Top stores check out of Capital in droves

MORE big-name shops have shut down in Edinburgh than anywhere else in Scotland, new research has revealed.

Data published today shows that 123 multiple retailers have closed down in the Capital since the start of last year, which is more than any other Scottish town centre.

Many of the closures have come about because of national companies that operate in the city falling into administration, such as Birthdays, Zavvi, Habitat and the Thresher, Victoria Wine and Wine Rack operator First Quench.

The city has seen established retailers open up 107 shops in the city in the same period, but the "net closures" figure of 16 is also larger than in any other Scottish centre studied.

Business experts admitted that the figures are a concern for the city, but it is hoped that the imminent arrival of big-name brands like Primark and Apple can help boost the flagging retail fortunes of Princes Street and surrounding areas.

Graham Bell, a spokesman for Edinburgh Chamber of Commerce, said: "It is quite clear that people are hanging on to money in ways that they would not have done in previous years and retail is a key sector that has taken a hit because of that.

"The fact that the greatest number of net closures is in Edinburgh is a matter of concern but, at 16, given the depth of the financial crisis, it is not a huge concern.

"Why has Edinburgh taken a bigger hit? Glasgow has a good record as a retail centre and shops tend to be more concentrated around Buchanan Street and Sauchiehall Street. Edinburgh perhaps has fewer centres to start off with and clearly people have been struggling in some parts of the city."

The figures, compiled by business advisers PwC and The Local Data Company, show that 117 multiple retailers closed down since the start of last year in Glasgow, while 113 opened.

Of the eight Scottish centres studied, only four saw more stores open than close during the period. Aberdeen had 63 new openings and 59 closures, while only 23 stores shut down in Dundee, compared with 47 that opened.

Councillor Tom Buchanan, the city's economic development leader, said: "We have a number of high-profile brands in the pipeline and the level of interest in our city centre remains high.

"Primark, Apple and Wagamama are set to open later this year and we will soon be announcing the new Assembly Rooms tenants on George Street.

"Of course, it's also worth pointing out that this study does not include independent retailers, of which Edinburgh has a much higher proportion compared with similar-sized UK cities."

Scotland was the hardest hit part of the UK, according to the research.

Bruce Cartwright, head of business recovery services at PwC in Scotland, said: "Over the next six months, retailers will continue to struggle.

"The combination of rising inflation, a squeeze on consumer spending and dented consumer confidence leading to people increasingly trying to find the best deal online has made life difficult for store-dependent high street retailers who have seen a drop in sales and reduced footfall."