The Retail Risk Index analyses the health of the UK’s towns within a weakening retail economy to form an index of most and least risky towns. Its aim is to show you as an investor where you should be investing your money in retail.
Retail Risk Index launch event
Key points The index was compiled through detailed assessment of retailer financial health, the volume of unhealthy retailers in the top 100 towns analysed, supported by analysis of the number of vacant units and charity shops in the towns
Nationally less than half of the units analysed are occupied by retailers considered ‘secure’. 10% of units in the top 100 towns are very high risk, 25% pose ‘high’ or ‘borderline’ risk and 20% are either charity shops or vacant
Despite having a most and least risky top 10, there are opportunities throughout for investors. It is important to know where to invest and where you may need to revise your strategy
Even the most dominant towns are not immune to risk and within the most risky towns there are thriving areas – if you know where to look.
The Retail Domino Effect
Fundamental to our logic and methodology is what we have called 'the retail domino effect' (as illustrated below). This is mass vacancy acting as the catalyst which leads to a town's downward spiral.