The Government and the British Retail Consortium (BRC) have issued statements on the health of our nation’s high streets, but also what the future could hold for them.
As part of its Plan for Change initiative, the Government is continuing its scheme to auction empty stores and units, while the BRC reports that sales on the high streets were fairly static in February, with increased levels of trade occurring in out-of-town retail parks.
In addition, eight more local authorities have committed to implement their own High Street Rental Auction (HSRA) powers as the latest wave of early adopters, setting an example for other councils and bringing the total to 11.
The new councils are Barnsley Metropolitan Borough Council, Broxtowe Borough Council, Camden London Borough Council, Hillingdon London Borough Council, Lichfield District Council, North Northamptonshire Council, North Somerset Council and Westminster City Council.
HSRAs, introduced at the end of last year, give local councils the power to auction off leases for commercial properties that have been empty for long periods, helping bring business back to the high street and drive growth across the country.
Speaking about the news, Small Business Minister, Gareth Thomas, said: “We promised to lift the shutters on the country’s high streets and that’s exactly what’s happening across these local authorities. We know small businesses are the drivers of our economy, which is why we’re working hard to boost exports and tackle late payments, and HRSAs are another crucial tool to support SMEs, increase jobs and go for growth.”
The latest data from the BRC, meanwhile, reveals that for the four weeks of February, total UK footfall increased by just 0.2% year-on-year, down 6.6% in January. High street footfall rose slightly, at 0.1% year-on-year, although this too was down from 7.9% in January.
Helen Dickinson (left), BRC chief executive, said of the figures: “Footfall increased for the second consecutive month, with retail parks continuing to outperform other retail destinations. The variety of larger outlets and the option of free parking enticed customers to visit these over their local high street or shopping centre, which saw only marginal improvements. Strong investment in retail parks and fewer empty stores has led to consistent positive shopper traffic over the past year.
“Retailers are always looking for ways to invest in shopping destinations and the communities they serve. Unfortunately, the £7bn worth of costs facing the industry from the budget will hinder retailers’ ability to do this.
”At a time when many high streets are in desperate need of revitalisation, the government must do more to support the retail industry’s ability to invest. Ensuring no shop pays more as a result of business rates reform and delaying the new packaging levy would allow for more investment in stores and jobs, giving footfall a better chance of recovery in 2025.”
Andy Sumpter, retail consultant EMEA for Sensormatic, who conducted the research with the BRC, added: “While the good news is that shopper counts remained steady, many would have been hoping for a more substantial leap building off a strong start to the year.
“Retail parks, consistently one of the top performers in 2024, once again outstripped other retail destinations in February, as the convenience and choice built into their retail offerings again proved popular with customers. Easter falling late this year will, undoubtedly, put added pressure on retailers as we head into March. To plug the gap, they have an opportunity to create compelling reasons to visit and enhance their offerings with greater convenience and choice - the standout strengths of retail park performance.”
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