The number of empty premises across Welsh retail destinations stagnated in the third quarter of 2022 as the sector enters its 'golden quarter' in the run up to Christmas.
The Welsh Retail Consortium reported that there was little movement to the number of empty shops across Wales in the latest quarter.
Figures show that the Welsh vacancy rate marginally decreased to 16.6% from 16.7% in Q2 and was 1.1 percentage points lower than the same point in 2021.
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Shopping centre vacancies decreased to 23% (from 24.7% in Q2), while on the high street the number of empty shops rose slightly to 16.3% in Q3, from 16.2% in Q2.
Retail Park vacancies decreased to 11.0% in Q3, from 11.5% in Q2. It remains the location with by far the lowest rate.
Head of the WRC Sara Jones said: "There was little movement in the last quarter when it came to the number of empty premises across our Welsh retail destinations. The minor improvements in the vacancy rate for shopping centres and out of town, combined with a small increase in the number of empty high street shops, has left retailers with little to celebrate as we enter the all-important golden quarter for Welsh retailers.
“With business rates bills potentially rising to record levels next April many businesses will be questioning their ability to manage the cost pressures they face in the current climate. Coupled with concerns over household spending, it could be a nervous few months for retailers as they continue to do all they can to entice shoppers back to store to ensure they have a viable business come next Spring. The forthcoming Welsh retail conference that’s due to be held in Cardiff next month, could provide a real opportunity to look at the Welsh Government’s retail vision and identify measures to give both a short- and long-term boost to the industry. Local Authorities have a role to play too, in the run up to Christmas consumer focused campaigns and initiatives to get shoppers back onto our high streets could have a real impact at a time of great uncertainty.”
Local Data Company director Lucy Stainton said: “Our latest analysis of the physical retail and leisure market across GB as a whole shows a sustained level of recovery at a time when further economic headwinds have been well-documented. With a decrease in store closures compared to the same time last year, in parallel with an increase in openings, vacancy rates have continued to decline as we look to the end of 2022.
“The pandemic proved the final straw for a number of ailing retailers. The CVA and insolvency activity which typified the most challenged end of the market in the COVID years caused a significant spike in empty units, which are now slowly being reoccupied.
“Independent businesses in particular have continued to flourish as consumers remain loyal to their local high streets. However, we can’t ignore oncoming economic pressures as consumers face a winter of increased caution and reduced disposable income. Just as the market has started to find its feet, we are now about to face a new round of tests— but perhaps the lessons learned during the pandemic will help chains and independents to weather the coming storm. The latest GB figures are encouraging but should still be viewed with real caution, and we would predict that this increase in occupancy could slow as retail and hospitality businesses grapple with a tough winter.”
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