Dwindling footfall hits Welsh high streets hard
Wales’ town centres have one of the highest vacancy rates in the UK, according to the latest footfall figures.
The town centre vacancy rate for Wales was 12.5% in April 2018, unchanged from January 2018. This is above the average vacancy rate for the UK, which increased to 9.2% in April 2018 (from 8.9% in January 2018).
Growth fell in all shopping destinations – the high street saw a decline of 1.1%, retail parks of 0.8% and shopping centres of 3.1%.
“The vacancy rate in Wales’ town centres remains one of the highest in the UK, with one in eight stores sitting empty, sitting at its second-highest rate in over two years, whilst shopper footfall continues to dwindle across all retail destinations,” said Sara Jones, head of policy and external affairs at the Welsh Retail Consortium.
“This pointed deterioration in shopper footfall and the stubbornly high shop vacancy rate underlines just how challenging retail market conditions currently are.
“We urgently need to see business rate reform back at the top of the devolved governments’ agenda, as this could make a real difference to ailing businesses across the nation at a time when they are facing such unprecedented change.
“A reformed and lower rates system would be good for business, good for the economy and, most importantly, give our local high streets the boost they so desperately need.”
A number of big-name high-street chains have been in the headlines for struggling in the recent ecomonic climate, such as House of Fraser and New Look, or for ceasing to trade completely, such as Toys R Us and Maplins.
Ben Francis, FSB Wales policy chair, has called for new thinking on what is needed for the high street.
“In Wales, we have always been incredibly proud of our diverse and vibrant high streets, but we must take action to ensure that this presence can be maintained in the future,” said Mr Francis.
“At FSB, we are undertaking work in towns across Wales to discuss what our towns and high streets should look like in the future, given changing shopping habits and our different approach to the high streets. We must have a conversation in Wales about the future of our high streets and how they can continue to thrive and have a strong future.”
Diane Wehrle, Springboard marketing and insights director, said that much could be made of the adverse impact on April’s footfall of Easter shifting to March – but even when this is taken into account, there is a clear decline in footfall.
“Given the decline in footfall over the month, negative LFL retail sales was not unexpected,” said Ms Wehrle.
“Indeed, we had an early warning sign of what was likely to come by the end of the second week, as footfall in Wales dropped by -6% over the first half of the month.
“In the last two weeks footfall did recover, averaging +1%, undoubtedly assisted by improved weather, but it was not enough to deliver an uplift.”