The Future of our High Streets Association of Town & City Management

Lisa Durkin North West Town Team & Portas Pilot Advisor

Town Centres are in Decline

The number of town centre stores fell by almost 23,000 between 2002 and 2012; estimated further 10,000 losses over the next couple of years

Nearly one in six shops stands vacantHigh street footfall fallen by around 10% in the

last three years (excluding central London)

Town Centre Futures 2020 Report

The decline of our town centres over the last decade

is the subject of high profile national debate…..

Despite their strong historic role, a range of factors have impacted on UK High Streets over the last decade:

• changing demographic profile in our communities

• growth in ‘omni-commerce’

• constantly evolving technologies

• changing consumer habits

• out-of-town competition and the rise of product aggregators

• challenging economic climate, which has exacerbated the problem and is squeezing consumers hard.

The Portas Review, 2011

Experian’s Town Futures Report suggests that these trends will continue with consumers demanding more

Town Centres will need to accommodate and plan for the UK Consumers of the future

Not only will they be increasingly tech savvy, but they will also place greater demands on the town centre and vote with their feet

The report identified 7 key future socio-economic groups each with differing future needs e.g. urban pulse

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”

Use technology“Technology is a part

of life, use it for information,

shopping, socialising, deal hunting”

Expect choice“Want to be able to

shop and live on own terms . Businesses

must meet our needs – anywhere and anytime”

After a weaker start in 2012, growth in NW over the next two years should broadly align with UK average

The region posted sluggish growth in particular in the 1st half of 2012

The large manufacturing sector has been impacted by Eurozone turbulence and subdued domestic demand

Growth in 2013/4 is expected to be largely in line with UK average with 2014 buoyed by stronger investment and consumption

Unemployment has also declined by 1.2% in the year December to February 2013, but it remains higher than UK figures

Families will make up a quarter of population in 2019, alongside significant numbers of hard-pressed groups

‘Family Value’ the price conscious squeezed middle (mid to lower income families) represent the highest proportion of the total and are above UK average

‘Daily challenges’ hard pressed singles and families are highly over-represented in NW

‘Tough Vintage’ struggling older singles and couples also represent a greater proportion than UK population

It must be noted however that there is significant over-representation of affluent groups in some centres e.g. Knutsford

Top 3 Consumer Types in North West

1. Value: the ‘squeezed bottom’2. Use technology: price comparison voucher hunting,

socialising

•

Daily Challenges

•

1. Value : the ‘squeezed middle’2. Experience: safe places for leisure3. Use technology: purchase, price comparison

•

Family Value

•

1. Value: very low income2. Service: friendly and local3. Use technology: unlikely

•

Tough Vintage

•

Over the next decade

0-19 year olds will continue to make up the largest proportion of the population followed by the 50+ age group

The greatest growth however is anticipated in the younger middle aged group (30-39) and the oldest groups (65+)

Ensuring that the town centre offer appeals to older age groups will be critical

Middle age group and older population look set to grow at fastest pace within the region

Consumer spending is anticipated to lag behind UK average

We expect spending in the region to see modest growth of 0.8% in 2013 as incomes remain under pressure.

In 2014, growth will pick up to 1.3%, but this rate is lower than UK average

Again it must be noted that whilst this represents the regional picture – there are real pockets of affluence with high levels of consumer spending

% growth Spending Income

2013 2014 2013 2014

East Midlands0.6 1.2 -0.2 1.0

East of England1.5 2.0 0.3 1.3

Greater London1.6 2.1 1.1 1.6

North East0.6 1.1 -0.4 0.6

Northern Ireland0.6 1.1 0.0 0.9

North West0.8 1.3 0.1 1.0

Scotland0.7 1.2 -0.2 0.7

South East1.3 1.8 0.5 1.4

South West0.9 1.4 0.1 1.2

Wales0.7 1.2 -0.3 0.6

West Midlands1.0 1.2 -0.3 0.7

Yorks. & Humber0.9 1.4 -0.1 0.7

UK

1.1 1.5 0.2 1.1

High Street footfall continues its downward trend, with high decline in North West

High Streets across the UK have suffered declining year on year footfall for several years

The North West experienced a year on year drop of 10.9% (week 26 2012-2013)

The trend is expected to continue in the medium term

Complex issue due to decline in consumer spending and growth of online economy

SWOT Analysis: North WestStrengths Weaknesses

• Relatively strong growth in 30-39 age group

• Business optimism remain positive• High representation of family groups

• Unemployment high• Stark economic and socio-demographic

variations across centres• Declining high street footfall• High retail vacancy• Large proportion of less affluent groups

Opportunities Threats• Growth should broadly align with UK

average• Growth of E-commerce• There will be a need to cater for hard-

pressed older and younger groups, but also pockets of affluent population

• Consumer spending is set to remain behind the UK average

How do Town Teams Respond to Future Drivers of Change?

The Portas Review - An independent Review into the Future of our High Streets December 2011

Report produced 28 Key recommendations

A few Portas Inquiry Recommendations…

• Favourable Rating regime • Town Centres need to be effectively

managed• The need for improved car parking and

accessibility• Deregulation and freeing up of red tape• Planning policy• Focus on making high streets accessible,

attractive and safe 2. Empower successful /#sthash.gXJtUSAU.dpuf

Portas Review Response – c. £20 M

• High Street innovation fund (100) – £100K (£10 M)

• Portas Pilots – 27@ £100K (£2.7 M)

• High Street Renewal Fund – £1,000,000

• Town Team Partners – 320@ £10,000 (£3.2 M)

• Business in the Community Support

• ATCM Support

North West Portas Pilots; Nelson, Stockport, Morecambe, Liverpool – Lodge Lane

Portas Pilot Support package £100k +… • Free mentoring and support from retail industry

leaders including ATCM, Mary Portas’s own team and from the retail industry;

• Access to sector and industry experts, such as the Arts Council, National Association of British Market Authorities, the Local Data Company and Springboard

• Opportunities to meet and discuss with fellow pilots to share their experiences and lessons learned

• Dedicated contact point in Government to provide advice and support in identifying and overcoming challenges to local business growth.

What are we delivering ?

Improved leadership

• Getting a full business plan• Active board in place for Town Teams• Governance and structure• Future Towns • Economic Resilience Diagnostic • Business Planning • Partnership Development • Chairing Town Teams • Conflict Resolution

Greater Capacity

• Getting a full business plan• Active board in place for Town Teams• Governance and structure• Future Towns • Economic Resilience Diagnostic • Business Planning • Partnership Development • Chairing Town Teams • Conflict Resolution

What is being Delivered

• Markets• Pop Up Shops/Cinemas• Loyalty Scheme /Shop Local• Christmas Shopcrawls• Environmental Improvements• BIDs Feasibility• Business Incubation and training• Cultural & Sporting Events• Promotion and Marketing • Vacant Shops

Encouraging Shoppers to Town with Markets

‘This year’s Love Your Local Market fortnight ran from 15-29 May 2013. Just under 700 places ran 3,500 markets during the fortnight, and almost 3,000 free or subsidised pitches were taken by new traders. This builds on the success of last year when almost 400 markets and 2,200 new traders were involved. ‘

Providing accessible and affordable parking

Government has supported this by: • Changing planning rules so that councils are free to offer as much parking in town centres as appropriate; • Scrapping minimum charge rules and issued guidance which encourages councils to set competitive parking charges; • Removing regulations which restricted supply of local car spaces; • Making data generated by local authorities (including income generated from parking fees and charges) available and accessible to the public.

Getting Empty Properties Back in to use

• Government have made it easier to change the use of buildings to support our high streets and businesses•Pop up Shops - Pop-Up Britain and Local initiatives offer practical help and advice to support start-up businesses and encourage greater consumer Footfall.

Town centre management can be an important tool for revitalising high streets

Place Management Initiatives

Business Improvement Districts (BIDs)

Town Centre Management

Others/ Hybrid

150 + BIDs- Established in 2004- Typically levy of 1% of rateable value - Estimated cost for set up: £50,000-100,000 & 18months – 2 years• 32 reached end of mandate of which 31 renewed mandate• £61m raised through levy and additional £107m realised through leveraging• E.g.: Ealing, Kingston, etc.

500 towns with Town Centre Management initiatives- Around 20 years old- Informal or formal - Private and public stakeholders- Henley Centre/ BCSC: occupier mix & promotional activities are key to success- Focus on improving public spaces, activities, diverse & differentiated offer.E.g.: St.Annes-on-Sea, Stockport

Community Interest CompaniesIntroduced in 2005Type of social enterprise which only allows assets and profits to be reinvested in the community or in other CICs E.g.: Reading

Portas Pilots27 Portas pilot areas Allow testing of Portas recommendations and shared learning

Town Team Partners Approx. 330

Source: BIS & GENECON (2011) Understanding High Street Performance

Slide Title

The Next Phase

The enthusiasm shown by Portas Pilots and Town Teams is amazing. Mainly volunteers

• The Future High Street Forum - brings together leaders from retail, property, business, academics, third sector, civil society and government to better understand the competition town centres across the country face and to drive forward new ideas and policies to help the high street compete and adapt.

The Next Phase

• Look at the Barriers and enablers for success including business rates, property ownership and management, accessibility and parking and planning

• Building a picture of what the future high street will look like, and templates that can be used and built on by the different models of high streets.

Raising the Quality of Town Centres in the Future

Destinations • Safe, attractive & fun

Mixed use • A balance of activities & attractions

Leisure & NTE • An integral part of the offer

Consumer responsive • Capture the missing market

Management 24/7

• Self-regulating neighbourhoods

“The 20th Century was about getting around. The 21st Century will be about staying in a place worth staying in.”

James H Kunstler: The Geography of Nowhere

In Summary

Town Centre Futures Checklist

Is there a clear understanding of the

unique characteristics of my local

town?

What is the impact of local, national

and global trends on my town centre?

What are the core strengths and

weaknesses, opportunities and

threats?

Which specific issues are key

priorities for my town centre?

What is the local vision and is it

bought into by key stakeholders –

funding?

Is there a SMART action plan in

place to deliver on these objectives?

How will we monitor success?

Effective Partnerships - Have we got the right people sat around the table?

Capacity building – How do we resource our plan?

Town Teams are the first step to building robust partnerships

Get in touch…

Lisa Durkin Town Team Advisor North West

e: lisa@place-shaper.co.ukm: 07970 752989 Twitter:@PlaceShaper @TownTeamNW