SRC calls for government action to stem Scotland’s retail decline

Scottish retailers have called for action from “government at all levels” to arrest the decline in footfall on the nation’s high streets and the rising number of vacant shops.

The appeal was made as latest figures from the Scottish Retail Consortium (SRC) revealed that 10.6 per cent of Scotland’s shops stood empty last month - almost one in every nine retail premises - and up from the 10.4 per cent recorded in June.

The “cheerless” figures were further compounded by a 2.4 per cent year-on-year fall in footfall numbers which were unchanged from June.

This compared with UK-wide footfall for July of 1.1 per cent lower than a year ago, up from the 1.5 per cent fall in June.

SRC said encouraging shoppers back was “crucial” to reducing the number of vacant premises.

The SRC/Springboard report for July found the decline in footfall was in high streets and shopping centres, and was much more severe than across the UK as a whole.

However, retail parks saw an 8.8 per cent increase in shopper numbers.

SRC director David Lonsdale, said: “This is a rather cheerless set of figures, heralding a third successive spike in the shop vacancy rate in our town centres coupled with a further drop in shopper footfall.

“A more concerted effort is required to drive up footfall and reduce the number of empty retail premises in our town centres.

“Retailers have a role to play but we also need to see government at all levels consider what further steps could be taken.

“For example, local councils should place more emphasis on accessible and affordable parking and a building standards system that better facilitates retail refurbishment and expansion.

“At a time when retailers’ margins are thin or non-existent, government needs to get a firmer grip on tax and regulatory costs which have mushroomed, starting by making it less costly for firms to invest in commercial premises.”

Diane Wehrle, Marketing and Insights Director at Springboard, said: “Whilst across the UK the long term drop in footfall in our retail destinations appears to be settling at around -1 per cent in every month, the trend has differed in Scotland with an average monthly increase of +0.1 per cent over the past 12 months. Since January, however, there has been a noticeable shift downward, and the drop of -2.4 per cent is the third consecutive fall this year.

“All of the decline in footfall in Scotland is in high streets and shopping centres, but the drops have been much more severe than across the UK: -4.8 per cent in high streets and -6.8 per cent in shopping centres whilst in retail parks the +8.8 per cent uplift is significantly higher than across the UK.

“The more severe drop in footfall in Scotland’s high streets and shopping centres compared with the UK is likely to be one of the reasons for the worsening of the vacancy rate to 10.6 per cent from 10.4 per cent. Many retailers are rationalising their networks as high street leases come to an end, and as retail parks are able to easily capitalise on the demands of shoppers in the omni-channel trading environment they inevitably act as a magnet for retailers who are able to trade successfully out of town. The growth in activity in retail parks in Scotland – which started five months earlier than across the UK in August 2013 and which is escalating – is likely to lead to a further deterioration in the vacancy rate over the coming months unless some key initiatives are implemented to boost town centre trade.”

A Scottish government spokesman said: “Our town centres should be attractive focal points for the community, and we have invested heavily in transforming them in recent years, including through a £60m town centre regeneration fund to help breathe new life into those which needed revitalising.

“Together with local councils, we have also taken forward a Town Centre Action Plan, and have provided funding to help bring empty town centre properties brought back into use.

“In addition, this government has ensured the most competitive business tax environment anywhere in the UK, with 96,000 properties across all sectors of the Scottish economy paying zero or reduced business rates, ensuring that more businesses can afford to keep a presence on the high street.”