According to evidence from the Local Data Company, the proportion of shops lying empty in Britain hit a record high of 14.6% in February, suggesting a difficult start to 2012 for retailers.
Vacancy rates had begun to stabilise at the end of 2011, but started to rise once again in January and February, possibly reflecting consumer worries about future employment prospects – a recent survey by Nationwide showed an increasing number of respondents describing their economic situation as bad. In this situation, consumers will be trying to save as much money as possible.
Our high streets need vision, trade and investment
Back in December, retail expert Mary Portas produced a report for the government looking into ways to revitalise high streets. While she warned that things will never go back the ’traditional image’ of butcher, baker and fishmonger she encouraged a bigger role for independent entrepreneurs. Small businesses create a sense of individuality and community in towns and we know that customers want to use them. However rising costs and competition with cheap-to-build out-of-town retail parks and the internet are making it harder for retailers in town. Therefore continued investment from indies into their businesses is vital. Sharing ideas with other shops is a great way to find out what works and where to place this investment.
Evans Cycles, one of the UK’s biggest bike retailers, has also reiterated the importance of price and of demonstrating value for money. Although a bike is obviously a bigger purchase than some groceries, the point remains extremely valid for convenience stores – consumers are far more willing to part with their money if they see the purchase as good value!
The government’s response to the Portas review and their strategy to support small businesses is expected this spring.
Chander Hingorani
27/03/2012
Sad as it is the closure of High Street Shops, it is becoming a reality with the increasing popularity of Online shopping and changing patterns of shopping. But there is hope- it is not all doom and gloom. Firstly we are witnessing the return of big names like Tesco Metro, Sainsbury Local, Little waitrose etc which may not be good news for the Indies. But we are also witnessing the Symbol groups who are able to compete with the big boys. So where are the Indies? As Mary Portas has suggested, the Indies require investment. And that is true.
Indies have to up the game, modernise, improve the layout, fittings, lighting, range, equipment IT ad the rest. People who have invested have reaped rich rewards and continue to trade successfully. Customers are fussy and like well fitted shops. Even the big boys refurbish every few years.
So the message is simple- Invest in your business, provide good value, a smiling service and chances are you will do well.
And by all means share ideas, steal ideas and make them work.
Chander Hingorani
30/03/2012
Today the Government has accepted virtually all the recommendations from Mary Portas to rejuvenate the High Street- High street which is the blood line for small retailers. The question is will the Government actually do something or it is just words. Time and time again these recommendations have been accepted but nothing has been done. It is for organisations like NFRN to maintain the pressure and inject some oxygen in the system.
There is a great future for Convenience Stores and interestingly they came in the top five category of shops and CTN in the bottom five. Is there a mesage there? There is business there and it is being captured by multiples like Tesco and Sainsbury who are injecting millions in small shops.
As I said in my previous message, Convenience Shops or Indies have e to up their game. invest in their shops, smarten up the act and regain the initiative.
And ensure that the Government translates their words in action.
Steven Denham
30/03/2012
As the multiples have joined the convenience sector over the past decade or so successful independent operators have morphed themselves to something else by focusing on their communities needs. In fact although they have remained C. Stores, the C now definitely stands for Community!