Insider Media Limited

With the likes of Jane Norman, TJ Hughes and Habitat all floundering within the last few weeks, the high street is once again in the spotlight.

Why is it that some retailers flourish while others are disappearing off the high street at an alarming rate? Why are some of our region's town and city centres doing better than others in terms of vacancy rates and viability?

There is no doubt that the macro economics that we read about in the Sunday newspapers is now starting to hit hard in terms of families disposable incomes and the continued uncertainty of the economic situation within the country.

The effects of inflation, job insecurity, non confidence in the economy, the continuing decline in both the housing market and the general economy have all started to have a major impact upon peoples spending habits.

When people don’t spend, it is the retailers that immediately feel the effect. For retail analysts such as myself, it is clear why some retailers are disappearing from the high street and why others continue to flourish. Aside form the economic situation, technology is playing a major part in retailers performance with companies such as HMV and Blockbuster forced into difficulties because of the way we now shop through online transactions.

Some businesses are badly run hence their demise. Their lack of willingness to realise the changing retail market ultimately leads to their downfall. However, not all retailers are blind and some such as WH Smith have reinvented themselves over the last few years from an aging dinosaur to a much more sleek and vibrant retailer on the high street who is now looking to expand.

Change is good and whilst retailers are predominantly at the forefront of changing fashions and business models, some retailers do not simply have the business acumen to accept that the world we live in is changing and shopping habits are changing too.

Some retailers of course continue to prosper. Despite inflation and economic worries, the major supermarkets continue to expand as their business models become evermore efficient and their buying power increases to help combat rising inflation and living costs and ultimately we all need to eat.

Despite the economic conditions, some more upmarket and luxury goods operators, such as jewellers also continue to flourish. Whilst there is no doubt that many retailers in this market, such as Thorntons are cutting back, many retailers such as Pandora and Apple continue to expand despite their products not being what one would consider to be the cheap end of the market.

Ultimately like in any business, retailers have margins and those who survive the economic and social economic upheavals in our society will be the ones that are the most efficient, are proactive in terms of change and those who simply run their businesses well and efficiently.

In terms of our town and city centres there is no doubt that vacancies are on the increase and leasehold deals are still as difficult to undertake as they were two years ago. Rents have decreased and tenant incentives have increased, lease lengths are shortening and landlords are becoming more flexible in their approach in order to secure a tenant.

All interested parties in the retail sector including private landlords, institutions, local authorities and retailers have to work together to ensure the vitality of their town or city centre remains. The Nottingham Retail BID, is working hard with retailers to improve Nottingham city centre in terms of a whole range of activities including different events, street furniture, consideration of parking charges and tackling issues such as crime and litter.

In my opinion, Nottingham’s city centre retail BID will be more pertinent in relation to the independent sector which in Nottingham for example, has suffered over the last five to ten years. Traditionally independent retail areas such as Hockley has seen a severe downturn over the last decade or so, with the number of vacant units alongside antisocial crime and litter being a particular problem.

This is contrasted to cities such as Leicester which in my opinion has a much stronger independent retail scene. Leicester City Council worked closely with Hammerson, who are the developers and owners of the recently extended High Croft Shopping Centre, to ensure that the independent retail scene would benefit and would not detrimented by the arrival of a large corporal shopping centre.

I would hope that Nottingham City Council would work with either Capital Shopping Centres or Westfield in relation to the proposed extensions to both the Victoria Centre and Broadmarsh Shopping Centres not only to redevelop one of these exiting new developments but also work together to ensure that the independent areas of Nottingham do not suffer as a result.

One thing is certain; for a large amount of retailers things are not going to improve in the short term. The economic situation will be with us for two to three years and our ongoing desire to undertake more internet shopping will ensure that the retail scene changes even more over the coming years and retailers, like any other business will have to (and most already are) adapt to meet these new challenges.