Retail


Sector Focus ‘Absurd’ rates system damages Beales


Department store Beales is the latest victim of the “absurdity of the business rates system”, a Birmingham business rates expert has said. John Webber, head of business


rates at Colliers International, said that the department store – now in administration – had been making huge overpayments in its business rates bills. Beales was founded in 1881 in


Dorset, and went into administration on 20 January. It was announced last month that all of the company’s stores would be closed, leading to the loss of 1,000 jobs. According to Mr Webber, the


chain’s business rates bills have been a contributing factor to its financial problems. He said: “Beales’ 23 stores are all


over the country and according to estimates by Colliers, the company was due to pay a total of £2.847m in business rates this year. “This is more than they should


be and all due to downwards phasing introduced following the 2017 revaluation. “In Beale’s case, the company


saw a 14 per cent decline in its rateable value in the 2017 valuation and therefore should have seen at least a 14 per cent reduction in its rates bill. In reality it only saw a three per cent drop in 2017/8 and in subsequent years the drops were -1 per cent and -2 per cent. “In a period in which retail has


already been struggling due to internet competition and other


rising costs, such reductions have been pitifully inadequate. “Adding up the four years of


overpayment by Beales, Colliers estimates the retailer has paid £1.060m in business rates more than it should have in the years since the revaluation. “With all the other issues Beales


has been facing in the current climate, this would certainly have contributed to the business’s current demise. Even Tony Brown, chief executive of Beales, has called the business rates situation at the company ‘lunacy’ and claimed that in some stores the rate bill was three or four times the rent bill.”


Colliers has been a longstanding


critic of the Government’s policies on business rates, which it said were threatening to decimate Britain’s high-street. Colliers says that two flagship


John Lewis stores in Birmingham and Solihull are among those in the chain which are facing a business rates bill of more than £1m. Together the two stores have


been facing a rates bill of £2.48m this year, rising to £2.55m next year. The Birmingham and Solihull


branches are two of 21 John Lewis department stores that have a rates bill of more than £1m for the 2019/20 tax year, while the entire business


(not including Waitrose) has a business rates bill of around £57.4m for the current year. Mr Webber said the rates bill


faced by the John Lewis chain highlighted the need for change to what he described as the ‘punitive tax’ of business rates, and tackle their damaging impact. “Maintaining a punitive tax


system against the bigger retail players while providing relief for the smaller retailers, does little to prevent store closures and job losses. When quality retailers like John Lewis start to feel the pinch, we know we are really in trouble,” he said.


How to improve the customer experience


At Bullring & Grand Central we look back on 2019 with a huge amount of pride. We welcomed a number of new brands, including one of only two new stores Lego opened in the UK last year, delivered a highly successful programme of events and even hosted a visit by one of the biggest YouTube stars in the world, James Charles. With over 57 million people


visiting the centre last year, one of our main priorities for 2020 is to


look at how we can build on our successes and improve the customer experience even further. We’ve already made progress. In


January, Norwegian-inspired fish and seafood specialists North Fish announced that it is joining the line- up at Bullring & Grand Central. The brand’s first UK restaurant will open on St Martin’s Walk later in the year offering a range of fish and seafood dishes, and will cater for up to 54 covers.


and back of house areas, including the introduction of a bespoke bar and new-look for the restaurant, as well as an update to its menu. Holland & Barrett also recently


Retail Therapy


By Stephanie Lacey General Manager, Bullring & Grand Central


You can’t stand still in retail, and


the past few months have seen a number of existing tenants reinvest in their units with updated shopfits and the introduction of new in-store features. Holy Moly, located in Grand Central, recently underwent a major refurbishment with adjustments made to both its front


unveiled its new Clean & Conscious Beauty concept – the first in the UK – in its store at Bullring, bringing customers over 900+ new beauty lines, and The Entertainer is expected to reopen after extensive refurbishment works next month. We’re also making changes to


our mall spaces, to improve the overall experience for our consumers. This year we will be launching phase 2 of the £2m upgrade works to New Street Mall. The first phase was completed


last November, comprising an enhanced internal walkway, new seating, and an innovative lighting installation; and the second phase – forecast for completion in later this Spring – will create a new double- height atrium for a more visible and


attractive entrance from New Street and Stephenson Place. We put the customer experience


at the heart of everything we do. One element of this is our extensive events schedule that we’ll be delivering again in 2020. We’ve got a lot planned including


a cultural, arts and entertainment programme organised in partnership with Birmingham Hippodrome, and a whole range activities suitable for all the family. Some of our successes from January and February include our Festival of Light installations in the external spaces of the mall, as well as our Chinese New Year celebrations. We certainly have lots planned


for the next few months; new brands, events and upgrades to our mall, all of which are designed to provide our customers with an even more engaging and exciting experience, every time they visit.


March 2020 CHAMBERLINK 81


John Lewis’ flagship store in Birmingham faces a business rates bill of over £1m. Inset: John Webber


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92