The challenge posed by empty shops in Wales is “too big for the tools we are using”, a property expert has warned.
Chris Sutton, a chartered surveyor, said a lack of coordinated action meant cities such as Newport – which in 2021 was found to have more empty shops than any other city in the UK – had floundered.
Mr Sutton said the Welsh government and councils needed to be “heavily involved” in solving the problem, pointing to towns like Caernarfon which had found ways to thrive.
The Welsh government said it was working with trade bodies and trade unions to find solutions, while Newport council said footfall in the city was rising.
Despite millions of pounds of public funding and a number of reports into the issue over the years, many Welsh high streets have continued to decline.
A recent study found most small businesses wanted to be in town centres, but many were looking for office or workshop space rather than retail.
Commercial Street, Newport’s main shopping street, remains a patchwork of boarded up premises and vacant stores.
But despite calls for action, many visibly empty shops are not available for use.
Some are tied up with long leases or are held by sometimes anonymous landlords who are unwilling to rent them out.
Mr Sutton said the problem was not a lack of ideas but a lack of coordinated action.
“We don’t need another report,” he said. “We need implementation.”
Mr Sutton, the former chair of Confederation of British Industry (CBI) Wales, said the sometimes confused ownership of empty shops also restricted options.
“Our retail centres are probably the location with the most mixed ownerships,” he said.
“Trying to masterplan regeneration is incredibly difficult when ownership is so fragmented.”
He said larger empty stores needed to be refurbished “and perhaps subdivided down to smaller units” to attract new tenants.
Away from Commercial Street, independent businesses who have revitalised one of the city’s arcades said Newport should not be judged on the state of its main shopping street.
“I think it’s kind of like one big family in this arcade. It feels a community, as opposed to a bunch of just separate shops,” said Jax Jones, who co-owns the Mythos tattoo studio.
After training at another shop, he opened his own studio in the city centre but felt frustrated that the wider strategy in Newport appeared to be on enticing the big brands.
“Newport, at least for the last 10 years or so, has really put that focus on big business to the detriment of independents,” he argued.
He said the decline of stores like Debenhams provided an opportunity to support smaller local businesses.
“Given the chance, we can really see that independent business can thrive,” he added, with “even a taxidermy shop” doing well in the arcade.
‘Look beyond the empty shops’
Newport City Council disputed the 2021 Centre for Cities data that showed the city had the UK’s worst empty shops problem and said it was working to reduce vacancies and support independent businesses.
“Transforming the city centre’s fortunes is not something that can happen overnight or by the council on its own,” said councillor James Clarke.
The council said footfall was rising – up 2.6% in 2024 – and nearly two thirds of city centre units were now occupied by independents.
It also pointed to successful regeneration projects like Newport Market, and urged people to “look beyond the empty shops” to see the progress being made.
Getty ImagesCaernarfon, in Gwynedd, is among the town centres which are thriving despite the setbacks elsewhere.
“It’s a small town with huge character,” said Sue Kirk, whose souvenir and toy shop is in the centre of Caernarfon.
She said the ease of buying online meant she had needed to “find things that are not readily available on the internet”.
“And if you can fill that gap and appeal to your customer base, you have a winning formula,” she said.
The local Business Improvement District (BID) in Caernarfon works to keep shopkeepers informed of events and address problems collectively.
For Ms Kirk, it comes down to a simple idea: “Collaboration.”
“[There is a] strong connection between business owners, so that if we have a problem or if we have an idea, we can move together,” she added.
Nigel Strain, manager of the BID, said the lack of a shopping centre in Caernarfon had allowed the high street to thrive.
“We don’t have a shopping centre. People might think it’s a bad thing, but I think it’s a very good thing,” said Mr Strain.
“We’ve got a lot of commercial properties that are smaller, easier to fill and ideal for the many independent businesses that we’ve got here in town.”
Mr Sutton said other towns across Wales would need support in order to achieve similar results.
“We need local leadership,” he said, “but also the local authority and Welsh government need to be heavily involved in this, and they really need to drive it forward.”
He said there was also the opportunity for “regeneration companies and development corporations” to coordinate and tackle empty shops.
He added a change in how businesses were taxed could make a difference.
“We should be incentivising private sector development through wider use classes and property taxation reform,” Mr Sutton added.
The Welsh government said in May that it was considering cutting business rates for smaller retail shops to help them compete with online retailers and to create “more vibrant high streets”.
A Welsh government spokesperson said retail was “experiencing a period of challenge and change”.
“Our retail action plan, developed in partnership with sector representatives, sets out the actions we are taking to ensure a successful, innovative, sustainable and resilient retail presence in Wales that offers fair, secure and rewarding work.”
The spokesperson also said the government’s transforming towns programme would provide £40m for 2025 and 2026 to develop town centres and “breathe new life” into spaces.
