The number of shop vacancies is continuing to rise, with experts predicting some high streets will never return to their pre-recession days.
Town centre vacancy rates rose from 12% at the end of 2009 to 14.5% at the end of 2010, according to the Local Data Company (LDC).
The report claims that the many changes taking place in British retailing have left the high street shop facing "its greatest challenge for survival in its history".
The study has shown towns in Greater Manchester are among the hardest hit with four retail centres listed as having vacancy rates of more than 25 per cent.
Eccles has a vacancy rate of 29.7 per cent, ranking it the worst in Greater Manchester and 6th worst in the country for small towns with between 55-200 retail units on their High Streets.
Last year the MEN reported how two of the prime retail units on Church Street in Eccles were engaged in a bargain basement price war. A pound shop, which was undercut by a new rival calling itself the 89p superstore, responded by rebranding itself the 85p store.
Denton and Droylsden come in 9th and 10th in the same table of smaller towns, posting vacancy rates of 25.6 per cent and 25.3 per cent respectively.
In the category for medium sized town centres, which have between 200 and 399 shop units, Altrincham is ranked as having the second worst vacancy rate in the country at 29 per cent. The problem has accelerated in the last year with the vacancy rate increasing by eight per cent in Altrincham during 2010.
Manchester fares better compared with other similarly-sized cities in the UK having a vacancy rate of 19 per cent and ranking 23rd in the country.
The study has revealed a significant North-South divide, with northern and midland regions well above the national average with a 16.5% vacancy rate and southern regions below it at 12.3%.
And large centres have a significantly higher vacancy rate than average at 16.5%, compared with smaller centres at around 12%.
Large centres in the North East, North West, East Midlands and West Midlands all have average vacancy rates of around 19%, while Yorkshire and the Humber are even higher at nearly 21%.
Rates for large centres in London, the South East, the East and the South West are all around 14% while Scotland has the lowest regional rate at 12.6%.
Smaller centres in the North West have the highest vacancy at over 17% followed by the North East at 15%.
The report said retailers were set to face increasing prices, raised taxes and falling demand this year, with vacancies already at "cyclically high levels".
The report adds: "If it increases further a legitimate question should be whether it will ever fall back to the low levels seen in the thriving pre-recession times.
"The re-balanced economy that is the aspiration of the current Government is one in which domestic demand plays a less dominant role, and the traditional high street is coming under increasing pressure from online retailing and demand for larger formats typically only found away from the centre of town."
It adds: "Whichever way you look at it, fundamental structural changes are taking place in UK retail at the retailer and consumer levels.
"The very fact that 10 years ago the majority of a multiple retailer's stores were on a high street but now are migrating from the high street into shopping centres and out-of-town shopping parks begs the question of what will fill the high street of 2020 and beyond?"
LDC director Matthew Hopkinson said: "This report shows that many dynamics are impacting the health of our town centres up and down the country. The good news is that the rate of increase has remained lower than in 2008/9 but are we set for the national average to remain at 15%?
"The sad reality is that the number of vacant shops are increasing with certain areas of the country severely impacted and unlikely to recover. These high streets will never revert back to what they once were and so the composition of our town centres needs to change to reflect modern shopping needs."
Liz Peace, chief executive of the British Property Federation, said: "Many high streets will never return to their pre-recession days and, given the structural nature of these changes, the challenge for local authorities is to work with businesses including retailers and landlords to sensibly manage this transition and to be creative in looking for new roles and uses for empty shops.
"This change will seem threatening but will also provide opportunities to reshape our high streets with a broader mix of uses. It is important that the voice of businesses is heard in these discussions, and that together with local communities and local councils we redefine high streets' sense of place."
Tom Ironside, director of business and regulation with the British Retail Consortium, said: "High street retailing will continue to be at the heart of communities and a vital part of our overall retailing mix.
"The fragile state of the economy is compounding difficulties many of our town centres have been facing for some time. Economic recovery alone will not be enough to ensure they bounce back.
"Town centres need to be actively planned, managed and invested in. Key issues, including the costs of doing business, parking and access and crime, need to be addressed.
"The soaring number of empty shops shows how important a retail-friendly budget is. Next month, the Chancellor has a crucial opportunity to help high streets by easing existing cost pressures and resisting the temptation to impose new ones.
"And, as they set their own budget priorities, local authorities must consider the impact of their actions on ailing streets. For example, pushing up parking charges may be an attractive fundraiser but will turn customers away."
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