Fewer shoppers and empty shops

Retail leaders warned of tough times as new figures revealed a slight fall in the number of empty shops in Scottish town centres last month but a steeper fall in the number of shoppers.

The vacancy rate was down at 9% in January from 9.2% in October 2016, equating to one in 11 town centre stores lying empty.

It was lower than the average vacancy rate for the UK, which dropped to 9.4% from 9.5%.

Footfall fell by 1.1% year-on-year in Scotland in January, the steepest fall since July 2016, and deeper than the three-month average of -0.3%, but above the 12-month average of -1.3%.

Shopper numbers fell on the High Street and in shopping centres, but rose in retail parks.

Ewan MacDonald-Russell, the Scottish Retail Consortium’s head of policy, said it was a mixed picture.

There was concern about footfall after what was otherwise a good Christmas trading performance, but shopping centres suffered a tough January.

“Trading conditions continue to be tough for physical retailers,” he stated.

“With shopper footfall easing down at a time when cost pressures from public policy are building, it’s vital in the short term at least that government doesn’t add further additional burdens to retailers already struggling with rates bills and apprenticeship levies, or to consumers facing rising council tax bills.

“The current situation is not sustainable, and it’s clear that fundamental reform of the punitive business rates system is urgently needed to take the pressure off hard pressed retailers.”

Diane Wehrle, marketing and insights director of analysts Springboard, said: “The 1.3% drop in footfall across the UK’s bricks and mortar destinations in January may be a sign of tougher things to come for 2017.”

The footfall decline was the steepest decline since June 2016 in the weeks before and immediately after the EU referendum.

Empty shops is an issue in Dundee, on streets like Murraygate.