The future of the high street
In May this year, I was challenged by the Prime Minister and Deputy Prime Minister to undertake an independent review on the Future of the High Street – to help ‘bring back the bustle’ to our town centres.
And with town centre vacany rates doubling over the last two years, the need to take action to save our high streets has never been starker.
I am calling on business, local authorities and shoppers to contribute their ideas on how we can halt this decline in its tracks and create town centres that we can all be proud of.
If you’ve got something to say about the state of our high streets – be it an observation, insight, initiative or idea – please add your own contribution to the debate below.
Read my Telegraph article – ‘My job is to save our high streets‘
FUTURE OF THE HIGH STREET REPORT – UPDATE:
Thank you for the thousands of comments and opinions left here over the past few months. It is clear that the future of our high streets is a matter close to the hearts of many people. Mary is now in the final stages of writing her report and therefore we are no longer accepting comments/submissions. Please note that all comments made previously have been taken into consideration. Thanks again for your interest, and we look forward to sharing the report with you in the very near future.
[...] high streets apparently. Homogenous….? Maybe not, mature and complex certainly. The Queen’s campaign (not the well-heeled octogenarian, the real one, has continued to attract lots of [...]
[...] Mary Portas following her invitation by the Prime Minister to undertake an independent review on the Future of the High Street – to help ‘bring back the bustle’ to our town centres. ‘With town centre vacany rates [...]
[...] potatoes and family size bags of carrots from the local Co-Op was not part of my Cotswold dream. Mary Portas is right, our high streets are having a [...]
[...] Read about the High Street Review on the Mary Portas website [...]
Agree with many of the comments left already – couple of additional comments – I have an independant design led gift boutique and know (because they tell me) that many of my customers do their Christmas shopping at Country Living Christmas Fair where many of my suppliers can showcase thei whole range and offer deals – independants cannot compete with this. Country Living is on in Glasgow as we speak and my shop is empty! There is really no such thing as trade when suppliers bypass independants they supply and sell direct to the public and direct the public to their own websites not the independants who have shown loyalty to them . Furthmore if you listen to the presenters on QVC shopping channel – the language is all about we are cheaper than the high steeet, you don’t have to leave your home, I spent an hour trying to get parked and the cost of parking, having to walk with heavy bags back to the car park etc etc. One person mentioned online shops being charged “virtual high street rents and rates to level the playing field between those that trade soley online and those that have a bricks and mortar shop and I rhink this merits further thought but is not realistically ever going to happen. – with the internet, Pandora’s Box is well and trully open and sadly the charm of chocolate box shops which provide town centres with diversity, interest, vibrancy, character and old fashioned customer care need some serious support and legislation with teeth as far as supermarkets are concerneds as well as real incentives like free parking to make it easy for customers if. The next documentary following on from “the death of the high street” is not to be “Memories of the High Street – a trip down Memory Lane”
One of the main answers I believe is FREE CITY CENTRE PARKING for shoppers.
The malls and “edge of town” retail sites have one main advantage – FREE PARKING.
THE UK HIGH STREET / SHOPPING MALLS ALL HAVE THE SAME RUN OF THE MILL SHOPS, SELLING THE SAME VASTLY OVER-PRICED PRODUCTS AND SALES WEEK IN WEEK OUT BY ONE OR ANOTHER OF THE FAT CAT RETAILERS. LETS HAVE REALISTIC, AFFORDABLE PRICES IN THE FIRST INSTANCE AND ATTRACT THE SHOPPERS BACK.
AS AN EMPLOYEE IN A SALES CAPACITY OF AN INTERNATIONAL FREIGHT FORWARDER, I SEE THE COST PRICES OF MANY ITEMS AND THE MARK UP TO THE END USER ( THE SHOPPER ) ITS A TOTAL RIP OFF.
SUPERMARKETS WITH BUY ONE GET ONE FREE, WELL NOTHING IS FREE, ITS THE PRODUCT SUPPLIER
BEING FORCED BY THE SUPERMARKET TO GIVE THEM SOMETHING FOR NOTHING, AGAIN SHAME ON THE BIG NAME SUPERMARKETS FOR FORCING THEIR SUPPLIERS TO SUBSIDISE THEM.
Brilliant Colin, have you just hit the nail on the head? High street retailers paying £1 and selling for £8. Of course there is the problem! What that fails to appreciate is that the cost price of goods in some sectors is such a small portion of the cost involved…rent is not free, staff are not free, insurances and rates are not free. It is a typical statement from someone who sees a retailer’s COGS, their sell price and then jump to assumptions. We work of much lower margins (55% markup, 35% profit is absolute best) and yet I still know some customers feel insulted that they pay £10 for something that cost us £6ex vat – they essentially feel it is their entitlement to pay our cost price and we should thank them for choosing us. The irony is if they didn’t know our cost price they feel the £10 price is very reasonable value.
Let’s look at your proposed solution – how are the entire retail community supposed to be forced to reduce prices to provide high street salvation? Furthermore, looking into the ‘problem’ you have identified, surely if the retailer’s margins are far too high the the vacancy rates in town centres would not be as they are anyway considering it the goldmine you imply.
I am not intending to sound officious or objectionable but to make a statement that retailers are their own worst enemy because of the prices they charge is a one-dimensional view that disregards the core problem. Put simply, the high street is not a profitable place to do business – out of town competitors have the benefit of volume and accessibilty whereas online has the USP of price and convenience. Trying to offer a point of difference on a traditional high street is very tricky and unattractive to many retailers. Only when this is addresses (by making the high street a competitive business environment) will businesses organically start to repopulate. Any other solution is either micro-managing the problem or providing ineffective gimmicks.
One increasing source of frustration we are hearing from small independent retailers is the charge levied for non-compliance of the ‘Payment Card Industry Data Security Standard’ (PCI DSS) by their merchant service provider. This can be as much as 2% on top of each credit/debit card transaction, yet the majority of businesses can become fully-complaint in 30 minutes by simply completing an application form – a fact that providers seem reluctant to share with their customers.
retailers with good covenant will always be favoured by landlord’s because a secure tenant boosts capital value. therefore independent retailers are immediately at a disadvatage because they can’t acquire properties in prime locations. that competitive advantage means that high streets like portobello road then become ‘clone streets’ with chain retailers selling all the same products. landlords need to realise that once the shopping destination becomes too main stream the retail destination will lose their appeal and charm. tenant selection by landlords is crucial to the high streets because in some high streets one landlord can control both sides of the street with their goal to boost rents wherever possible. local authorities need to claim back their high streets and invest in the future of their towns. the only way councils can have control is by investing in high street property. where there is a particular problem with vacancies councils should act by investing and re-invigorating with considered asset management to reclaim the high street and give it back to the market traders and independents.
high streets are boring,selling the same old stuff nobody wants.You cant even buy CD In my high street.poor customer service from people who dont really want to be working.I cant remember the last time somebody said please or thank you to me in a shop.when I moved to the area I live now the sops in town were fantastic.they were varied and sold good stuff.Its all cheap rubbish now.
You might want to ask the National Federation of Subpostmasters about their exciting new plans for the High Street. Oh! you already have and they have provided you with a load of bumph. Alongside their bosom buddies, Post Office Limited, they plan to close 2000 high street post offices over the next three years. But I don’t suppose they told you that did they? How supportive of them particularly when they are meant to represent the very people they are getting rid of. But don’t criticise them for goodness sake otherwise they get rid of you – chuck you out for trying to protect your own livelihood.
Hey, just reading through some old posts and I really like this one. Sorry I’m so behind with the times! =0)
The biggest problem with charity shops comes at rent review time. Because they pay no rates and have few stock or staffing costs (donations and volunteers), their only overhead is rent. They will therefore happily pay the inflated rent that landlords ask, rather than haggle it down. Now when the other shops on the street have their five yearly rent review, the excessive rent agreed by the charity acts as the new benchmark, thus pushing up rents for those other shops, often to uneconomic levels. That is the most important reason why charity shops are killing the high street.
hi Mary
the main reason for the decline in town centres is undoubtedly due to to the enforced removal of cars from the towns. I live in a city with what was one of the best markets in europe (Leicester).- the town planners have killed it! To be fair markets have other problems,but out of town shopping complexes with their onsite parking must be seen as the major killer. people ARE lazy and they won’t walk or carry goods any further than they have to & they do see the parking at these centres as free. if you want to see it in its most obvious form go to Stratford upon Avon. this ancient English town one of englands main tourist centers is all but shut. Leicester has a shuttle bus service from park and ride centres around the city but these stop far to far from the ‘small’ shops & market to make it practical to carry goods. parking and the pre-eminence of the debit card I’m sure are the nails in the coffin of markets. I’m certain that the only way forwards for markets and town centres IS niche marketing. I come from a long line of market traders and would love to talk to you and help if I could to regenerate interest and encourage enteprise in our town centres .Alan
I notice newcomers to retailing locally are the most likely to fail. Case in point one local shop owner refuses to do marketing of any kind and concerned about no customers. Idea:create a little self health check list for all local shops to self serve on advice and promote to all new local retailers/ and old if need be. With retail advice if need be.
Today, a friend and I received outstanding service in Miss Selfridge, Birkenhead (on the Wirral). The service (friendly, genuine, thoughtful) was in stark contrast to what I am used to, and reminded me of why the high street used to be so great. I am usually an internet-only shopper due to time and health constraints, but I will be giving my full support to the high street from now on.
Mary – I am always keen to help and encourage people to support their local shops. I have for some little time been playing around with an idea which I think has merit but I just haven’t the time to promote it. If you think it is any good maybe you would be in a better position to promote it or get it on the government’s e-mail site for public support? So here goes with the rationale …
most town centre car parks charge parking fees and these are subject to VAT …
out of town shopping centres, and large office complexes, provide free parking facilities thus providing a benefit in kind which is not subject to VAT …
intoduce a ‘parking tax’ on all facilities providing parking facilities, hospitals excluded, for more than 50 private cars …
assess the parking charge as follows …
assume 8 hours parking a day at a notional charge of 50p per hour = £4 per day x 6 days x 52 weeks = £1,248 pa incl VAT of £208 per parking space …
parking facilities for 50 cars would, therefore, have an annual VAT / parking charge of £10,400 … 500 spaces = £104,000 …1000 spaces = £1,040,000.
each individual provider of spaces would be responsible for their own assessment of the number of spaces provided and the ‘parking tax’ would be paid to HMRC on a monthly direct debit … certificates would be issued and would have to be displayed on the premises to ensure compliance …
failure to register or incorrect disclosures would be subject to an automatic penalty of 100% of the correct ‘parking tax’ charge avoided …
BENEFITS
the ‘parking tax’ would raise substantial additional revenue with minimal collection costs …
50% of all revenue raised could be returned to local authorities to subsidise local parking faciities to allow towns and villages to compete with out of town shopping complexes …
it would reduce the competitiveness of the large superstores as they would have to fund the ‘parking tax’ themselves …
the notional daily parking charge would be adjustable to reflect the ‘local market rate’ …
it would help to encourage support for the local high street and smaller independent traders and away from the out of town centres …
Mary – I’m sure it is not an original thought but, to me, there is merit in raising revenue through a modest charge and benefitting a much wider audience … obviously the devil would be in the detail but keeping it simple would help implementation.
Paul McIntyre
etc. and baby etc.
86 London Road
Stockton Heath
Cheshire
WA4 6LE
077 1945 9962
hi!,I love your writing very so much! percentage we keep in touch extra about your article on AOL? I require a specialist on this area to unravel my problem. May be that’s you! Looking ahead to see you.
Undeniably consider that that you said. Your favourite justification seemed to be on the web the easiest thing to remember of. I say to you, I definitely get irked even as people consider issues that they plainly don’t recognize about. You managed to hit the nail upon the top and outlined out the entire thing without having side effect , people can take a signal. Will probably be again to get more. Thanks
Hey there! Quick question that’s completely off topic. Do you know how to make your site mobile friendly? My weblog looks weird when browsing from my iphone4. I’m trying to find a theme or plugin that might be able to fix this problem. If you have any suggestions, please share. Many thanks! 2d62a28326aaa37e727d32491a6c2759
Two big challenges for the High Streets.
1 – We create too much retail space – new developments are allowed without any thought to what gets left behind. Occupancy rates are not a reliable guide as they assume that full occupancy of all space is possible.
2 – Too many independent retailers pin all the blame for their failings on “big business”. Wrong, hard work and knowing your customers will always help you survive. It is an insult to the thousands of people working in the multiple retailers head offices and stores that they don’t work hard and don’t try to understand their customers. They aren’t doing anything that any self-respecting indie can’t do.
Two big challenges for the High Streets.
1 – We create too much retail space – new developments are allowed without any thought to what gets left behind. Occupancy rates are not a reliable guide as they assume that full occupancy of all space is possible.
2 – Too many independent retailers pin all the blame for their failings on “big business”. Wrong, hard work and knowing your customers will always help you survive. It is an insult to the thousands of people working in the multiple retailers head offices and stores that they don’t work hard and don’t try to understand their customers. They aren’t doing anything that any self-respecting indie can’t do.