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20 September 2011

One in 10 shops doomed to stay closed

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Closed shop

More that one in 10 stores could fall into long-term disuse, according to a new report.

“Boarded up shops are the most prominent symptom of the plight of some town centres, the state of which has been magnified by a number of high-profile reports in recent weeks, and of course by Mary Portas's appointment by Government,” said Richard Akers, president of the British Council of Shopping Centres (BCSC).

The BCSC’s report, Empty Shops, What does the future hold for town centres?, predicted that vacant outlets would peak at 13-14 per cent in the near future before falling to around 11 per cent in the long term.

It blamed a string of factors besides the current economic climate for the increase in empty shops.

These included the rise of internet retailing, which now accounts for 10 per cent of retail sales, the expansion of the supermarkets, demographic change and the growth of shopping centre space since the 1980s.

It also blamed business rates, calling it a barrier to retail growth.

Mr Akers, who is also managing director retail at Land Securities, said: “UK business rates must be urgently reviewed if retail businesses are to survive and compete with rising online sales on an even footing.”