UK's economy reflected in divided and increasingly vacant high streets

Across Britain, high streets are bearing the strain of a slowing economy, with rising costs, weak footfall and shifting consumer habits reshaping communities and deepening the economic divide now playing out in town centers nationwide.

On the Uxbridge Road in West London, local resident Andrew Williams is campaigning for change. He wants his high street cleaned up and revitalized. 

"We need a bit more variety of shops," he says. "A lot of residents think it could be better — it could be a lot better. I wouldn't mind a few more coffee shops and cafés where you can sit down with your family and have a nice breakfast on a Sunday morning."

Residents here say the shops no longer reflect their community or its needs. And the data paints an equally stark picture. 

Vacancy rates are at their highest in nearly a decade, with more than one in eight high-street premises now standing empty — and rising energy, wage and supply-chain costs have pushed overheads up by an estimated 20–30 percent, forcing many small businesses to shorten hours or reduce staff.

Andrew Goodacre, CEO of the British Independent Retailers Association, says the challenges are undeniable. 

"There's been a lack of investment and support for small businesses, changing consumer behaviors with the growth of online shopping, and retail crime has exploded in the last 18 months," he tells CGTN. 

"Yet despite all that, two-thirds of all products are still bought in shops on the high street. There's a massive opportunity – but businesses need to understand their customers and offer what they're looking for."

Two-tier economy

But just a short distance away, a contrasting story unfolds. In affluent Richmond, the high street is thriving. Financial journalist Laurie Laird says this split reflects a much bigger issue. 

"It really is a two-tier economy," she tells CGTN. "Finance and law bring huge wealth to certain areas, but the rest of the economy — retail, restaurants, minimum-wage jobs — is really struggling. The UK high street reflects the UK."

The divide is visible in Oxford too. Tourism, including visitors from China drawn by the city's Harry Potter heritage, helps sustain the center — yet locals still feel the pinch. 

"The cost of living has increased," says one younger shopper, who says she's had similar feedback from her colleagues and friends. Another, more comfortable retiree says, "Generally, I don't spend any more – I don't think I'm any worse off than I was before."

According to the independent think-tank Centre for Cities, every 1 percent increase in local income reduces vacancy rates by 0.8 percent. But those vacancy rates are currently hugely variable across the country.

In London, 7.4 percent of high-street shops have closed; in lower-income centers like Bradford, Stoke and Wigan, the figure rises to 16 percent. And business confidence has recently fallen to a two-year low amid ongoing inflation and economic uncertainty.

Traditional retail now makes up less than half of many high streets, replaced by barbers, nail salons and charity shops. Whether Britain's high streets can survive the turbulence is unclear — but those that adapt quickly may yet thrive again.