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Feedback From

Feedback From. “ FUTURE OF THE HIGH STREET SUMMIT”. Background. Two day conference in Nottingham Richard Utting and myself attended – one day each. Around 100 attendees on each day Can copy slide to you if interested in detail – just let me know

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  1. Feedback From “FUTUREOF THE HIGH STREET SUMMIT”

  2. Background • Two day conference in Nottingham • Richard Utting and myself attended – one day each. • Around 100 attendees on each day • Can copy slide to you if interested in detail – just let me know • This is highly abbreviated will take around 20- 25 minutes

  3. Context • Vacancy rates are in decline • But vacancy rates have more than doubled since 2008 and yet consumer spending has increased by 5% • The recession in 2008 was a catalyst that changed the High Street forever • The death of the High Streethasbeenexaggerated –but difficult to letunitsacross the country maynowremainvacantforever.

  4. Context (ii) • For many store based retailers changes will mean - Smarter consumers with more information and choice - Lower sales and profits per square foot - Surplus driven into price competition - Margins driven down. - Plus increased costs

  5. Income and Demographic changes • End of clone town Britain • Increasing focus on wealth not population catchment areas as part of store selection. • In 25 years time 9m more people - 3.6m over 60+ - 2.7m 18 -59 - 2.7m 0-17 * Strong relationship between footfall and sales

  6. Government Policy • Largest policy change Business Rate Retention • Local Authorities will have their central Government block grant eroded to nothing and be responsible for generating their own revenue from Council Tax, New Homes Bonus, Community Infrastructure Levy and plus Business Rates • Applications for new retail developments will become attractive to Local Authorities in terms of their revenue generation capacity • An example –A modest 35,000ft2 Tesco Extra in St. Helens generates £283,000 per annum in business rates –the largest Tesco Extra (Walden) is 185,000ft2 • We expect all Local Authorities to be more proactive in seeking development –but perhaps disproportionately inclined to attract further

  7. OTHER THOUGHTS • Potential for chain stores to allow use of their premises Sainsbury’s/Argos, Arcadia and Tesco • On Line accounted for 15% all retail sales 2015 • Total sales increase 0.5% on line 12.2% • Understand on-line single item higher value purchases • Store delivery (interesting opportunities for the High Street), delivery facilities, home delivery

  8. Tracking Key Performance Street ----- Store ----- No Sales -------Sales £ Footfall Footfall l l l l l l Capture Conversion Sales Rate Rate % per sqft

  9. Research Manchester UniversityHow to win/lose Footfall • Groups factors by How much control over factors and how much each factor influences vitality and viability • Ended up with four segments - not worth it - forget it - live with it - get on with it

  10. Get on with it factors • Appearance • Experience • Activity Hours • Vision and Strategy • Management • Retailers and diversity of offering

  11. Research and Measurement • Majority of speakers emphasised need to measure activity, map activity, evaluate customer experience --- to inform future developments and strategy. • Key for a successful BID

  12. BID’s • Variety of models. • Evaluating the Economic Impact of BIDs on: • Employment – retail/leisure • Wages – tax paid/income tax/BR • Sales – retail/leisure • Tourism –spend/day visits/night visits • Investment

  13. Clear that a BID must have: • A Vision • The right governance and the • Right Leadership • It is clear that people vote for people

  14. Reasons why BIDs are Working • Ownership • Funding • Entrepreneurial • Sustainable • Drivers Of Change It is not just about doing things but about demonstrating that they are having a demonstrable effect on the whole BID area

  15. The Future of Markets • Must focus on a core offer of street food and drink • Create more space for social interaction and engagement • Animate markets with music, dance and street performance • Identify and attract a new next generation of market traders – The Teenage Market

  16. The Internet • 15% of sales in the UK are made via the internet. • However it was agreed that it will not kill the High Street but the High Street will need to embrace the internet to material advantage – The Digital High Street • It will be about weaving digital into our local plan • Training and critically, support

  17. Conclusions Lots of shifting aspects –but finish with two truisms • Easily accessible, attractive town centres with modern format retail units in affluent areas have a bright future • Poorly performing retail centres are generally a symptom of a wider economic problem rather than being the problem in itself

  18. Conclusion (ii) • Stores of the future more convenient, personable and experiential • BID’s are powers for good but need - strong team - clear vision - measurement of achievements

  19. Local Event • 11th May • Carlisle Business Interaction centre • Paternoster Row CA3 8TT • 5.30 for 6 pm start.

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