Optical practices are closing but at a lesser rate than other retailers in the High Street.

Figures from the Local Data Company show that 10% of retailers closed between January and September this year. From a survey of 251,462 firms across more than 705 centres across the UK, 25,090 closed. In London alone, 7,628 firms shut their doors in the first nine months of the year. The British Property Federation has called for greater Government help to support retailers.

However, it has been reported that the survey found ‘chemists, toiletries and opticians’ have fared the best, with 6.8% of stores closing, compared to fashion and footwear which saw a fall of 17.9% of stores (Retail Week, October 27).

Responding to the news the British Property Federation (BPF) has called for greater government help to support retailers. The trade body has also been leading a charge to cut service charge costs for businesses and make business leases more transparent.

“The figures follow last month’s GDP figures and come months ahead of a planned increase in business rates which will put extra pressure on to tenants,” said a BPF spokesman. “Many retailers will see their rates bills massively increase because they have been re-assessed based on property values on April 1 2008. Research by BNP Paribas Real Estate has shown that the government has misled firms over the effects of the change.

“The bills companies face from April 2010 will be the first based on this revaluation. There are large regional disparities in business rates with retailers in the south west and London facing the biggest increases.
Retailers pay a quarter of all business rates, despite being responsible for 8% of GDP.

“Added on top of this, many retailers, like landlords, have empty space they cannot re-let because of the recession.

“The government is continuing to hit these firms with empty rates, which Stewart Jackson, the Conservative regeneration spokesman, dismissed as “the most cack-handed thing Labour could have done”. He added that “even Prescott wasn’t that stupid” but then admitted that the Tories would not actually re-apply empty rate relief if they won power.”

Liz Peace, chief executive of the British Property Federation, said:
“Business secretary Lord Mandelson said the government’s empty property tax was ‘good for business’. But if charging a hardship tax on firms’ vacancies is the government’s idea of helping business then I’d hate to see him helping an old lady across the road.

“Clearly no one is escaping the recession and it’s vital that ministers offer 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. In order to maintain investment in retail regeneration, developers need to be able to maintain returns which are generated from keeping rents at a certain level.”

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