EXETER'S retail sector is faring better than most other large shopping destinations in the country, according to new research.

A study by the Local Data Company has provided fresh evidence that the rate of vacant shops in the city is well below that of rival cities, including Plymouth and Bristol.

With 9.3 per cent of retail units empty at the last count – an improvement of 1.8 per cent on six months ago – Exeter has the eighth lowest vacancy rate among large centres in Great Britain.

City centre manager John Harvey said: "It comes as no surprise that we are in the top performing large centres nationally, with a very low vacancy rate.

"If you look at Exeter, we have a track record of investment, with Urban Outfitters, Republic and John Lewis coming to the city, and we expect Hollister to follow. The reality is those sorts of businesses and brands back winning cities.

"They only want to invest in cities that are moving in the right direction, and Exeter is doing that. I have no doubt that we will continue to see a positive trend on vacancy rates throughout this year."

Smaller centres nearby are also performing well, with vacancy rates in Exmouth and Sidmouth significantly below the national average.

But the report warns shop vacancy rates are expected to rise in 2012 as a result of weak consumer confidence, rising unemployment and a significant number of leases coming to an end. The proportion of retail spending captured by the High Street is continuing to fall, with supermarkets, out-of-town centres and the internet taking a growing share.

Matthew Hopkinson, director at the Local Data Company, said: "The reality is that the odds are stacked against a positive take-up of shops and the new reality of 48,000 empty shops is here to stay unless an alternative use or purpose can be found.

"Technology is driving consumer behaviour to a world of engagement, entertainment and the ability to shop where, how and when we like. Town centres need to adapt to this changing environment if they are to survive and thrive."

Mr Harvey added: "This is the toughest economic environment facing town and city centres that anyone can remember, but I'm convinced that Exeter is better prepared than many centres to ride out these tough challenges because of the investment and the change we have delivered already.

"We have to keep up that process of change, renewal and investment to make sure we continue that success."