More retailers placed on 'at risk' register
Published: 07 February, 2009
The proportion of retailers suffering poor financial health has “increased substantially” since the early 1990s, according to business consultancy FSP. Its recent analysis shows that the financial accounts of 40 per cent of multiple retailers, totalling over 13,000 stores, are in ‘very worrying’ shape.
The research shows that the size and location of retailers and shopping centres has a profound effect on their current financial health. Large towns tend to have lower than average concentrations of at-risk retailers whereas small towns, especially minor district centres, are more likely to have more suffering retailers. Despite this, London is one of the cities named home to a high proportion of at-risk retailers along with Scotland and Wales. Towns in the East Midlands, North East, West Midlands and Yorkshire have a lower number of at risk retailers.
The Bullring in Birmingham is one of the more resilient centres
The research also identified that regional shopping malls and shopping parks have lower than average representation of at-risk retailers. According to the study the specific centres most at risk are: Churchill Square, Brighton; The Glades, Bromley; Frenchgate, Doncaster; County Mall, Crawley and Golden Square, Warrington. Those looking the most ship shape include Cwmbran Shopping Centre, Brent Cross, the Bull Ring in Birmingham, Whitefriars in Canterbury, and Meadowhall in Sheffield.
Geoff Nicholson, managing director of FSP, says local authorities need to understand “the problem is real and continuing” and that the financial health of retailers and shopping centres is likely to continue to plummet. Preparation is key if retailers are to lessen the blow, he explains. “The lesson from the early 1990s is that identifying the vulnerable occupiers and putting contingency plans in place will shorten void periods, reduce leasing costs and maintain income.”
