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Birmingham Post
Birmingham Post
Business
Owen Hughes

Record spike in empty shop units in Wales as pandemic hits retail

    Wales has seen a spike in empty shop units as the Covid pandemic impacts retail.

    In the third quarter of 2020, the Welsh vacancy rate increased to 18.0%, from 15.9% in Q2.

    Shopping centres were the worst hit with vacancies increasing to 20.8% from Q2’s 17.0%.

    On the High Street, vacancies increased to 18.6% in Q3. This was up from 16.8% in Q2.

    Retail Park vacancies increased to 8.6% in Q3 2020, up from 6.9% in Q2.

    Sara Jones, head of the Welsh Retail Consortium, said: “Wales recorded the biggest spike in the shop vacancy rate of any part of the UK in the latest quarter.

    "Almost one in five Welsh shops is now vacant. It is evident that we are now seeing the brutal knock on effect of the lockdown earlier this year and becalmed trading conditions.

    "With recent travel restrictions affecting the majority of the nation and the current fire breaker in full flow, the chances of an improvement in the vacancy rate for the final quarter of the year look slim.

    “Retail is the lifeblood of many local economies and to see our high streets devoid of shops is a sorry scene.

    "Welsh retailers have gone to extraordinary lengths and invested millions of pounds in measures to keep our customers and colleagues safe during the coronavirus pandemic, and we were saddened by the decision to include non-essential retail in the current fire breaker, more so as the government’s own scientists say it will have ‘very minimal impact’ on reducing the R number. 

    Lucy Stainton, head of retail and strategic partnerships, Local Data Company, said: “The sharp increase in the vacancy rate in Q3 is illustrative of the immediate impact the coronavirus pandemic is having on retail and hospitality.

    "This is a record increase in any one quarter since we began tracking vacancy and whilst it’s not right to assume that this spells the end of physical retailing, it does reflect the immense pressure on operators trading through a pandemic."

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