The difficulties facing the high street are familiar to everyone. However, while this is largely an issue for all towns and cities, some are struggling more than others with areas in the north feeling the effects more acutely than those in the south.
Sheffield is one northern city which has struggled to attract retailers to the city centre despite the fact that a large shopping precinct is in the pipeline. As it stands, 26.1 per cent of retail properties within the city centre are currently vacant – an increase of 3 per cent in the past year alone.
This officially places Sheffield sixth in Britain for the highest vacancy rates, according to research by the British Retail Consortium (BRC).
While Sheffield City Council insists that the high vacancy rate is due to the upcoming Sevenstone project, this only accounts for vacant stores within the area between The Moor, Pinstone Street and Barker’s Pool.
Outside of this section earmarked for development, 13.8 per cent of stores lie empty, and this figure will increase markedly if the council fails to find tenants to fill all the units within the Sevenstone scheme.
Wilson Field insolvency practitioner Gemma Roberts claims that a number of factors have led to the high vacancy rate in Sheffield. While some factors cannot be controlled by retailers, she believes that responding to the needs of consumers could help turn the situation around.
She says; “The retailers which are struggling have been slow to respond to changes in consumer demand, especially to internet shopping.
“Also, public confidence to spend continues to be low – everyone is cutting back.
“Another damaging effect to the high street can be bad weather and the recent snow will hit retailers hard.”
Unfortunately all signs indicate that the situation on Sheffield’s streets is likely to worsen before it improves. Retail experts predict that more shops will close in the city in the coming months, largely thanks to the demise of larger high street chains such as HMV driving more and more consumers online.
Figures released this week by the Royal Institute of Chartered Surveyors (RICS) have done little to alleviate fears of a further drop in tenancy levels, with the number of businesses looking to rent a retail property in the city falling by 7 per cent in the final quarter of 2012. This has been reinforced by business leaders in Sheffield, who agree that demand has appeared “weak” as of late.
Chief economist at RICS, Simon Rubinsohn, says; “The end of 2012 was yet another incredibly tough period for the high street, brought to a head by news of HMV, Blockbuster and Jessops.
“Sadly, this downbeat picture doesn’t look like it will change any time soon.”
However, outside of the retail sector, there are early signs that Sheffield may slowly be returning to normality in terms of the wider commercial property market.
Mr Rubinsohn continued; “Significantly though, the last quarter did see demand for office and industrial space increase in Yorkshire.
“Although only time will tell, but it is encouraging that appetite is gradually growing.”
Like many cities in the UK, then, Sheffield is struggling to boost its retail industry and reduce vacancy rates on the high street. However, with the Sevenstone project due to commence as early as next year there is the potential to improve this situation.
Meanwhile the increase in office and industrial demand points to a welcome upturn in the Sheffield market.
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