15
PARKING: PRICING
On the
experience from other schemes gives us an insight into how trade charging regimes, backed up by fair enforcement systems, with
develops and what it takes to establish new customer habits. meaningful concessions in place to encourage loyal and high spending
“Using this method, we believe we will achieve higher occupancy visitors,” says Rose.
and income levels without cutting back on the all-important Castlepoint in Bournemouth has offered free parking since it
management regime,” he says. first opened in 2003. General manager Peter Matthews insists that
Like Rotherham, St David’s 2 has identified the need for charging shoppers to park was never a consideration. And according
discounted rates at times when people are more likely to shop. The to Matthews, sticking to the initial pricing strategy has paid off. “Our
MONEY
centre’s extended opening hours and 24-hour parking enable shoppers retailers benefit from the average dwell time of 92 minutes per car,”
to visit after work or school, but parking rates could have acted as a he says.
deterrent if set too high. While keeping customers in the shopping park for longer is
However, centre manager Steven Madeley is certain that the £1 clearly beneficial to sales, what about the issue of parking control and
evening charge will entice shoppers to the centre in droves. “We are enforcement? “Since April we have been able to use our number plate
working hard to keep costs down to help shoppers enjoy the whole recognition system to help us gather data on the 390,000
experience that little bit more, and to encourage more people to visit cars that visit the park each month, and have very little problem in
the city centre once working hours are over,” he says. the enforcement of disabled and parent children parking rules,”
But if charges are being lowered to attract hard-up customers Matthews explains.
during the recession, will St David’s hike parking rates once the Finding the funds to offer free parking can be tough, if not
economy starts improving? Apparently not, if Carron is to be believed. impossible, particularly in the current economy. But for Oldham
“We have looked at what we think the right level of car parking town centre, where rates were slashed for on-street parking last
charges should be, not just on opening, but for the first years of month, funding was readily available. The credit crunch war cabinet,
operation. established with the Oldham Town Centre Partnership, contains a
“This allows us to project costs and income over a long period of rapid intervention fund to support sectors of the local community
time, whilst helping us optimise use of the car parks from day one,” through the recession. Using money from the fund, the council was
he says. able to cut most charges in half and extend the maximum stay to two
Not every operator agrees with slashing rates. After all, parking hours at £1.50.
facilities and services such as lighting, signage and CCTV aren’t cheap. The council was forced to lower parking charges after local
Without direct funding, who will end up paying for the maintenance retailers argued that current levels were discouraging customers from
and security crucial to any operating car park? According to Grahame visiting their shops. Councillor Lynne Thompson, cabinet member for
Rose, development director at CP Plus, it inevitably comes back to finance and resources, explains that revising parking charges in the
the shopper. town centre was a top priority.
“Parking facilities and services have to be paid by someone, “It is crucial, especially during the credit crunch, that Oldham
whether directly or indirectly,” says Rose. “If the retailer is asked to Council listens to and acts upon the genuine concerns of traders and
foot the bill, won’t that inevitably lead to an increase in prices in the residents who use the town centre on a daily basis,” she says.
shops, ultimately impacting on the shopper and discouraging visits?” “An important part of that was to identify ways that we could
And scrapping charges altogether has its fair share of problems, intervene to play a positive role in helping secure the future of
Rose explains. “As well as acting as a revenue stream, parking charges independent local traders. We’re confident, based on what traders and
serve as an efficient way of managing parking congestion, and shoppers have told us, that slashing these charges will help promote
ensuring spaces are available for bona fide users and not monopolised the health of the High Street.”
by commuters or other unauthorised long-stay parkers,” he says
So if low rates in fact have a negative impact on consumer footfall Find out more:
and spend, what does CP Plus suggest as a long-term For more information, please contact the author or visit the website:
pricing strategy?

www.shopping-centre.co.uk/parking
“We believe in balance when it comes to pricing policies; realistic

lauren.vanderkar@jldmedia.com
www.shopping-centre.co.uk SEPTEMBER 2009 SHOPPING CENTRE
SCP14-15-SCPricing.indd 15 23/9/09 19:29:01
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