Inverness city centre is experiencing a retail revival, with new figures showing that empty shop units on the high street have decreased by 30% over the past 18 months. The improvement bucks the trend of declining high streets across much of the UK and has been driven by a combination of reduced business rates, landlord flexibility, and growing consumer preference for independent retailers.
Highland Council’s town centre first policy, which prioritizes small business support and actively discourages out-of-town retail development, appears to be delivering results. Of the 23 units that have been filled since late 2024, 19 are independent businesses rather than national chains. Coffee shops, vintage clothing stores, artisan food producers, and specialist bookshops have led the revival.
I walked the length of High Street and Academy Street yesterday, and the transformation from even two years ago is striking. Where boarded-up windows and ‘To Let’ signs once dominated, thriving small businesses now trade. The streetscape feels vibrant again, with pedestrians actually stopping to browse rather than hurrying through on their way elsewhere.
The revival has multiple causes, but business rate relief for independent retailers appears to be the most significant factor. Highland Council’s decision to offer 75% rate reductions for businesses occupying previously empty units in the town centre has dramatically improved the economics of opening physical retail premises. Combined with lower commercial rents as landlords compete to fill vacancies, the barriers to entry have fallen substantially.
Sarah MacKenzie, who opened a zero-waste refill shop on Church Street in January, described the business rate relief as “the difference between possible and impossible” for her venture. Without it, she calculated that her business would need to generate an additional £12,000 annually just to break even, a threshold that would have prevented her from opening at all.
The shift toward independent retailers has changed the character of Inverness shopping. Rather than competing directly with online retail and out-of-town superstores on price and convenience, city centre businesses now emphasize experience, expertise, and community connection. Customers increasingly value the ability to speak with knowledgeable staff, examine products physically, and support local businesses.
However, challenges remain. Footfall is still approximately 15% below pre-pandemic levels, and many businesses operate on tight margins that leave little room for error. The withdrawal of major chains like Debenhams and Topshop has left large vacant anchor units that remain difficult to fill, creating dead zones that undermine the wider street environment.
Parking costs and availability continue to be a source of frustration for both shoppers and retailers. Inverness city centre’s limited parking capacity, combined with charges that some view as excessive, encourages trips to retail parks where parking is free and plentiful. Highland Council is examining options to improve the situation, but financial constraints limit available solutions.
The success of Inverness’s high street revival has attracted attention from other Scottish towns facing similar challenges. Elgin, Fort William, and Stornoway have all sent delegations to study Inverness’s approach, hoping to replicate elements of the strategy in their own communities.
Critics of the business rate relief policy argue it represents an ongoing subsidy that distorts market competition and costs the council revenue it can ill afford to lose. However, council economic development officers counter that empty units generate no rates at all, and that even reduced rates represent income whilst also creating employment and supporting the wider town centre economy.
Looking ahead, the key question is sustainability. Can these new independent businesses survive once rate relief periods expire and they face full commercial costs? Will customer habits shift sufficiently to support a revived high street, or will the convenience of online shopping and retail parks reassert dominance? The next two years will provide answers that carry implications far beyond Inverness.