Although the news from the retail industry has become increasingly positive of late, industry experts still believe that not enough is being done to rescue the ailing high street. This is despite the fact that, across the course of the summer, the high street consistently racked up the highest sales figures and footfall levels when compared to both shopping centres and out of town retail parks.
As a result, veteran retail boss Bill Grimsey has stepped into the debate with a number of suggestions to rival recommendations set down by Mary Portas. In fact, he claims that Portas has simply used the high street as “little more than a PR stunt” in a bid to boost the profile of her “lucrative TV makeover show”.
Mr Grimsey’s plan, laid down by himself and eight industry experts, certainly seems to be more ambitious than that of Ms Portas with a total of 31 recommendations making the list. These include, among others, offering incentives to businesses moving into empty shops and establishing a town centre commission in each local area to lay down a 20 year plan for their high street.
However, perhaps the most controversial suggestion on the list deals directly with large retailer investment into the high street. The report recommends that all retailers with an annual turnover of more than £10 million should make a one-off payment into a local economic development fund, used solely to assist in the funding of start-ups and independent ventures designed to breathe life into the high street.
Should retailers agree to the suggested sum – 0.25 per cent of their annual UK sales in 2014 – then the fund could reach a total of £550 million, dwarfing the £18 million pot invested by the government into “Portas pilots”.
Mr Grimsey believes that, by having to invest a significant amount, retailers would be more inclined to remain active on the high street rather than migrating to out of town locations.
He says; “I honestly think the time has come for the big chains to put something back and help redesign the high street.
“What we’ve seen in a lot of secondary town centre locations is that as the chains move out to more lucrative out of town sites they’re hollowing out the high street.”
Unfortunately, this plan has already been met with significant scepticism by several industry groups. They believe that the main focus of the plan is the short term and, although the review supports the freezing of business rates in 2014, it does not adequately deal with the pivotal issue.
Michael Weedon, of the British Independent Retailers Association, says; “A one-shot solution to try to solve the problems is not what’s needed.
“We think addressing the longer term issues by rewriting the way that business rates work will enable the high street to change sustainably.”
With Mary Portas facing increasing criticism for her failed attempts to rejuvenate the high street, it has become apparent that a new method may be required. However, whether this new route should be the one laid down by Mr Grimsey remains a matter of debate.
Do you think retailers should be made to invest in the high street, or do you agree that the overhaul of the business rates system should be the government’s first priority in this matter?
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