Business News
High-street must adapt
Many factors have led to the half-year net reduction in stores on West Midlands high- streets reaching record levels, according to research by PwC. It has included a combination
of the growth of online shopping, shift to in-home leisure, heightened restructuring activity and continued digitisation of services. The PwC research was
compiled by the Local Data Company (LDC). The analysis tracked 5,198
outlets in the West Midlands operated by multiple retailers in 33 town centres.
‘The West Midlands saw some parts of the high-street thriving’
In the first six months of
2018, 134 stores opened, alongside 223 closures. The net difference between
store openings and closures in H1 2018 has increased to a net loss of -89 stores compared to a net loss of -33 in H1 2017 and a net loss of -44 in H1 in 2016, representing the highest net decline in the last three years. Birmingham had a net loss
of -6 stores with 30 openings and 36 closures. However, Tamworth saw the biggest net decline of -9, followed by Wolverhampton with a net decline of -7 stores. Harborne and Stafford were the only areas to see a net growth with each seeing a net growth of one store opening. The West Midlands saw some
parts of the high-street thriving, with barbers, convenience stores, beauty salons and recruitment agencies all opening a number of new premises across the region. Whereas there was a fall in
the number of estate agents, charity shops and fast food takeaway outlets, reflecting the rising customer demand for online and apps. Andy Lyon, partner and
head of retail at PwC in the Midlands, said: “The continued rate of store closures reflects the new reality of that many of us prefer to shop online and increasingly eat, drink and entertain at home. The high- street is adapting to an overcapacity in retail and leisure space resulting from these channel shifts.”
High-street resurgence: Simon Price (left) with son James of Arthur Price of England
Local retailer prospers in digital world of shopping
By Jon Griffin
Retailers on the beleaguered UK high-street can bounce back from the perilous internet era into a new period of prosperity – but only if they “make a difference.” Simon Price, chief executive of
116-year-old Lichfield-based luxury cutlery makers Arthur Price of England, says the retail sector must grasp the nettle to forge a new future in the ever-changing digital world.
Simon, who has worked with the
family firm since 1982, said: “The high-street is the coalface of business. You will see a culling of multiples, more consolidation, gone are the days when you will have 250 stores nationally. “But I see a huge opportunity for
people who do things differently. There could be a resurgence of smaller businesses – if you get the service right, have the right product and if you connect with customers, you can make that difference. “When I was a kid, I used to go
to Cotteridge with my grandmother and there were wall to wall shops, no offices. As a country there were too many shops for the population.
20 CHAMBERLINK December 2018/January 2019
‘I can see a rejuvenation of the high-street – but you have to differentiate yourself’
“There had to be a natural culling
– we have seen the likes of Woolworths and BHS go – and this year has been one of tumultuous change for the high-street.” Simon revealed that the £8m
turnover luxury cutlery firm had been forced into reviewing its own strategy on concessions after the House of Fraser crisis in August, which saw the flagship store operator fall into the clutches of maverick entrepreneur Mike Ashley. He said: “We got hit relatively
hard by the House of Fraser fall in August – we had been working with them since January 1988. “It has made us look more at our
own strategy where we have concessions. There are only three things you can do; renegotiate your contract, make it more profitable or close it. “When you get a body-blow, you
look at things in a sharper way. When you get an issue, you look at it a lot more clearly. We decided not to close any but make it work with a different formula. “We have now got about 40
concessions, not all fully manned –
in 2005, we had about 90. They are a significant part of the business, the brand coalface where people see the brand. “Everyone screams at the
internet and blames the internet – retailers are paying a huge amount in rents and council tax and are open ever-increasing hours.” Simon said online business at the
cutlery manufacturer currently represented between 12 per cent and 15 per cent of turnover. He said: “People are lazy with
the Internet. There has to be some way forward for retailers to do their business rather than compete with the internet. “I can see a rejuvenation of the
high-street – but you have to differentiate yourself. I can foresee a sea change where people realise they have got to support retailers.” He called for a Government-
endorsed campaign “from the top down” to help the high-street, including Retail Task Forces set up by local councils to fight for a more even playing field for shops.
• More retail news – page 64
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