High street meltdown could see one in ten shops vanish

FASHION, home and non- food retail- ers have lost £ 9billion in sales so far this year, which could lead to one in 10 stores never being used to sell goods again, a report has found.

The Centre For Retail Research also found nearly 14,000 shops have permanently closed.

The findings come as a poll of 400 property executives found more than a third are already changing how their retail stores are used and a further 57 per cent are considering changes.

Property specialists Altus Group’s Global Property Development Trends Report also found that at least £ 155million has been earmarked for repurposing assets.

Retailers had already agreed before lockdown that the high street had too many stores, with the shift to online remaining strong. Those with strong online stores and businesses have managed to maintain sales, although those without have suffered.

One of the most eye- catching moments showing the shift was the announcement from John Lewis that it would shut some of its department stores for the first time. The Centre For Retail Research says that, although some of the lost retail sales over the lockdown period were now being regained, 13,867 shops had pulled their shutters for the final time. It is thought at least 125,000 retail sector jobs have been lost so far this year.

Professor Joshua Bamfield, director at the Centre For Retail Research, says the longer the work- from- home instruction is required, the bleaker the prospects.

He said: “There is no alternative to repurposing... as much as 10 per cent of retail floor space might need to be repurposed in the short- to- medium term but could be much higher in major cities eventually.”

Business rates, which cover all commercial properties, have not needed to be paid this year by retailers, pubs, bars and leisure services.

But the announcement last week from Chancellor Rishi Sunak on extending the help for struggling businesses did not include an update on the business rate pause.

Scott Morey, executive director at Altus Group, said: “Long- standing pressures faced by property owners and developers have now been exacerbated by the pandemic and its evolving impacts.

“However, the property industry will seek to repurpose assets during this period of uncertainty.”

‘ As much as 10% of retail floor space might need to be repurposed’