Boost for independent stores
By Richard Wright | 16th September 2021
Independent stores are moving into the gap left as the big chains move out of shopping centres and high streets.
The first six months of 2021 saw the independent store market return to growth - with 804 new stores - for the first time since the first half of 2017.
This is in stark contrast to the significant loss in units seen among chain retailers, which saw a net loss of 5,251.
The independent sector was boosted by consumers opting to stay and shop locally.
The latest Local Data Company analysis shows that government support such as furlough, the halt on tenant evictions and business rates relief, which has been extended until March 2022 (66% relief from 1st July 2021), is helping to shore up the sector.
But there's a warning that when support ends next year, the market could see increased closures.
Growth in the independent market was driven mainly by food retailers - convenience stores, grocers, takeaway and leisure operators such as cafes and fast-food units.
Independent businesses have had the benefit of access to an increased volume of vacant units, often with attractive deals from landlords including rent-free periods and capital expenditure contributions to encourage take-up of empty units.
Lucy Stainton, commercial director at the Local Data Company, said: "For the first time since the onset of the pandemic, there may be some cause for optimism when it comes to the performance of our high streets."
The new LDC figures show a slowdown in the speed of decline, with store losses far more significant in the first half of 2020 when compared to 2021.
She added that consumers were also increasingly concerned with the provenance of products, sustainability and supporting local businesses.
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