Britain's high streets could be ghost towns when the recession ends, if, as some expect, the consumer slowdown triggers a sharp rise in stores closing. According to a survey by PricewaterhouseCoopers (PwC), one in five shops could be “void” by the time that the economy picks up again.

The impact of the credit crunch on high streets will be exacerbated by the growth of internet shopping and by impact of new shopping centres, such as Cabot Circus, in Bristol, and Westfield White City, in West London. PwC estimates that 3,600 shops could be seeking new tenants if 10 per cent of national retailers get into financial difficulty over the next year.

The research comes as the British Retail Consortium argues that consumer confidence has fallen to new lows, with 69 per cent of people stating that it is a “bad time” to buy goods.

Barry Gilberston, a PwC partner, said: “What we are seeing is going to have a huge impact on the shopping environment, in particular high streets. The problem is who will take over the empty units? A few years ago coffee shops came in, but now there is really no one waiting in the wings.”

About 30 retailers have gone into administration so far this year, including chains such as Dolcis, Stead & Simpson, Mk One, MFI and Rosebys, the home furnishing group. In most cases, a chain will emerge from administration with a far smaller store portfolio.

PwC worked on eight restructurings or formal administrations of national retailers in the autumn of 2007. On average 27 per cent of the store portfolio was closed or sold. Of 20 insolvencies this year the average number of stores “jettisoned” is 36 per cent. Jessops, the photography retailer, closed 81 stores in a move critical to its survival.

New shopping centres equivalent to eight Bluewaters are being opened between this year and next, including Westfield White City. The £1.6 billion centre is expected to have a big effect on the West End of London and Kensington High Street.

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