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This month, we will be giving you a little refresher of our services and what we can help you with to kick off the 2025 new year. Valuations The …
Read MoreIt has been 4 years since we published this article. This month we investigate how our high streets are faring, amid all the major UK brands that have gone into administration. Lockdown caused the closure of an average of 48 businesses per day, but it seems things might be balancing out slowly.
We will be discussing both footfall and economic activity as the main key performance indicators of high streets currently.
Many isolated events have had a knock-on effect on high street footfall and growth. Train strikes, cost of living crisis, the recession and political instability all negatively impacted high street footfall.
Retail parks have been favoured over high streets by operators as they are much more accessible and convenient. With free parking and no town centre driving restrictions, or transport strikes. A report by the British Retail Consortium found that shopper traffic had decreased this July, attributed to the election. It states that despite the warmer weather, both June and July 2024 had been weak for shopping, with people choosing to go on holiday instead. (It seems many people seek an escape from political uncertainty!)
Lower inflation, the Levelling Up Fund, the return to offices, the men’s European Championships in July, and the Taylor Swift Eras Tour in August all increased footfall. As of 2024, we are seeing 38 closures per day. However, with new business opening, that is a net value of 13 closures per day.
Despite the reign of online shopping, most predominantly during COVID-19, it seems that our shopping methods are balancing out again. Though online shopping is still taking away from the high street, we are seeing a trend of slow return of high street users with more competitive retailers. Many retailers are opting for omnichannel marketing strategies. This creates a smooth customer experience both online and in shop, enabling a blend of the two. Buying online and collecting in store is an example of that, and it gets more customers in the shop creating more footfall on the high street.
Despite some major retailers struggling, in 2024 independent businesses are faring a bit better. These usually have a more personalised marketing approach to their niche of customers. This means that targeted customers more likely to go out of their way to support the business. Recently, there has been a cultural priority to support local retailers and artisans, maybe a knock-on effect of the pandemic? Consumers know that purchases at small businesses have a greater economic impact on the community and will vote to support that with their buying power.
When assessing high streets, it’s important to consider it within the context of its wider neighbourhood. The best quality environment for a high street is one that is well connected to a nearby city which has a high paid job pool. A higher average workforce wage compared to average resident wage indicates that a disproportionate amount of the higher paid workforce lives in the surrounding towns and villages of the city. More disposable income to these towns and villages drives local consumption, and this is upheld by strong public transport links for the workforce to commute to the city to earn that high wage.
At JS Reakes, we tailor our services to your requirements. Our expertise comes with over 30 years of experience in commercial property. We are based in Bristol and cover Wales and the Southwest. Email us at [email protected] to get in touch!
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