How tough is it for retailers?

No matter how iconic the retail location the challenges facing traditional retailers continue to create a very visible vacancy headache for retail landlords.

The Office for National Statistics (ONS) recently reported that the retail sector is experiencing its longest spell of no growth since records began in 1957. This corroborated an earlier report from the British Retail Consortium estimating that retail sales fell in 2019, marking the worst year since comparable data was first recorded in 1995.

“2019 was the worst year on record and the first year to show an overall decline in retail sales.” Helen Dickinson, CEO, British Retail Consortium

It is well documented that this tough retail environment is proving an ongoing challenge for many bricks & mortar retailers. Not only are retail sales weak but retailing continues to move online. The ONS estimates that 19% of all retail sales are now online, a meaningful increase from three years ago when the comparable number was 15%.

“Consumers clearly favoured logging on to walking in…” Paul Martin, UK Head of Retail KPMG commenting on the BRC report

Ongoing tough times for retailers probably means continuing tough times for retail landlords too.

This month Chester Barrie closed its doors for the final time in 85 years, sadly creating another empty retail unit on the iconic Savile Row. Around the corner on the world-famous Bond Street luxury jeweller De Grisogono’s flagship has closed too. 

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