The Changing Face of the High Street Martin Blackwell Chief Executive ATCM
Localism In England; Localism Bill Growth Review National Planning Policy Framework Local Government Finance Review Police Commissioners The High Street!
Political Agenda UK and Ireland Policy response in the UK and Ireland includes: England, Portas Inquiry Wales, Town Centre Inquiry Scotland, Town Centre Review N. Ireland, Inquiry and Review Rep. of Ireland, Town Centre Framework
Developing a Brighter Future Prepared with help from: Picture: bisgovuk/flickr
The historical heart of our communities Retail Commercial/ Professional services industrial Town Centre Leisure Public services Residential Cultural facilities These are important places: Economic value Businesses Employment Day time economy Night time economy Community value Leisure Socialising Cultural significance Emotional resonance Picture: London+/ flickr...but more than just a high street
Consumer trends to 2020 Expect choice Want to be able to shop and live on own terms. Businesses must meet our needs anywhere and anytime Use technology Technology is a part of life, use it for information, shopping, socialising, deal hunting Driven by value New outlook, less credit, high costs, depressed income Getting older Focus on good service and leisure in nice, safe, local places Want experiences Leisure is important. Want places that offer unique retail, cultural, social experiences
% Town Centres Ageing population 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 50.7% East Midlands Highest Age 50+ population growth (top 3 deciles) 2012-2020 45.8% 37.0% 36.8% East South East South West 30.5% 27.2% London Scotland Yorkshire And The Humber 18.8% 18.2% West Midlands 14.0% North West 6.9% Wales 2.4% North East How might town centres respond? Access (parking/public transport) Creation of safe environment Service (shops, cafes etc.) Community spirit (events, localism) Facilities (toilets, health) Public services brought on to high street? Picture: THEfunkyman/flickr Source: all statistics based on Experian research
% Town centres Difficult local economy 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 79.3% Lowest Area* Output (GVA) growth (bottom 3 deciles) 2012-2020 * Local Authority District 71.4% Wales North East Yorkshire And The Humber 53.8% 51.5% North West 48.5% 46.4% West Midlands 32.0% 23.2% Scotland South West East Midlands 7.2% 2.8% 0.0% South East East London How might town centres respond? Support local businesses (e.g. favourable rents and leases) Business and entrepreneur mentorship schemes Provide town centre based re-training opportunities Workable balance between budget, mass, and premium retail mix Avoid clustering of charity shops/bookmakers/fast food Support local markets and community participation Picture: www.guardian.co.uk Source: all statistics based on Experian research
% Town centres Poor local resilience 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 83.3% 49.3% 48.8% North East North West Yorkshire And The Humber Lowest Area* Business Resilience (bottom 3 deciles) 2011 29.3% West Midlands 26.4% 24.6% 23.2% 22.7% 22.4% 20.9% South West East Midlands * Local Authority District Scotland South East Wales London Experian have also estimated: - Community Resilience - People Resilience - Place Resilience Picture: ze farinha/flickr How might town centres respond? Follow the economic responses Market local uniqueness Discourage leakage to competition Involve community (community commerce) Focus on improving environment Market as the sustainable option Source: all statistics based on Experian research
% Town centres Future technology usage 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 62.3% East Midlands High e-commerce users 2018 (households) (Top 3 deciles) 48.6% 47.1% East North West Yorkshire And The Humber 37.5% 35.9% South East 30.3% West Midlands 20.8% 10.2% 9.5% 8.6% South West London North East Wales -The increase in technology/social media will impact everywhere - Online shopping highest amongst middle England groups, less for urban singles, and poor groups - Low in North East and Wales due to older populations - The London regional figures mask great variation e.g. Crayford 71% e- commerce users, Twickenham just 15% Picture: www.ishopping.org.uk Source: all statistics based on Experian research
The ingredients for a Cater to an older population: Service and facilities Access and safety Community/social focus Adapt to economic constraints Support local businesses Encourage markets Focus on training/employment Foster entrepreneurs Boost resilience to shock Community commerce Market your uniqueness Focus on sustainability Embrace technology Prepare for the future! Bridge online and offline worlds Work with retailers/operators successful future?...and give people what they want Your exact response will depend on your population s requirements for: - Value: strike a balance - Service: sets town centres apart - Experience: embrace uniqueness - Choice: variety and flexibility - Technology: use it to cement the above
Beyond Retail
The flow of knowledge Retail Online High Street
Case Study: STEAM launched in 2003 around 54 million active users In 2011 Forbes reported that Steam sales constituted 50 70% of the $4 billion market for downloaded PC games The STEAM seasonal sale is an event!
Gaining Achievements Maestro
Gaining Achievements Maestro Connoisseur
Gaining Achievements Maestro Connoisseur Traveller Hey Good Looking! Town Explorer
Research: Thought Leadership Strategy and growth - the socio-economic value Innovation - the digital High Street Competitiveness - The cost of operating in Town Centres Entrepreneurship - The future of BIDs
an experience worth having
Openness to change and alternative thinking Continuing to do the same thing and expecting a different result (Einstein s Definition of Insanity)
Contacts Martin Blackwell martin.blackwell@atcm.org Tel: 0300 3300 980