With the economic situation uncertain at best in the UK currently, it is hardly surprising that town centres in many areas are failing to live up to their potential. As out of town retail parks and internet shopping grow in popularity, traditional retail areas such as town and city centres slip deeper into decline, with many retailers choosing to relocate to more profitable areas.
In the GVA’s annual Scottish Town Centres report, it was found that the levels of retail floor space being delivered has sharply declined as a result of the recession, meaning that retailers looking into certain areas have been left with limited options. Possibly as a result of this lack of choice, proposals and applications at the front end of the pipeline have also greatly reduced in the past year.
However, local authorities in Scotland are now beginning to realise that town centres must be preserved, and that retailers in these areas must be aided in order to allow the towns themselves to thrive. In response to the figures discovered by GVA over the past twelve months, 76 per cent of surveyed local authorities cited their intention to prepare town centre strategies over the next year in order to draw consumers back to the high street.
A further 57 per cent announced their intention to allow for greater flexibility in town centre developments, meaning that planning permission requirements may be met more swiftly thus ensuring greater fluidity in the retail development sector.
And as a means of encouraging local retailers to expand their businesses, whilst simultaneously attracting larger businesses back to the high street, 29 per cent of local authorities are now considering the provision of business rate relief or reducing rental costs to help retailers through the recession.
Yet with around 68 per cent of developments in town centres and outlying areas having stalled this year, there could well be a problem in making Scottish town centres competitive retail areas in coming years. Due to many factors, including lack of developer interest, lack of development funds and weak occupier demand, 21 out of the 31 development plans identified in local authorities by the GVA have failed to get off the ground, leading to a reduction in available units for interested retailers.
Paul Ronce, associate in planning development and regeneration at GVA, believes that local authorities must work closely with developers and retailers in order to re-enliven Scottish town centres as prime retail areas.
He says; “The key to unblocking the development pipeline is not the production of lengthy documents and strategies, but to create an environment for delivery.
“Close working partnerships between the public and private sectors and key stakeholders, including political consensus, will maximise the ability to deliver successful development and ultimately successful town centres.
“Each town must be looked at individually as the issues, problems and solutions for a particular town centre will never be directly replicated.”
Of course, not all Scottish towns and cities have been as strongly hit by the financial crisis in the same way, with Edinburgh, Dundee and Dunfermline all having performed relatively well in the field of prime retail yields between June 2011 and June 2012. As such, retailers are now more attracted to these areas, thus lowering occupancy rates in many other areas of the country.
While developments struggle to get off the ground and retailers battle for floor space in Scotland’s most successful towns, it appears that some areas really do need a miracle in order to make their town centres profitable once more. But, with the beginnings of economic recovery appearing every day, local authorities may find the time is ripe for aiding developers and retailers – hopefully, in preparation for the boom time that surely must follow this long double dip recession.
Do you think local authorities or councils should be putting the brakes on developments, especially when the high street is struggling to remain profitable in all areas of the UK? How do you think town centres could attract successful retailers back into their area?
