Empty High Streets see thousands of jobs axed
THOUSANDS of retail workers have lost their jobs this year as around seven shops a week close on Scottish High Streets.
The Scottish Retail Consortium (SRC) said the vacancy rate in Scotland is now 10.6 per cent – up from 9.1 per cent last July, which means that more than 4,000 people have been put out of work.
Now the SRC is demanding Scottish Government action.
Around 300 traditional stores are cl osing each year with the onslaught of higher business rates, the rise of online shopping and town centre parking restrictions.
Town centre s pending has slumped from around £10.6billion to approximately £9.4billion in the past five years.
The SRC’s latest sales monitor has also found that the number of shoppers has fallen by 2.4 per cent since last July.
Every 1 per cent rise in the shop vacancy rate equates to a loss of around 2,550 Scottish retail jobs.
David Lonsdale, director of the SRC, 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. Encouraging shoppers back is crucial to reducing the number of vacant premises.
‘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. Local councils should place more emphasis on accessible and affordable parking.
‘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.’
The body has called on Finance Secretary John Swinney to announce an immediate review of business rates. Current rateable valuations were fixed in 2008 – before the financial crash.
Businesses in Scotland were hit with another 2 per cent rise in business rates in April. The Scottish Government has forecast that this will be worth an extra £150million in tax revenues, bringing the total business rates take in Scotland to £2.8billion.
The tax rise will hit retailers particularly hard as they contribute around one-quarter of that sum.
Since 2009, revenues derived from retail have increased by more than 30 per cent whilst there have been around 1,800 fewer shops.
Diane Wehrle, marketing and insights director at retail analysts Springboard, said: ‘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.
‘The growth in activity in retail parks is likely to lead to a further deterioration in the vacancy rate unless key initiatives are implemented to boost town centre trade.’
‘Cheerless set of figures’