Factors that influence High Street change and identifying priority

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Transcript Factors that influence High Street change and identifying priority

50 years of change and a model for the future

Cathy Parker and Simon Quin @placemanagement #HSUK2020

Good morning and welcome  Welcome particularly to representatives of our partner towns: • Alsager, Altrincham, Ballymena, Barnsley, Bristol (St George), Congleton, Holmfirth, Market Rasen, Morley and Wrexham

Welcome also to our international • • • • • • • webinar participants Australia • Canada • Cyprus Germany Greece Italy Malaysia • • • • Netherlands Portugal Poland Sweden United Kingdom …and Isle of Man https://mmu.adobeconnect.com/uk2020mmu/

Agenda 09.30 – 10.30

10.30 – 11.00

50 years of high street change & a model for the future Break 11.00 – 13.00

@placemanagement Repositioning, reinventing, rebranding & restructuring your high street #HSUK2020

Parliament June 2014

The challenge….and some background

@placemanagement #HSUK2020

Change in retailer location 2000-11 Out of town up 50 million square feet Town centre down 46 million square feet

100,000 !

35% 30% 25% 20% 15% 10% 5% 0%

Loss won’t be uniform

Centre for Retail Research 2013

Department for Transport 2011

Department for Transport 2011

900 800 700 600 500 400 300 200 100 0

Change in Tesco store format

47% of stores over 25,000 sq ft 66% of stores under 5000 sq ft

1

1972

2

1995

Dawson J 2004

Generating 70% of retail sales

29000 retailers

1971

100 retailers

2004

Food Durable goods Bulky goods

Actual Town Centre Town Centre plus 300 metres

Planning Statistical Release 4, DCLG, 2009

Percentage of newly built retail space in town centres: 1971-2008

Online retailing

Online share of home retailing 2014 Italy Poland Spain France Netherlands Europe av Sweden Germany US UK 0,00% 2,00% 4,00% 6,00% 8,00% 10,00% 12,00% 14,00% 16,00% Centre for Retail Research 2013

Growth Forecasts

Online retailing

16% pa

£52 bn in 2015 M-retailing 62% this year £7.92 bn

Centre for Retail Research 2013

Town centre share of retail spend

2000 49.4% 2011 42.2% 2014 39.8%

Parliament 2014

The response

@placemanagement #HSUK2020

• • • • • • • Vital & Viable Town Centres Planning Policy Guidance/Statements Business Improvement Districts High Street Britain 2015 The Portas Review Understanding High Street Performance Future High Streets Forum

Nature of TCM schemes

IPM 2009

Focus of TCM schemes

Influencing strategy Forming strategy Service delivery

PWC 2008

The 4 As

Attractions Action Amenity Accessibility

The 4 As

What the centre has to offer Making things happen Getting into, out of, and around centre Experience within centre Spatial Macro Meso factors

The research

@placemanagement #HSUK2020

10000 studies found 2345 after clean up 923 ‘retail’ highlighted 253 town centre/high st 173 studies reviewed @placemanagement #HSUK2020

Review parameters

1. Type of study (empirical, exploratory, conceptual) 2. Methodological evidence 3. Data source (primary, secondary, tertiary) 4. Dependent variable (retail area performance measure) 5. Independent variables (factor affecting performance) 6. Significance (major findings and statistical significance if available) 7. Limitations (flaws, weaknesses etc.) 8. Author, date, publisher 9. Geographical location (UK, US, Europe, e.g.) 10.Size of retail/shopping centre (Different geographical scales of place, e.g. city centre, town centre, high street, neighbourhood centre, district centre, suburban centre)

Time in minutes per review

Retail Restructuring and Consumer Choice 1: Long-term local changes in consumer behaviour: Portsmouth, 1980 2002

38 mins

US nationwide trends in metropolitan retail trade: A perspective of the mid 1980s

Most of the studies were empirical

Historical Other Explanatory Empirical Conceptual

Most published in the last 10 years

Mostly from UK and Europe

Focus of data City Centre Town Centre High Street Neighbourhood Centre District Centre Suburban Centre Out of town Centre

166 factors influence performance

And if 166 factors were not enough…..

• • • Partner towns identified 50 additional factors that influence the High Street 33 additional studies reviewed 201 factors finally identified, but: – how much influence does each one have? – what should towns be focussing on?

The Delphi Technique

The Delphi method is unique in its method of eliciting and refining group judgement as it is based on the notion that a group of experts is better than one expert when exact knowledge is not available.

(Paliwoda, 1983).

22 Experts participated

Practitioner

Major retailer Shopping centres owner Urban consultant Retail letting agency Urban policy group Trade association Professional body

Academic

Manchester Metropolitan University University of Leicester University of Dundee University of Ulster Oxford University University of Manchester University of Liverpool University of Portsmouth University of Loughborough

Consensus reached on

1. How much influence each factor has on the vitality and viability of the High Street 2. How much control a location has over the factor

You can’t control everything

Spatial Macro Meso Micro

The model

@placemanagement #HSUK2020

4 Child-minding centre 3,5 Deliveries 3 2,5 2 Political climate Methods of classification 1,5 1 2 Spatial structure Location 2,5 3 3,5 4

Amount of influence factor has over vitality and viability

4,5 Opening hours Leadership 5

Influence relationships

• • • Weak inverse relationship between influence town has over factor and influence factor has over vitality and viability As a rule of thumb the more a factor influences vitality and viability, the less you can do about it Towns need to focus on factors they can influence, and where that influence will impact on vitality and viability

4 3,5 Child-minding centre

Not worth it!

Deliveries 3 2,5 Opening hours

Get on with it!

Leadership 2 Political climate Methods of classification 1,5 1 2

Forget it!

Live with it!

Spatial structure Location 2,5 3 3,5 4 4,5

Amount of influence factor has over vitality and viability

5

Top 25 priorities

3,900 3,700 3,500 3,300 APPEARANCE PLACE MARKETING PLACE ASSURANCE NECESSITIES EXPERIENCE NETWORKS & ENTERTAINMENT AND LEISURE PARTNERSHIPS WITH COUNCIL RECREATIONAL SPACE Anchor stores MERCHANDISE ACTIVITY HOURS MANAGEMENT VISION&STRATEGY RETAILERS ADAPTABILITY Chain vs independent WALKING DIVERSITY 3,100 2,900 Safety/crime LIVEABLE ATTRACTIVENESS Comparison/convenience Barriers to Entry ACCESSIBLE 2,700 3,300 3,500 3,700 3,900 4,100 4,300

How much factor influences vitality and viability

4,500 4,700

Forecasting the future of your high street

@placemanagement #HSUK2020

High Street UK 2020

Spatial factors

Location Distance to centre Size/Type of town Spatial structure

Towns can’t do anything about these factors!

High Street UK 2020

Macro factors

Economy Consumer trends Business rates Ageing population Technology Retail planning policy

Towns can’t change these on their own

High Street UK 2020

Meso factors

Barriers to entry Competition (other towns) Comparison/Convenience Out of town shopping Tenant variety Vacancy rates

Towns interact with these/have some Influence

High Street UK 2020

Micro factors

Cleanliness Visual appearance Networking Opening Hours Attractions Centre Marketing Amenities Car-parking Entertainment Leadership

RESULTS from #HSUK2020 towns

Spatial Macro Meso Partnerships have 63.89 % of potential influence Micro

How much control do our HSUK2020 towns have?

4,50 4,00 3,50 3,00 2,50 2,00 1,50 1,00 0,50 0,00 Delphi Average

“..lively, diverse, intense cities contain the seeds of their own regeneration…”

How do you manage change?

Repositioning Dr Steve Millington Reinventing John Pal Rebranding Dr Mihalis Kavaratzis Restructuring Professor Deborah Peel