The Times has published an interesting, although worrying article on the performance of shop openings in the second quarter of the year. The figures (provided by the Local Data Company) have shown an 84% decline in shop openings. The reason for this is apparently Brexit and waning confidence.
It is true that confidence (as well as other factors) has a key part to play in the decisions of retailers to open new stores and the fact that their confidence is apparently on the wane is not the most encouraging news. Especially for those of us who work in commercial property!
Can Brexit be blamed for this lack of confidence? Well, the decision to open a new shop carries with it a complex assessment of a number of factors such as; market conditions, confidence, competition and demand (to name but a few) and so the jury is out on whether this lack of confidence can be laid entirely at Brexit's door.
It is also clear that with the move to online shopping warehouses and distribution centres (particularly those on the outskirts of major towns and cities) are now in high demand. Perhaps this move to the online market has also contributed to falling shop openings?
Figures from the Local Data Company have revealed an 84 per cent decline in new shop openings in the second quarter compared with the same time last year.