As supermarkets fall further from favour with consumers, discounters including Aldi and Lidl and upmarket brands such as Waitrose are reaping the benefits by increasing their market share. However, a new study by business insurance broker Simply Business has revealed that it is not only chain brands that are enjoying a favourable uptick in custom as consumers are once more turning to the small independent brands which were once firm high street favourites.
According to the firm’s High Street Tracker, the number of small local retailers has increased by 110 per cent during the past five years, with grocery businesses, takeaways and restaurants proving particularly lucrative for ambitious entrepreneurs. However, these were eclipsed by coffee shops – 18 per cent of all independent retail start-ups, equating to almost 6,000 new premises, opened in the past year alone in the UK.
In terms of regional statistics, the North West appears to have become something of an entrepreneurial hotspot as the number of new independent stores there increased by 18 per cent in the last year or 89 per cent over a five year period. At the other end of the scale was Northern Ireland, with an 8 per cent rise indicating that the economic crisis and ensuing recession continues to take its toll upon the confidence of entrepreneurs considering launching their own business.
Commenting on the findings, chief executive of Simply Business Jason Stockwood said; “Our latest High Street Tracker proves the north has the same strong entrepreneurial spirit as the south and you don’t have to be in London to start or run a successful independent business.
“The high street has adapted over the years to meet changing consumer needs, offering a number of new opportunities for microbusiness owners to make the most of.
“I am however disheartened to see the fall in certain sectors which reaffirms our campaign to create more support for our nation’s microbusinesses and sole traders who form a vital part of our society and economy.”
As stated by Mr Stockwood, there were indeed a number of sectors flagged by the report as potential causes for concern. These included locksmiths and laundrettes, which saw the number of stores on the high street decline by 78 per cent and 59 per cent respectively.
While the analysis of 70,000 businesses throughout the UK certainly seems to indicate a bright future for independent retailers, the most recent footfall monitor from the British Retail Consortium (BRC) and Springboard found that the number of customers visiting the high street contracted in January while the number of vacant shops rose.
This is an indication of the ongoing difficulties facing the retail sector and the retail property market which is more acute in some regions than in others. However, as this report demonstrates, current trends offer independent retailers an excellent opportunity to respond to changing consumer demands and establish a successful presence on the high street.
