Bill Boler Director, Investment & Physical Regeneration Business in the Community

1. Scottish Centre for Regeneration Town Centres and Local High Streets Learning Network Launch Event 12th February 2009 Bill Boler Director, Investment & Physical Regeneration Business in the Community

2. Business in the Community • Business in the Community • UK charity founded 1982 • Business-led • 800 member companies - 90% FTSE 100 • £24 million turnover • Impact in the environment • Impact in the marketplace • Impact in the workplace • Impact in the community Maximising the positive impact of business on society

3. Find out more at www.sbcscot.com Scottish Business in the Community Supporting Brokering Challenging

4. Can Retail Investment make a difference?

5. Case Study • A Bank In Harlem?

6. Harlem: Perception vs. Reality

7. PERCEPTION (?) • Harlem's Economic Paradox - • “The killing of seven employees at a Harlem clothing store on Friday highlighted many social and political problems: complicated racial tensions, the easy availability of guns, the inflammatory oratory of community leaders.” • December 13, 1995

8. Harlem issue • Money flowing out of community • Need to keepspend inside • “Under-served Market” “Bring people back”

9. Provide Competitive Offering Attract Additional Investment Increase Consumer Traffic Increase Disposable Income Increase Consumer Demand Increase Local business sales Increase Security Increase Local Jobs Increase Local Spending Community Benefits: The “Halo” Effect

10. Case Study Perceptions • Low Income • High Crime Rate • “Not Our Customer”

11. Case Study:Address Perceptions • lower than midtown • 40% shop outsideHarlem • 20% HH > $50,000 • Crime rate • Buying power • Middle class presence

12. New market information • Cash Economy • ‘Street’ Retailers • ‘Cheques Cashed’ shops • % 1st generation immigrants • Income/Spend ratios 20% additional Household Income

13. Case Study • Cash Economy • Leakage • Population • child care, home maintenance, • auto repair, etc. ($1B of $6.2B) • $2.6B in local purchasing power, $1B spent outside • 413,000 vs. 338,000 (census figure)

14. BEFORE AFTER “What happened?” • 2nd in sales in the 144-store chain • Sales psf > than the overall Pathmark and industry averages

15. BEFORE AFTER “What happened?” Harlem USA –a 275,000-square-foot, retail and entertainment complex

16. “What happened?”

17. Harlem Strategy “The City poured money into the housing refurbishment, which has drawn people there. That in turn helped big business and local stores take root.”

18. Are there any lessons? • “The US isn’t the UK/Europe” =

19. Investment in Underserved Markets • To promote private investment in deprived areas” • Working Group – “must be commercially viable” • 88 ‘Deprived Communities’ in the UK • 4 pilot investments.

20. Under-served Markets Model Employment Multiplier effect Local Business Support Retail Investment Increase footfall Attract additional investment

21. Creative and cultural focus clusters music, media, ICT mirrors London’s growth sectors 24 hour activity equally significant day and night economy Large cash-based economy over 50% of transactions in cash higher than national average informal economy is considerable Andrew Carter, The Smart Co. Unrecorded activity consumer spending Non-VAT registered businesses and community organisations and groups unable to capture value to economy of sole-traders and CBOs Strong ‘multiplier effect’ nature of economy (local living employees - small shops) suggests money is circulating several times in the local area Large lost ‘float’ people are going out of the area to spend money on products - high-end goods and clothing retail Bespoke ResearchBrixton

22. Learnings: Private Sector • Preference to be part of larger transformation project Ability to implement required business/format model (i.e. site availability, accessibility, parking) • Competitive Offer: “If we have a choice between an untried market or area and a good site in say Oxfordshire, we would bias the latter” • Government policy: enabler or barrier Source: Retailer and Developer interviews

23. Regulation “It’s the planning/delivery Mate” “It’s the Economy, Stupid” • Time is £ • Investment is measured against other investment opportunities • Regulation vs. incentive

24. Planning & Deprived Areas

25. Planning & Deprived Areas Speke neighbourhood country's most deprived Jamie Carpenter, Regen.net, 13 December 2007 A south Liverpool suburb contains the most disadvantaged neighbourhood in England, according to official figures published last week. The revised Indices of Deprivation (IoD), which rank neighbourhoods in England in order of disadvantage, found an area of Liverpool's Speke ward to be the country's most deprived.The indices rank 32,482 "super-output areas" according to factors such as employment, crime and low income.Super output areas (SOAs) are small geographical areas, which exist below ward level, typically with populations of around 1,000.

26. Planning & Deprived Areas • Policy-basis: Joining Up Planning, Economic Development & Neighbourhood Renewal • “Encourage investment to regenerate deprived areas, creating employment and an improved physical environment”

27. Planning & Deprived Areas PPS 6 • 2.33, 2.53: plan for investment in deprived areas (p14, 18) • 2.44: give weight to those locations that best serve the needs of deprived areas (p 16) Planning - 16 June 2006 Lidl won an appeal for a food store with offices above … …improve provision for residents of a deprived housing area and bring employment benefits. Blackbird Leys estate (Oxford)

28. USM Lessons Retail Jobs Small/Local Business Retail as a Catalyst

29. Retail Jobs • Entry Point • However, 44%, or 4-5 out of 10 people, used to work in retail • “What we found in many cases was the alternative to a retail job was unemployment. Retail is an entry point into the job market.” In UK, 10% of all employment, or 1 out of 10 people, currently work in retail

30. Retail Jobs

31. USM Lessons Retail Jobs Retail as a Catalyst Small/Local Business

32. Case Study: Harlem USLocal Business • Settepani - Café • Xukuma - Clothing • Turning Heads - Hair Salon • Native - Bistro • Harlemade - Clothing

33. Case Study: Harlem USLocal Business • VS “Customers also can't find the very specialized selection of African, Caribbean, Blues and Hip Hop music that The Record Shack offers.”

34. Case Study: Harlem USLocal Business “When your lease is finished, they want to lease to Old Navy or a big company.” “Nearly 80% of small businesses in Harlem rent on a month-to-month basis, which makes them vulnerable to rising property values.”

35. Connect Investment to Enterprise Strategy • Influence Credit Card Supplier for SME • gives a free debit PIN pad • eliminated a $500 administrative fee • reduced a separate monthly fee Recruitment & training for long term unemployed Provide pro bono assistance - - marketing, inventory mgmt, etc Support for local retailers Assistance in lease negotiations, parking and other issues that affect small retailers Pilot a voucher scheme to ensure local independent traders fully benefit from footfall – ie shoppers who also spend in local shops.

36. Local contracts Connect Investment to Enterprise Strategy • Cleaning • Landscaping • Security support • Waste disposal • Building maintenance tasks • Interior Designers • Visual Merchandisers

37. Greater Easterhouse Development Corp Connect Investment to Enterprise Strategy Local contracts • Landscaping • Waste disposal • Maintenance

38. Connect Investment to Enterprise Strategy

39. USM Lessons Retail Jobs Small/Local Business Retail as a Catalyst

40. Retail-led regenerationWhy it matters to our communities?

41. Why retail-led developments matter Overall Findings

42. The Case Studies 3. The Centre Feltham

43. Background – The Centre, Feltham Location: The Centre, Feltham Shopping is located in the heart of the London Borough of Hounslow in South West London, within the M25 and close to Heathrow Airport. Issues: Before the development the area was home to a concrete, non-user friendly shopping town centre with a series of ‘pound shops’ and the area was not secure at night. The image of Feltham was perceived relatively negatively and associated with Feltham Prison. Housing provision and the retail offer were both poor and the local housing market lagged behind the national market in terms of values. Local community services were disconnected with residents and the retail offer. Overriding driver for change: Image of the area, jobs created, £200m redevelopment to recreate the town centre.

44. The Intervention – The Centre, Feltham • Planning and Implementation • Stakeholders: • Hounslow Borough Council • Developer: • Developed by Thornfield Properties plc and owned by Morley Fund • Management The centre opened in 2006. • Development Details • One million sq ft and boasting more than 50 retail units – including new brands never before seen in the town. • Mixed-use development - retail, residential (in the shape of wood-clad apartments above Asda and elsewhere) and leisure components. • 800 homes developed by Barratt Homes • Anchor: Asda, Argos • Major tenants: Matalan, Next, New Look, Peacocks, Sports Direct.com • 2 car parks with over 868 spaces offering convenient access to the shops and community facilities. • Community Health Centre • Community Library • Travelodge - 115 rooms

45. The Centre, Feltham – TransformationEconomic, Social and Environmental

46. Before and After – The Centre, Feltham • 2004 - 2007 (Progress made) • According to IMD indicators, between 2004 and 2007 Feltham’s ranking in terms of the most deprived wards in the country has improved in terms of: • Education • Barriers to housing • Living Environment

47. Before and After - Byron Place and Dalton Park • 1997 – 2007 (Progress made) • % economically inactive reduced, higher levels of activity amongst those aged 16-19, 25-34, 50+, although still significantly below regional and national average • % of people of working age who are claiming JSA reduced from 3.5% (1999) to 2.2% • Retarded the decline in the resident population by 2004 • Grown the proportion of the population aged 10-19, 20-29, 40-49, 50-59, 70-79, 80+ • Trends in IMD domains (2004-2007, 2000 not comparable) at lower layer Super Output Area level (by development)

48. Case Study • Transactions per month • 5000 Breakeven • 6000 Profitable • Projected: 5000 after • 1st Yr • Actual: 30,000 in 3rd month

49. Lessons • Link between Housing, Enterprise, Transport & Retail - Where & How can retail be a “trigger” to kick-start regeneration? • Retail Jobs – unemployed & advancement • ‘Right Mix’ - Enterprise support linked to brand investment • Plan for the future – Deprived areas aren’t limited to town centres • Research; Measure impact

50. Think about how Investment can bring benefit • How it is benefiting deprived areas • How it will increase local employment and training • How it will support local business development • How it will engage & support community issues • How it will increase socio-economic activity