Retail is the heartbeat of many Welsh towns and cities providing jobs, driving footfall, supporting local supply chains, and acting as a catalyst for wider economic activity.

Whilst it remains the third-largest sector by employment in Wales, one in six Welsh shops now stands empty although paradoxically perhaps, research has shown that demand for retail space is rising with small businesses wanting to return to the high street and independent retailers growing in number.

So, what is going wrong and why is there a mismatch between supply and demand?

Despite the availability of space, securing a suitable retail unit can still take more than six months, and many of the shops that appear empty are effectively inaccessible, with no identifiabl

e letting agent linked to vacant properties in 40% of locations across the UK. In many cases, the owners are based outside Wales (often outside the UK altogether), resulting in absentee landlords with no local connection, no accountability, and no motivation to support high street revival.

The current business rates regime also compounds the problem as for too many retailers, the cost of rates exceeds the cost of rent which is enough to make a unit financially unviable. Pop-up shops, which are often exempt from paying rates, have become the more attractive option but have also created a perverse incentive namely to stay temporary or stay out altogether, with long-term tenants effectively punished for committing to a lease.

Even when a business manages to locate........

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