U.K. Shop vacancies may climb to 14% next year before falling

U.K. shop vacancies may rise as high as 14 percent next year from the current 12 percent because of increased online retailing, competition from supermarkets and the faltering economy, an industry lobby said.

The average store vacancy rate should fall to 11 percent by 2014 as consumer spending revives, according to a study by Oxford Economics for the British Council of Shopping Centres released today. That still exceeds the rate of about 7 percent that prevailed from 2000 to 2007, the BCSC study showed.

The report highlights how the U.K. has too many stores in undesirable locations. The Internet has changed consumer spending patterns and persuaded retailers such as children’s clothing chain Mothercare Plc to reduce its network of stores. The increased number of boarded-up shops in some non-prime locations led Prime Minister David Cameron in May to order a review to revitalize the worst affected town centers.

“To attract customers and ultimately drive sales, town centers must be managed and marketed well to secure investments from a range of national brands and independent businesses,” BCSC Chief Executive Officer Michael Green said in a statement.