East Mids retail will pick up, says Cox
By Stephanie Bartup, Midlands Correspondent
The East Midlands retail sector has "no reason to feel gloomy", according to Wayne Cox, senior partner at KPMG in Nottingham. Amidst the region's recent high street difficulties, with poor results and cutbacks from retailers including Blacks and Thorntons, Cox said the proposed redevelopment of Nottingham's Broadmarsh and Victoria shopping centres would not price-out smaller retailers.
He said: "I think there will be opportunities for all retailers if all the developments go through. Niche retailers will do very well; it all depends on the product offering rather than the sector."
Cox said the luxury end of the high street seemed to be keeping its head above water.
"Retailers are in a difficult place at the moment – but there are winners. The luxury market seems to be doing very well at the moment. The squeeze is mainly focussed on people with less money to spend.
"The ones doing well and which will continue to thrive are the retailers which offer extras, for example price comparisons or technical support. Consumers like to know they're getting more for their money."
In the last month, Northampton-based outdoor clothing retailer Blacks was forced to turn to a £40m banking facility to help lift ailing revenue. The retailer announced a sales drop from £61.3m to £54.6m in its latest trading update on 15 July.
Chocolatier Thorntons, based in Alfreton, announced it was to close 180 of its UK stores after revealing a £1.9m fall in sales in its latest eight-week trading update on 13 July.
However, Cox said: "I don't think East Midlands retailers have any particular reason to feel gloomy - the region has got an awful lot going for it in the retail market, and isn't missing anything sifgnificant from other big cities like Manchester and Birmingham."
He added that despite the rapidly growing online offering, that was only "part of a package" which retailers had to have to remain a success.
"Obviously, each industry is different, and not every retailer can work with the internet as others can. Fundamentally, retailers need a strong presence and they need footfall to survive.
"Even if people look for a product online, research shows that up to 80 per cent of people then go into a store to buy the product if they can. Most importantly, retailers need a strong, vibrant presence – I think the redevelopments to Boradmarsh and Victoria will be a great thing for the region, and could really boost retailers' momentum."
