Analysis released today by retail data consultancy the Local Data Company reveals that in 2020, the number of vacant units in the City of London increased by 47 per cent from 174 at the end of 2019 to 255 at the end of 2020, as workers stayed home during the COVID-19 pandemic and footfall fell across the district.
In 2020, the vacancy rate increased by 3.5 per cent in the City compared to an average increase of 1.3 per cent for Greater London and 1.6 per cent for the whole of GB. This reflects how this location has been impacted more by COVID-19 than the rest of London and GB as a whole. Vacancy is now at the highest level in five years in the City where retail stock is densely supplied with food to go units, pubs, bars and restaurants, usually serving the busy working population, which for almost a full year, have been working from home, often in the outer, more residential areas of London.
54 per cent of all closures seen in the City in 2020 were hospitality and leisure units, of which 83 per cent were national chains. Chains have been hit hard by the pandemic, especially those which rely on trade across central London. Many brands have had to rationalise their London estates, closing locations where footfall has declined significantly.
Lucy Stainton, Head of Retail and Strategic Partnerships at the Local Data Company commented: “The City of London has been dramatically hit given that the vast majority of the worker population, on which these businesses are almost solely reliant, went away overnight as the Government’s initial work from home order kicked in. The fact that a significant number of retailers deemed ‘essential’ have chosen not to open in this location throughout various lockdowns, despite their ability to trade, is a further indication of just how low current consumer demand is in the City.
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