stockport has the highest percentage of empty shops at 30 per cent, while 25 per cent of shops in Hanley remain closed.
St Albans has the lowest level of vacancies, with just 8.2 per cent of shops empty.
And it seems no one is safe. Major high street names including Jane Norman, Barratts, Habitat and Focus DIY all went into administration during 2011.
Online prices are cheaper than shops
The report revealed that although the volume of shopping done at out-of-town retail outlets increased from 28.1 per cent in 2000 to 31.5 per cent in 2011, the main reason for the decline of town centre shops was the growing popularity of online shopping where expenses are less and prices often cheaper.
Research conducted by retail consultancy Verdict on behalf of LDC shows that online sales doubled from 5.1 per cent in 2000 to 10.2 per cent in 2011, with the trend set to continue.
Matthew Hopkinson of the LDC said “Technology is driving consumer behaviour to a world of engagement, entertainment and the ability to shop where, how and when we like. Town centres need to adapt to this changing environment if they are to survive and thrive.”
So, what’s the solution for the British high street?
Liz Peace, chief executive of the British Property Federation believes that turning empty shops into new homes would be the most practical idea.
She said: “Bringing empty shops back into use by allowing conversion to residential is one that could be implemented quickly and easily.”
What do you think? Do you think the empty shops should be turned into new homes?