A recent report by Retail Week, the leading website and magazine for the UK retail industry, investigates the effects of the coronavirus and lockdowns on the high street. The report goes on to suggest ways in which high street retailers can look forward to the future with confidence.
Research by professional services group PwC claims that the number of shops fell by 6,000 in the first half of 2020, compared with a decline of 3,509 in the same period in 2019. This escalation of store closures is attributed largely to the effects of the pandemic and the requirement to stay at home. Longer-term challenges it acknowledges include rising business rates, lack of investment, and the trend among consumers towards digital and out-of-town shopping.
The Retail Week report suggests, however, that far from contributing to the death of the high street, the coronavirus pandemic could actually present the retail industry with the biggest opportunity it has had for many years. While most city centres were effectively off-limits due to transport shutdowns and work-from-home requirements, “localism” has greatly expanded. People working from home had to use their local high street shops to meet their needs, often for the very first time, and this trend will continue as many businesses to commit to home-working for their staff.
The report claims that 59% of shoppers actively want to support their high street, whether to maintain local jobs and businesses or simply to bolster their community. Although many cite expensive and inadequate parking, limited choice and unappealing shops as factors putting them off, Retail Week argues that greater awareness of what local shops can offer and the desire among residents to support local business, will offer opportunities for high street shops to thrive as the economy picks up again.
With the help of central and local government, plus the support of the community, Retail Week claims that the key to success on the high street will be to understand the changed needs of the consumer as well as the longer-term impact of the pandemic on shopping habits.
The government-backed High Streets Task Force (HSTF) is a consortium of organisations whose objective is to provide town centre managers and local authorities with expert advice and information. Executive Director Simon Quin commented: “In the past high streets provided civic uses – healthcare, education and all that kind of thing – and we think that has got to be the future. We are not going to be using a lot of our centres for multiple retailing.”
Quin expects that big cities will specialise in major brand shops, while towns develop their own unique identity and focus on independent outlets. The trend in recent years for high streets everywhere to become clones of each other, all offering the same narrow selection of national retailers, has become out-dated. The development of internet shopping enables shoppers to access national brands from anywhere in the country, and towns now need to develop their own individual character and become the focal point for their local community.
The HSTF says that high streets should build on their appeal to under-35s, as they are more likely to spend on health pursuits, fashion and entertainment. Retail outlets should introduce free wi-fi and digital touchpoints to enable self-service shopping. Food and drink options are also likely to play an increasing role in future, with the key being to create a unique USP to attract visitors.
The HTSF noted that housing options are likely to become important in any attempt to make the high street a fully integrated part of the community. Simon Quin added: “Towns and their leaders need to think about transforming, and understand that the future role of the high street is not retail dominated, but with many other things that occupy it.”
The research showed that in addition to more choice in grocery and fashion outlets consumers will demand cheaper and improved parking, as well as more coffee shops, restaurants and bars and an overall “nicer environment” to visit. Creating a sense of community and a hub where they can meet friends and socialise was important to many of those questioned. Independent shops will be key to this, with the success of monthly farmers’ markets showing that emphasising quality and locally-made produce can be a useful way to bring visitors back to our towns.
Retail Week’s report ends on a note of optimism for the industry: “After a year of uncertainty that was unlike anything the UK’s high streets have ever experienced, we see much success for retailers that invest in their future to create meaningful shopping journeys in this ever-changing environment.”
Bretherton Law has been serving people and businesses in Hertfordshire for over 50 years. If you are buying or selling business premises, looking to lease a new property, or subject to a rent review our experienced Commercial Property team will give you honest, professional advice. Contact Osman Dervish on 01727 869293.
