More shops on the cards for Scotland but business rates still a barrier to growth

Scotland is one of just four regions identified by the UK’s top 100 retailers as still having potential for more shops alongside the South West, the West Midlands and London according to a report by TLT and global retail research agency Conlumino.

Travel hubs are seen to have the best growth prospects. But, although the historic attraction of guaranteed footfall and time-pressed consumers still stand, the ability for travel hubs to support click & collect services is part of the driver towards increased investment.

Perran Jervis, partner and head of retail & consumer goods at TLT said: “When looking at opportunities for growth, Scotland continues to offer great potential for retailers. Developments like the £41 million Edinburgh Gateway and Dundee Station will attract investment from retailers given the fit with their priorities to meet changes in the way people shop.”

But, business rates are still a millstone for retailers and a barrier to investment in new stores - over half (53 per cent) believe that business rates will have a more negative impact this year than last.

Mr Jervis added: “Business rates will likely hit investment in the high street, with 44 per cent of retailers planning to reduce the number of new store openings as a direct result. Others will reduce the size of existing premises or shut stores altogether.

“Landlords may also face rent review requests from retailers to minimise the impact of the recent rates revaluation, which will see some retailers facing rises of 45 per cent in the space of a year, despite transitional relief.”

Government plans to give local authorities the power to cut rates received mixed reviews. But, over a third were hopeful that local authorities would set rates more sensitive to local trading conditions.

Other barriers to investment in new stores included planning restrictions on new developments and the fragmented ownership and disjointed asset management prevalent in many town centres.

Mr Jervis said: “It is clear that more needs to be done to strengthen land acquisition powers to facilitate redevelopment of town centres. Doing so will help retailers compete with improved out-of-town retail developments and online shopping.”