Discount retailers snapping up former Woolworths stores

The changing face of the British high street is revealed eight months after the last Woolworths shops closed, with a large number of discount stores now taking their place.

Of the 360 stores under new occupation, more than one third (134) have been taken over by discount retailers, new research shows.

Shops such as B&M Bargains, 99p stores and Poundland have sprung up everywhere from Balham, south London, to Ballymena in Northern Ireland, reflecting the strength of the market for cheap goods during the economic downturn.

About 60 per cent of the 807 stores vacated by Woolworths have either been let or are currently under offer, according to the research by commercial real estate services company CB Richard Ellis (CBRE).

But a number of the shops remain deserted, forming blots on urban landscapes around the country. In Ashby de la Zouch, Leicestershire, the shop front of a neglected Woolworths branch has fallen into disrepair, with several of the once bright red letters now missing.

A branch in Swadlincote, Derbyshire, remains shuttered, while Stroud's store also lies empty.

Craig Phillipson, managing director of retail consultancy Shopworks Ltd, warned of a "spiral of decline" in town centres caused by the disappearance of Woolworths.

He said: "Woolworths acted as an anchor store, a magnet. It gave people a reason to go to a shopping centre."

With the familiar name gone, shoppers might be more likely to stay away, he said, risking a knock-on effect on other businesses in the area and the desertion of local high streets. The shabby appearance of some of the unoccupied stores was probably a result of cash-strapped landlords failing to look after the buildings, he suggested. There have been a number of success stories, however.

Grocery outlets such as Tesco and Iceland have taken over 110 stores, while fashion retailers such as New Look and Peacocks have occupied 53, CBRE's figures show.

The branch in Dorchester, Dorset, was taken over by an enterprising former Woolworths manager and reopened under the name Wellworths. After about three months of trading, Claire Robertson, 34, welcomed her 100,000th customer through the door.

The store has pick-and-mix but has abandoned children's clothing.

Instead it has new lines including a craft and pet section with a stronger focus on products by local firms including one which makes wooden toys.

Meanwhile the longest trading branch, in Croydon, south London, was snapped up by fashion clothing chain H&M. Iceland has bought the largest number of stores, followed by B&M Bargains and 99p stores.

There is some regional variation in the number of shops still standing empty, but little evidence of a north-south divide.

Out of town locations have fared the worst so far, with 12 of the 15 such branches still awaiting a suitor.

Those in South West England and Scotland have also proved less popular, with 96 of the 185 branches (52 per cent) in the South West and 37 out of 74 (50 per cent) in Scotland yet to be taken over by another retailer. Those in Ireland and South East England have found it the easiest to attract buyers. Only two of the 19 stores in Ireland (11per cent) and 64 of the 213 in the South East (30per cent) are still available, the data shows. The difference in rates of take-up is thought to be related to the sites and sizes of individual stores and how attractive they are to retailers, rather than to geographical location.

Ciaran Bird, CBRE's head of UK retail, said: "Given the current economic conditions, the challenges facing retailers looking to expand in such a tight market and the fact that potential buyers are waiting until leases are returned to landlords, the speed at which Woolworths units have been taken up is remarkable."

Mr Phillipson added: "It's probably better than was expected."

The last remaining Woolworths stores closed their doors for the final time in January after administrators Deloitte failed to find a buyer for the ailing business.