50 city centre shops vacant

Published on Saturday 11 April 2009 11:09

ONE shop or cafe is closing on Edinburgh's most prestigious shopping streets every week as the recession forces retailers to go to the wall.

New research by the Evening News has revealed the growing impact that the credit crunch is having on Princes Street, George Street and other prime shopping thoroughfares.

Since the turn of the year, 12 retailers have closed their doors for the last time. In the same period, only one new retailer has come into the city centre as the number of empty shops continues to rise.

In total, there are now 55 shops lying empty in the area between Princes Street and Queen Street – Edinburgh's prime shopping block. The tally of empty units now represents more stores than there are in the St James Centre, Edinburgh's biggest shopping centre.

Slowing demand from cash-strapped consumers and rising costs have been blamed for the strain being felt by retailers. Edinburgh city centre shops have also claimed to have suffered as a result of tram construction.

Michael Dixon, chairman of the Federation of Small Businesses in Edinburgh, said: "The Evening News survey sadly comes as little surprise. A lot of people will have recognised that closures are happening in a lot of streets, particularly in city centres.

"The difficulties in the economy are made that bit more difficult by local factors, not least the ongoing construction work. As many businesses look at forward plans and rent renewals, many are deciding not to continue."

However, he added that projects such as the Open for Business scheme – which promotes the city centre during tram construction – were helping to support businesses.

In the three months since the start of the year, only three new outlets have opened in the city centre. Of these, Howie Nicholsby's 21st Century Kilts was the only new business coming into the Capital.

Romanes & Paterson reopened its fire-hit Princes Street store, but also closed its temporary unit in the street's west end. The only other new shop was Pride of Scotland, which relocated to South St Andrew Street from its previous base at South St David Street.

While the wider economic climate can be blamed for the demise of outlets of national chains such as The Pier on George Street and Original Shoe Company in Princes Mall, the closures of the clutch of small shops, cafes and juice bars portray a more local picture of how businesses are being affected.

Councillor Tom Buchanan, the city council's economic development leader, said: "All businesses are finding this a challenging time. The banks are being much tighter on their lending to small businesses and this is having an impact."