As we see names disappearing from the High Street and more emphasis being placed on internet retailing, what is to become of it?
The recent closure of Burtons and Dorothy Perkins in a prominent town centre location has left yet another void to add to that of HMV, TJ Hughes, JJB Sports and InterSports to name but a few. A dark cloud hangs over Internacionale after it went into administration for the second for the second time within a year and even pawnbrokers aren’t immune after it was revealed that HT Pawnbrokers (left) is set to close when its 5 year lease expires.
Will the majority of shops being left empty along the upper High Street be replaced by offices or turned into flats? Are the only shops left going to be bookmakers, hairdressers, nail bars or those selling food and drink?
The former Burton & Dorothy Perkins shop
The Centre for Retail Research published its forecast of what the retail landscape in the UK will look like in 2018: ‘Retail Futures 2018′. This report documents statistics upholding the rapid growth of online retail at the expense of shops. The UK has the highest online retail share in the world and is currently forecast to grow from 12.7% back in 2012 to 21.8% by 2018. Meanwhile 41% of town centres will lose 27,638 stores (in spite of Mary Portas). The report also points out that consumer spending has increased 12% since 2006 while retail operating costs have risen by 20%.
3 empty town centre shops
Looking at the statistics, you would think that they make gloomy reading, but predictions only show what will happen if contra-action is not taken. The future hasn’t happened yet, some trends are clearly irreversible but progress may intervene to swing the statistics in a new direction (e.g arising from the growth of mobile shopping and advent of virtual supermarkets). The good news is that ‘Retail Futures 2018′ concurs with many views that High Street businesses, town planners and local councillors,(in fact all stakeholders) need to recognise that the change is progress and can be steered the direction of change into one that makes sense for our towns. Already the government has reduced business rates for small shops and handed greater levying control over to local government.
Closed
Our town centres are an important part of the community and local economy, creating employment not just for the shops and staff but for ancilliary businesses (IT specialists, financial services, employment agencies, electrical, plumbing and heating services, shop fitters and cleaners, distributors, office furniture and equipment suppliers…). There is property asset in the buildings that house the shops and small businesses. These assets are affected by the economic conditions and a shop closure instantly devalues the whole property. Many of these properties are tied up in pension funds, or are owned by investment managers or even shopkeepers. Maintaining a thriving town centre or High Street has a greater impact on the economy than just giving the community a central point to be proud of. Town planners need to get it right with a clear vision of their successful high street and a sizeable fund to achieve it.
What about big out of town retail parks with their spacious free parking, people travel out of their way to visit these and also the indoor shopping centres in nearby local towns and cities.
Bookmakers
Scunthorpe town centre has seen the introduction of 2 hours free parking in it’s car parks and from June will see all day free parking on Saturdays – is this too late
As for online shopping, it used to be thought that consumers wouldn’t buy expensive jewellery blind over the internet without seeing it in real life first – that’s no longer the case. With a combination of high quality product images, testimonials and reviews, people regularly spend thousands through websites from names they trust.
Whilst it’s acknowledged some big national retailers like Woolworths have gone bust and are no longer present on our High Streets, the growth of retails parks and online shopping are having a major impact to the way people shop and many retailer no longer see High Street as a viable option.
Are we seeing the long slow death of the High Street and the emergence of the iStreet.
northlincs 