Ghost town Scotland
Help us or our shopping streets will go under – store bosses plead for action over retail crisis
SCOTLAND’S shopping high streets face being wiped out unless radical action is taken by government, industry leaders have warned.
The number of empty shop units across the country has reached a critical level and is rising year on year, according to recent figures.
The ongoing cost of living crisis could be the final nail in the coffin for businesses already struggling since Brexit and the Covid pandemic – with smaller towns and cities expected to be worst hit.
Last night the Scottish Retail Consortium called on the Scottish Government to use its forthcoming Budget to reduce financial pressures on high street shops, which are in a ‘perilous’ position.
Research by the trade body found that Scotland’s shop vacancy rate worsened in the last quarter to 15.9 per cent – up on the same period last year. Shopping centre and high street vacancies both increased while out-of-town retail parks saw a small improvement.
The warning comes just days after high street homewares retailer Wilko, which has ten Scottish stores, went into administration.
Ewan MacDonald-Russell, deputy head of the Scottish Retail Consortium, said: ‘Covid, the costs crisis and weak economic growth has left Scotland’s high streets in perilous conditions, especially outside the largest cities. Both the UK and Scottish governments need to take action or the number of empty units will only increase.
‘They should use their upcoming Budgets to reduce the financial pressure on shops, in particular by keeping the business rates burden down, supporting consumer spending by avoiding unnecessary tax rises, and avoiding further levies or charges on businesses. If Ministers don’t take action, the tough times on the high street will only get worse.’
Mr MacDonald-Russell said stores in Scotland are ‘missing out’ on rates relief available to their counterparts in Wales and England.
He added: ‘Back in 2017 the SRC spoke about the future of retail. We said that a fifth of Scotland’s physical shops would close unless there were big changes.
‘The pandemic definitely accelerated the process but many of the issues faced by businesses should not be a surprise to the Scottish Government.
‘The way consumers shop is changing. With new technologies, people can pull out their phone and look online to see if they can get something cheaper. The high street needs independent shops and big retailers but it’s becoming more expensive to run physical shops.
‘With rising costs and reduced footfall, businesses are looking more carefully at where they need physical shops and the best locations. They want good parking and transport links. Any focus on discouraging private transport without making it easier to get into a town centre will cut footfall.’
Stirling University retail expert Professor Leigh Sparks said making town centres ‘multi-purpose’ by encouraging more people to live there and offering a range of other activities could breathe life back into Scotland’s high streets.
He added: ‘Town centre businesses are penalised by high operating costs compared to out-of-town decentralised businesses and the internet. We should be actively looking at disincentives for activities that have damaged local businesses, high streets and town centres. The unfairness for high streets that exists currently should be reversed.’
The Scottish Government said yesterday it had introduced ‘the most generous’ rates relief for small businesses in the UK.
A spokesman added: ‘It is estimated that around half of properties in the retail, hospitality and leisure sectors will pay no rates this year.
‘Any decision on non-domestic rates for 2024-25 will be made as part of the Budget later this year.’
Across the UK, big name brands have announced they will be cutting stores in the coming year. Boots wants to shut 300 UK stores and Argos is closing 100 shops.
Meanwhile, Marks & Spencer operations director Sacha Berendji has warned that the demise of London’s Oxford Street, once home to dozens of flagship stores but now filled with empty units, is fuelling city centre crime rates.
‘This should not be a surprise to Government’