Is it such a bleak picture for businesses in Inverness city centre?
HIGHLAND businesses which have faced a challenging 2022 may see little respite in the coming 12 months.
From lockdowns and social distancing restrictions to rising energy costs and spiralling inflation, many firms have had to call it a day.
Administrators were called in to M&Co earlier this month, with closing down signs now on display in its Academy Street site in Inverness.
Phase Eight and Yours stores in the Eastgate Shopping Centre are also set to close tomorrow.
Economist Tony Mackay said: “There have been many more shops and other retail closures than openings this year, and I fear that will continue during 2023.
“The latest official estimates show that economic output increased by 4.1 per cent in 2022, but inflation was 10.5 per cent meaning that in real terms average personal incomes fell by over six per cent.
“Consequently, most people have reduced their spending, with obvious implications for the retail and service sectors in the Highlands.
“There has also been a big switch to online shopping, which has hit many physical outlets in Inverness and the other towns.
“The economic forecasts for 2023 are poor so, unfortunately, I expect more closures and job losses. I do not expect any significant improvement until 2024.”
However a number of new retailers and restaurants have also opened in recent months, seemingly undaunted by the challenging climate.
Beauty offerings in Inverness have grown, with Rumours Salon and Boutique opening in Union Street, followed by Timeless Salon in Market Brae at the start of this month.
Highland Hyacinth Fine Jewellery and Piercing brought a new offering to the city in Lombard Street and new clothing store The Highlander opened in the High Street just last week, along with the Good Craic Café.
Popular eating establishment Escobar recently reopened after a fire forced its closure in September and the new food hall in the Victorian Market has seen a gradual filling of units, with Sushi Inverness the latest opening.
Bar One has relaunched as sports bar The Imperial while Lauders pub has reported its biggest takings ever for two weeks in the lead up to Christmas.
Last week the Scottish Government announced plans to freeze business rates for 2023-2024, offering firms a helping hand though other costs continue to rise.
Inverness Chamber of Commerce deputy chief executive Paula Nicol said: “The outlook for business in general remains challenging, and no more so than in the retail and hospitality sectors. “Faced with ongoing staffing difficulties and increases in supply chain and energy costs, the freeze on business rates announced in the Scottish Government’s budget on Thursday will come as a welcome relief to many.
“And while it is encouraging to see some new businesses opening in the city centre, this announcement will hopefully attract others to consider the many vacant premises we unfortunately still have in Inverness.
“It is clear, though, that city centre retail is changing and we are likely to see more mixed use developments in future, such as the much anticipated Union Court, with a combination of retail, leisure, commercial and residential premises.”
“The recently refurbished market hall area of the Victorian Market is also extremely welcome, creating a fantastic place and experience for visitors, and it is those independent businesses with something unique and different to offer that are most likely to thrive.”
