Cardiff commercial rent drops by up to 70% to try and entice retailers. With businesses closing due to excessive outgoing and lack of profit, landlords are decreasing commercial rent to entice businesses to set-up- shop in the capital.
The number of empty shops in Cardiff has increased from 9.7% in October 2008 to 15.8% last October. The concerns of purchasing shop space in Cardiff City Centre has become a risky game as the hit from the recession and people being more restrained when it comes to parting with their money.
Landlords have made the decision to cut rent costs and contract terms, to allow businesses some leeway. The rent for commercial property space on Queen Street and The Capital has fallen by almost a third over the past six years. But this still doesn?t seem to be enough, as businesses still have to close because they simply can?t keep up with the payments, as their profit is low.
'Competing with the likes of chains such as Wetherspoons and Brains, where the prices are a lot lower, is near impossible.'
An example being Fire Island formerly owned by Beatbox Bars Ltd (who trade Buffalo Bar & 10 Feet Tall), simple had to shut down after eight months even with the £250,000 investment from the Welsh Government. Beatbox are also seeking buyers for their other two bars as annual turnover went from £1.5 million between 2005 and 2009 to major cash flow struggles over the last year. Both bars are/(were?) alternative edgy hotspots in Cardiff, with live music, gigs and a little something different, but somehow they seem to be loosing their niche audiences. Why? I suspect because they have to raise prices to cover costs and because people are not as quick to spend there hard earned cash. So competing with the likes of chains such as Wetherspoons and Brains, where the prices are a lot lower, is near impossible, even if you can offer something a little less ?bog standard.?
'Businesses should be looking at every option to prevent closures.'
So it is vital bars address new ways to stay afloat, save money and maximize profit. From our angle, energy is something that seems to be pushed down the bottom of a lot of businesses ?to do list? but from our experience could save them a large percentage of money and help to lessen the load. And with money situations as they are, businesses should be looking at every option to prevent closures.
'Cardiff Zero launches this week.'
amber energy launched Cardiff Zero this week, to help our local area?s business base, with aims to reduce energy costs, reduce carbon emissions and have energy confidence. The scheme exclusive to Cardiff could really benefit some of these businesses that need a helping hand. We plan to unite all the businesses involved into a basket, to allow larger savings to be made on top of individual savings.
With popular hotspots in Cardiff on their last legs, strike whilst the iron is hot and look into what you can do for business before it is too late.
If you think we could help, please get in touch for more information about energy reduction & Cardiff Zero.