Accrington has the lowest proportion of empty shops in the north west.
The Local Data Company (LDC) report into retail and leisure premises found the town is thriving compared to Preston, Burnley and Blackburn, as well as Manchester and Liverpool.
It also found that chains are faring worse than independents. There are 4.7 per cent vacant stores in Accrington.
Hyndburn Council leader Peter Britcliffe said: "There is a lot going on in Hyndburn and lots of reasons for people to invest here, like the £1m spent on Broadway and the money spent on the Market Hall, and we are here to take advantage of the upturn.
"Probably one of the reasons we have managed to achieve this is because we managed to get Oswaldtwistle Mills moved into the Woolworth’s store."
He added: "We do tend to be a bit downbeat in the north west and if we are the best in the region, let’s be proud. Accrington has a lot to offer."
But The Broadway shopping area has seen a number of stores close as a result of the recession.
These include Woolworths, Diamonds and Pearls, Hampsons, Mark One, Card Warehouse, the Officers Club and Stationery Box.
Phil Bond, of Hyndburn Chamber of Trade, said: "I think the economy is going to bump along the bottom and trading conditions could continue to be tough this year."
He added: "This report proves the falsehood that there are lots of empty units in Accrington. Everybody would like 100 per cent occupancy, but we are stronger than our neighbours."
The percentage vacancy rates for nearby towns and cities are as follows:¿Preston 18.3; Liverpool 16.8; Manchester 16.8; Burnley 16.6 and Blackburn 5.6.