10th March 2026
High streets across the UK are under pressure, but in Caithness the story is more complex — and, in some ways, more hopeful. Wick and Thurso face the same structural challenges seen nationwide: rising costs, shifting shopping habits, and the long shadow of online retail.
Yet Caithness also has unique strengths: strong community identity, a loyal local customer base, and a steady stream of visitors drawn by the NC500, wildlife, and heritage.
The future of the Caithness high street will not look like the past, but it is far from bleak. Instead, it is evolving into something leaner, more service‑driven, and more rooted in local needs.
A High Street Under Pressure — But Not Without Hope
The pressures are real. Rising energy costs hit Caithness harder than most regions because many premises rely on heating oil or LPG. Transport costs are higher too, with goods travelling long distances to reach Wick and Thurso. Footfall is lower than in urban centres, and the region's ageing population means less demand for traditional retail. Even charity shops — normally the most resilient high‑street tenants — have begun to close in parts of the UK, signalling how tough the environment has become.
Yet Caithness has advantages that many towns envy. Rents are lower than in Inverness or central Scotland. Community loyalty is strong. Tourism continues to grow, especially in summer. And the Caithness Area Place Plan emphasises local enterprise, community spaces, and essential services — a realistic and grounded vision for the future.
The result is a high street that will survive, but in a different form. The era of rows of traditional shops is fading. What is emerging instead is a high street built around services, food, experiences, and tourism — the things online retail cannot replace.
What Will Succeed in Wick and Thurso
Not all businesses face the same prospects. Some models are struggling, but others are thriving and will continue to do so.
Essential Services - The Strongest Performers
These businesses are the backbone of the modern high street because they cannot be replaced by Amazon or online shopping. In Caithness, they are consistently busy and resilient.
Hairdressers and barbers
Beauty salons and nail bars
Phone and computer repair
Tailoring and alterations
Key cutting, cobblers, dry cleaning
Trades and DIY supply shops
These businesses benefit from predictable local demand and low competition.
Food and Drink - Social Anchors
Cafes, bakeries, takeaways, and community pubs continue to perform well. They act as social hubs in Wick and Thurso, drawing regular footfall even when retail is quiet. Small restaurants with strong local trade also remain viable, especially those with simple menus and low staffing needs.
Tourism‑Linked Retail - Seasonal but Profitable
Tourism is one of Caithness's greatest assets. Shops that cater to visitors — especially those offering local crafts, outdoor gear, wildlife‑themed goods, or heritage‑linked products — can do well during the busy months. While seasonal, these businesses often generate enough summer revenue to sustain quieter periods.
Hybrid and Experience‑Led Businesses
The future of retail lies in experiences. Shops that combine retail with cafes, workshops, or events create reasons for people to visit in person.
Examples include:
Bookshop + cafe
Craft shop + workshops
Bakery + deli
Zero‑waste shop + refill cafe
Fitness studio + retail
These models increase dwell time and build loyal communities.
Hospitality with Accommodation
Pubs with rooms, small hotels, B&Bs, and hostels remain attractive to buyers. Tourism demand is steady, and accommodation provides a reliable revenue stream that stabilises the business.
Risks Facing New Businesses in Caithness
Opening or buying a shop in Caithness carries risks — some shared with the rest of the UK, others unique to the region.
Financial Risks (High)
Energy costs are a major burden, especially for older buildings. Transport costs for stock are higher than average. Footfall is modest, and tourism is seasonal. Businesses must be lean, efficient, and prepared for winter slowdowns.
Market Risks (Moderate-High)
An ageing population means lower retail spending. Online competition remains strong. Workforce shortages are made worse by the region's housing bottleneck. Businesses that rely on high‑volume sales are particularly vulnerable.
Operational Risks (Moderate)
Staffing can be difficult, especially for hospitality. Insurance and compliance costs are rising. Many premises require upgrades to meet modern standards.
Location Risks (Moderate)
Wick offers cheaper rents but lower footfall. Thurso has better footfall but more competition. Rural villages offer strong community loyalty but very limited passing trade.
Support and Mitigation
Caithness benefits from strong local support networks, including the Caithness Business Fund, Business Gateway Highland, and the North Highland Regeneration Fund. These reduce startup risk and help new businesses adapt.
The Road Ahead - A High Street That Evolves, Not Disappears
The Caithness high street is not dying — it is changing. Traditional retail will continue to shrink, but services, food, tourism, and hybrid businesses will fill the gaps. Wick and Thurso will not return to the high streets of the 1990s, but they can build something more resilient: a high street rooted in community, experience, and local identity.
For entrepreneurs, the message is clear. Success is possible — but only with the right business model, the right premises, and a realistic understanding of the local market. Caithness rewards businesses that are adaptable, community‑focused, and energy‑efficient. Those who understand the region's strengths and challenges will find opportunities even in a difficult climate.
Further Reading
Economic problems for Highland in 2026 and what might solutions look like - Listing A Few North Businesses On The Market
https://www.highland.gov.uk/download/meetings/id/84873/5_caithness_area_place_plan
Caithness Area Place Plan
Pdf 65 Pages Discussed on 28 April 2025
For Advice Contact
Highland and Islands Enterprise - www.hie.co.uk
Highland Council
https://www.highland.gov.uk/economy-regeneration