How do we ensure the survival of the high street?

Kate Nicholls, CEO, UKHospitality:

“The hospitality sector is vital to UK high streets both economically and socially, but these crucial businesses are facing challenges. Business rates are a chief concern, but they are representative of a wider tax system that is out-of-date and unfairly favours digital businesses at the expense of community-based businesses in hospitality.

“We still need to see immediate action taken to help those worst hit by business rates increases, but also a full and long-overdue review of the entire system. Fundamentally, we also need an overhaul of the entire tax system to reflect the practicalities of doing business in the 21^st Century. We need to level the playing field between digital businesses and bricks and mortar to ensure hospitality businesses have a chance to compete fairly.”

Alex Reilley, chairman and co-founder, Loungers:

“There have been some very bad planning decisions in a few cities we have come across where they have built shiny new shopping schemes in locations that have completely distorted how a city is used. Leicester’s Highcross shopping centre is a good example of that, as its off-centre positioning on what had been a largely disused brownfield site has meant that the other half of the city, which had historically been very strong, has been absolutely decimated.

“Government has to prevent the kind of thing that’s happened in Leicester from happening elsewhere. We have stop planners being seduced by a scheme that looks fantastic on paper, without thinking through how it is going to affect the rest of the town or city centre.

“But one of my biggest frustrations is around the housing crisis. When I look up on almost every high street I walk down, there is floor upon floor of empty space that sits above a lot of these retail units. It strikes me as ridiculous that we are building new homes on land that currently isn’t used for housing and not seizing the opportunity to convert these upper floors within high streets and town centres.

“Encouraging more people to live in and around the high street has got to be a positive thing. In my view, the government needs to incentivise people to do that because it would add to the overall vitality and viability of high streets. Being blunt, they might need to put their hand in their pocket to actually do it – whether it is a VAT break or a relaxation in planning or building legislation to encourage developers to use these redundant spaces.

“While there is convenience around the internet, people still want to use their high streets, because you can’t get the same experience sat on your laptop. The likes of Jack Wills, Hollister and Urban Outfitters, make their retail experience really interesting, and they making going into the store part of the culture its customers are subscribing to.

“Thankfully you can’t get a pub or restaurant experience online. I think retail needs to recognise that. A lot of the retailers have signed up to a ‘me-too’ scheme that is opening somewhere because they think they should be there and then not investing as much money as they should do in the fit out of their stores to make them an interesting and enticing environment.

“Another thing I think the government will potentially look at is the use of a CVA to effectively have a proper clean-up of your estate, as it has clearly been used and abused.”

Peter Marks, chief executive, The Deltic Group:

“On the subject of planning, whether we like it or not the high street retail environment is changing – ­with a lot of it going on online and retail parks that are free to park in – and I don’t think we’ll be able to stop it. But the government need to be a little bit more flexible around planning consent to allow leisure and residential to pick up what is going to be left after retail has shrunk back.

“It must make sure there is some kind of understanding on zoning in leisure and residential to make sure that they don’t cross over. Because you need to have some sort of predictability around leisure and if you have a licence it leaves you to the vagaries of local conditions, politicians, and residents being able to curtail your operation to the point that it is no longer viable. I don’t think there is enough understanding from government about the KPIs of our sector and what makes it tick.

“The other point is around licensing – it is hard work and it is often used as a stick to beat operators with. The problem is that it is like a rachet that continually tightens. If you have a licence condition, you never have it removed. I am trying to work with UKHospitality on sunset clauses on licensing conditions. So that if the situation improves – for example you have had a glassing and had to introduce plastic cups – and you don’t have any more issues, then after 12 months it will be removed as a condition. That would be enormously helpful.

“I also think that parking charges are hugely emotive, and that they are something that should be cheap or free. It would help smaller towns in particular that don’t have the draw of big cities like Manchester.”

Simon Potts, managing director, The Alchemist

“Local councils should look to some of the innovative shopping centre schemes that have sprung up in relatively recent times – I don’t mean the hyper out-of-town malls like The Trafford Centre or Meadowhall, but the more cleverly curated city centre schemes such as Trinity in Leeds or Westgate in Oxford.

“The guys that are doing this well are taking time to blend interesting F&B and retail outlets with experiential venues; cinemas and competitive socialising for example. They are creating opportunities for independents with food halls (Trinity Kitchen) and driving footfall through organised but inclusive events, pop ups and concerts – all of which are heavily and widely marketed.

“High streets already have many of these features, but none of it feels particularly coordinated. I accept there are huge associated costs involved and dedicated management required – but the key here is in the curation of the environment, promoting the positive and quirkiness, and coming away from the message that the high street is ailing and we should be guilt-tripped into supporting it as consumers.

“As an aside I think more retailers need to look more closely at the environments they are creating in store – and certainly on training of staff. Hourly-paid front line roles in retail and leisure are drawing from the same pool of people, often part timers in first jobs or stepping stone positions supporting studies, but the level of training given in the two sectors is worlds apart.

“If the consumer is going to get surly, ill-informed service in a shop, then why wouldn’t they plump for the ease and review information available to them on online. Top Shop on Oxford Street is a great example of a brand not resting on laurels, they have the name, the location and the offer sewn up in the store – but they push beyond that. The DJs playing to the shoppers, the plentiful and knowledgeable staff and the management of queues are notable insofar as they aren’t the norm.”

Simon Longbottom, Chief Executive Stonegate Pub Group, said:

“Nearly three quarters (73%) of our sites are in town centres. Consumer behaviour is shifting and consequently the high street is evolving to better meet their needs. Rather than a place just for shopping, consumers see it is as a space for experiences. The high street is where many consumers live, commute into and out of, work and socialise. For example, someone might visit a shop to try on new clothes, but then go to a bar or café to order the items online while relaxing with friends.

”Those operators who are innovative, entrepreneurial and relentlessly focused on giving customers new and relevant experiences can continue to make significant progress – whether they’re the latest experiential leisure business or a drink-led bar and pub operator.”