Demand for prime shops fell significantly over the third quarter of this year, according to research from the Property Information Project.
After a small increase during the second quarter, demand for floorspace slumped by 17.2 per cent.
But many retailers appear to be looking for smaller, rather than fewer stores. The overall number of requirements fell by a more modest 7.3 per cent.
Demand has held up best at the smaller end of the market, for shops of less than 4,000 sq ft (370 sq m).
The number of requirements in this size band fell by just 3.5 per cent, while the overall floorspace sought fell by 3.4 per cent. Conversely, larger stores now account for less than 40 per cent of space required.
Despite its well-publicised problems, demand in central London remained relatively strong last quarter, but there has been a noticeable slackening in the Southeast.
Since the start of last year, five regions have seen demand slip rather more than average - the East and West Midlands, Scotland, Wales and Yorkshire & Humberside. The two northern regions have seen demand slashed by almost 50 per cent.
The Property Information Project's demand survey covers more than 220 retailers seeking strongly located shops nationwide.
The response rate for the latest survey was 68 per cent.
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