How are British High Streets performing?

The traditional British High Street has been an integral part of community life in Britain from as far back as the Victorian era when the High Street as we know it today was first created. Since these humble beginnings the local High Street has experienced periods of boom and almost bust. The ever changing speed of development in retailing since the 1970’s; influenced by mass production techniques, imports and technology; all have had a significant impact on local independent businesses. Such businesses have struggled to keep pace with the sheer speed of change and diversification.

Given this backdrop and the long term effects of austerity measures from the naughties, our High Streets have been fighting to maintain their status and relevance in our lives. Statistics published from organisations such as the Local Data Company, (LDC), show that in 2015 the net number of independent retail businesses hardly changed with just 117 new names. Across the UK there are 270,121 Independent retail businesses which represent 65% of all the outlets throughout the country; which is still a staggering achievement given the hardships they have had to endure, demonstrating how Britain really is a nation of ‘shopkeepers’.

Compared to the growth of independent retailers in 2010 (3949), 2015’s figures represent a significant slow-down. The figures also mask the real changes, only showing the net movement, without indicating the gross number of new businesses that almost match the failures. Since 2005 over 200 Business Improvement Districts (BID’s) have been established with the sole purpose of ‘improving the circumstances of businesses within a defined local commercial catchment area through a business-led and business funded body’. The contribution made by BID’s is variable, with some making a real difference where others appear to have had little overall impact on the general trading situation.

The High Street has experienced a number of the key challenges in recent years; one such challenge being the decline in the number of anchor retailers that underpin the basic consumer attraction for shopping on the high street. Retailers such as Next, M&S and River Island all now showing a preference for destination retail parks, where rents and taxes are lower and access is easier. This coupled with the speed of growth of online and convenience shopping, including ‘click and collect’, has forced independents to think differently about how they serve the local community.

The British Retail Consortium reported in May that High street footfall rose by 1.2% after a 4.7% drop in April. May’s results were the best high street footfall recorded since July 2013.”With total footfall figures up and High Streets seeing a reversal in fortunes, today’s figures offer some respite from the relentless downward trend we’ve seen building in recent months” said BRC Chief Executive Helen Dickinson. This welcome news has to be put in context. Diane Wehrle, Marketing and Insights Director at Springboard, added “the figures show the month’s footfall increase emanated from a 4.7% rise in the first week of the month stimulated by the May bank holiday weekend. For the rest of the month, footfall dropped by an average of 1.1% in the remaining three weeks”. “This is only the 14th time over the last six years that footfall has risen; and over this period footfall increased in two consecutive months only twice”.

With the uncertainty created by the EU referendum result affecting consumer confidence, we predict even more challenging times ahead for the traditional British High Street.

One thing is for certain; independents are resolute and where entrepreneurial spirit exists, independents will need to adapt and adjust their propositions to meet the needs of their communities.