Not a Nation of Shopkeepers - 1 In 7 High Street Shops Now Closed, Says Business Debt Advice Company Winding-Up Petition

CHESHIRE, ENGLAND, April 05, 2012 (Press-News.org) Despite being known for its historic shop keeping tradition, the Local Data Company reported the UK saw a 14.6% rise in town centre vacancies in February, considered to be the highest rise since the retail risk index was created in 2008.

The areas of the lowest and highest risk in the UK have now been published by BNP Paribas Real Estate as a guide to the best areas for retail investment. The riskiest places to invest include Bradford, Derby, Wolverhampton, Southampton, Hull, Sheffield, Swindon, Warrington, Stockport and Nottingham, while the best places for a business owner to invest their money are Lewisham, Wood Green, Uxbridge, Harrow, Truro, Sutton, Colchester, Inverness, Peterborough and Southport.

Head of retail at BNP Paribas Real Estate, Ian Parish, said: "Other than an obvious north-south divide in line with affluence, the actual towns themselves are not necessarily the ones we thought we'd be identifying at the beginning of the process and the report goes to show that even the most dominant towns and cities are not immune to risk.

On the whole, the retail risk index showed that across the UK 10% of units that were currently occupied by businesses were at 'very high risk' of closure and 17% at 'high risk', while 20% of units are either vacant or let to charity shops. Only around half of the units considered were classed as secure.

A spokesperson for Business Debt Advice Company Winding Up Petition, says; "The retail index list of good and bad investment areas makes grim reading, and yet these are the places that need the most investment in their communities. Interestingly, while the perception that the most risky might be found to the North was on the whole right, to find areas on the South Coast like Southampton is a surprise. Likewise, the list of the less risky is investment areas has places like Inverness and Peterborough on it, which you wouldn't ordinarily associate with being particularly retail-centred."

The uncertain market has seen retailers such as the Game Group file for administration, threatening 6,000 jobs and 600 stores, while retailers such as John Lewis have seen profits soar. An early Mother's Day and the launch of Apple's new iPad encouraged shoppers to flock to the department store in droves and saw it do record trade volumes for March.

Despite the market conditions it is clear that some retailers are able to buck prevailing market trends. "Companies like John Lewis were already known for their customer service and the quality of what it sold, but by offering to price match and free lengthy guarantees on goods such as electrical products, they are offering everything the cash-strapped consumer is looking for when they do go shopping," said the spokesperson. "It's an important model of business that all firms should learn from if they want to avoid winding-up petitions, pre pack administration or receivership in the current economic climate."

Nationwide has speculated that a combination of falling consumer confidence caused by the general market depression, rising unemployment and high inflation has left consumers unwilling to spend a lot on household goods, which is forcing some of the smaller retailers into the red.

Nationwide's chief economist, Robert Gardner, said: "Given the uncertain economic outlook, it is no surprise that consumers remain cautious about making major purchases, with nearly half of all respondents thinking it is a bad time to make a major purchase."

Even though interest rates remain at historic lows and the Bank of England opted to inject another GBP50bn into the financial system in early February, weak labour market conditions combined with weaker-than-expected economic growth are continuing to weigh on confidence.

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