THE recession has led to the closure of nearly 26,000 shops across the UK, turning once-thriving high streets into ghost towns, new figures reveal today.
One in ten shops shut their doors this year as weak consumer spending and credit pressures hammered businesses.
More than a fifth of shops in local malls, department stores and catalogue shops have fallen victim, closely followed by womenswear and
childrenswear shops, with 18 per cent closing in the period.
The research, by the Local Data Company, also shattered the perception that retail chains are more secure than independent retailers.
Both have been hit hard by the slump, seeing 9.9 per cent and 10.1 per cent of failures respectively since January, the research showed.
The figures come months ahead of a planned increase in business rates which landlords fear will put extra pressure on tenants.
Property owners also face the burden of paying full business rates on empty premises, despite there being little demand for new space.
Liz Peace, chief executive of the British Property Federation, said: "No one is escaping the recession and these figures show the real dent caused by our broken high streets.
"Rather than continue making empty promises, it is vital that the government looks at offering some real help to businesses through a sensible mitigation of the impact of next year's rise in business rates and a cut in empty property rates for both landlords – and tenants who cannot sublet vacant space."
Corin Taylor, senior policy adviser at the Institute of Directors, said: "In the middle of the recession, many businesses are desperate to let out their properties but are unable to do so, and it makes no sense for the government to be piling on empty property rates at the same time."
Stephen Robertson, the director general of the British Retail Consortium, said: "Government must cushion retailers from the worst effects of next April's business rates revaluation, keep any minimum wage rise below one per cent next year and scrap the 2011 National Insurance increase – a tax on jobs.
"Landlords should contain rents and service charges and other crucial issues, such as easier parking and proper investment in town centres need to be addressed if retailers are to thrive."
The Federation of Small Businesses said town centre high streets are changing forever.
Tony Cherry, the national vice-chairman, said: "What we really need to see is a change in people's shopping habits. We would like them to spend more money with local retailers instead of going for the safe and easy option of parking in the local supermarket.
"Unfortunately supermarkets are now trying to dominate every aspect of retail under one roof."
He said local authorities could support town centre retailers by reducing or scrapping parking charges.
Rising rents have also played a role in pushing retailers to the edge, said Jonathan Newns, the Northern head of in-town retail at property agency King Sturge.
He added: "The majority of leases are upward only. When times are tough, the rents don't fall and put a lot of smaller companies out of business."
The Local Data Company tracked the fortunes of 251,462 shops in 705 town centres in the nine months to September. The company said central Leeds had a 19 per cent vacancy rate.
The company recorded 118 new openings against 328 closures.
Sheffield city centre had a 15 per cent vacancy rate, with 29 new openings and 68 closures. Central Hull was the worst affected, with a vacancy rate of 20 per cent, with 11 new openings against 58 closures.
Places like Bridlington and Scarborough fared better as they are more geographically isolated and have a high residential population supporting local stores, said researchers.
