March 2012 Archives

It's telling that the responses from the British Retail Consortium and BCSC to yesterday's new planning guidelines were altogether more positive than those given less than a week ago following the budget. 

The main section of the significantly-condensed planning document which would concern retailers and developers is that which deals with the future vitality of town centres, and how planning guidelines can assist the market in making vibrant, competitive, successful centres a reality; and not just a celebrity's dream.

It was pleasing to see the document make reference to the individuality of town centres, and recognise that local authorities need to govern what constitutes sustainable development in their area. The authorities can define the extent of their town centres, and develop their area plans around these parameters. This in turn will mean a greater power to refuse permission to schemes which are seen as being detrimental to the progress of urban recovery, and thereafter, development.

In strengthening the Town Centre First mechanism, the framework has certainly put faith in the long-term ability of struggling town centres to recover - but in terms of shopping and retail, the question remains whether the problems are too endemic for a planning reform to fix. Several planning hurdles may have been removed for town centre retail schemes from a development point of view - but can consumer behaviour change enough to make them 'viable' and 'sustainable'? And how many retailers will survive until the benefits of the guidelines are felt?

The public often give their backing to retail-led regeneration schemes in town centres, only to then either vote with their wallet and shop on-line, or to drive to the out-of-town retail park, where the stores are larger and the parking free. There also needs to be a little more help given to retailers in the battle to pay rent (an opportunity missed in the budget); as there is little point in making the delivery of a gleaming new project easier if there is nobody there to fill it.

The next couple of years will be of interest - as we observe just how quickly the reforms catch on, and how many schemes are turned down due to failing the requisite impact assessments. Only then might we see retailers, developers and, crucially, shoppers turn their eye towards the town centre rather than away from it. The NPPF may be seen as the first step towards town centre recovery - but make no mistake - there's a marathon still to run.

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Budget 2012: The Impact on Retail

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The national headlines belonged to the scrapping of the 50p tax rate, and the government's curious decision to alienate everyone over 65 - but there were some elements of yesterday's budget which will have some interesting implications for the retail market over the next couple of years.

Perhaps the aspect mentioned most often by retail experts is over something that the budget didn't do, rather than that which it did. With no respite coming from the Chancellor over the impending 5.6% increase in business rates next month, the cost base for retailers will increase over the next year - and will be in no way offset by inflation, or the cut in corporation tax.

Documents released yesterday indicate that government revenue will be around £592 billion will be raised in the 2012/13 financial year - up £3 billion on 2011/12; and the increase in business rates accounts for a third of this figure.

The decision to relax Sunday trading laws for eight weeks over the summer seems almost like a piece of opportunism, rather than a carefully thought-out piece of legislation, and has gained mixed reviews since its announcement. CBRE's Jonathan de Mello called it a 'timely boost', and that any other decision would represent a 'missed opportunity'; whilst the Association of Convenience Stores have labelled it 'devastating', as it will cost local shops around £480 million in lost trade.

Below-inflation minimum wage increases for adults and freezing the youth rates will certainly be music to the ears of under-pressure retailers; and the increase in personal tax allowances should eventually help consumer spend. The question is whether this increase is coming soon enough - as by April 2013, consumers will have had another year of purse-string-tightening, and the requisite shift in consumer behaviour will be a lot more difficult to engender.

This budget rather gives an impression of the government leaving the retail market in the doldrums for the time being, and rather hoping that the one-time cash injection provided by the Olympic summer can stave off total catastrophe until the population in general has more disposable income in 2013 and 2014. There are, of course, longer term issues over the market which need to be addressed - but the chance for a shot in the arm has gone, and retailers are now left to make the best of what they can out of 2012.


For more from EGi on the Budget - see the Focus Blog for a summary on the impact on regions & click here for a summary of all the major budget stories.

The Best Puns In Retail....

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One of my favourite podcasts opened this week with a canon of the presenters' favourite shop names, and as fears grow over the homogenisation of the U.K. retail scene, I feel a timely celebration of the most inventive store names from around the globe is needed...

As outlined in this Guardian piece from January - fish and chip shops have perhaps the richest area of comedy from which to procure their name. 'A Salt and Battery' the winner in this category - and I'm not just saying that for the halibut.

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The delightfully named 'Hair Off The Dog' canine grooming salon recently took a unit on a high street in Newbury; and if you're looking for a 'superb' name for a cafe - look no further than this effort from Greenfield, Indiana.

My favourites from the U.K. are 'Amps & Decs', a music store based in north England; and 'Jamaican Me Hungry' - a Caribbean restaurant in Liverpool. Overall, though, the crown has to go to Toronto-based sports store, 'The Merchant of Tennis'.

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Hats off to you all!

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This page is an archive of entries from March 2012 listed from newest to oldest.

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