this shops cost maybe, rent £45,000 pa
rates, £20,000
staff , £50,000
elec, etc, £5,000
stock £50,000
Internet shop- £200 internet site!
As retail sales decrease from £250 billion per year, Internet sales increase year by year and are now at £50 billion, coupled with supermarkets increasing market share the high street has been running at 20% over capacity for the last few years, which means as rents are a function of demand they also are running at 20% too high.
As time moves on the influx of 18 years old who will start to be the consumers of the future, will bring a huge wave of new Internet sales, which means the high street will be running at 50% over capacity.
We can look forward to 50% of shops closing and rents and capital values decreasing by 50% - prime will hope fully still stay but this is the face of the new high street.
Central government need to find a new solution for the town centre - we have been lucky that coffee shops have been replacing a lot of retailers as food and drink is one thing that can not be consumed over the Internet, well for the time being anyway.
So what we can do about it:-
Firstly, to compete with retail parks and supermarkets car parking has to be an issue, if there are barriers to shoppers then they simply won't come, so free car parking is a must, public transport has got to be affordable as the first alternative. Park and ride , new transportation solutions.
The local councils have to attract shoppers into towns at weekends with farmers markets, street exhibitions, displays, celebrities etc, free car parking. A "big" Saturday every month, with discounts ,promotions etc and all retailers banding together. Also somebody with local council seek out new retailers , coffee houses sandwich shops, entertainment.
New retailers should not pay the standard rents, don't get fooled into signing an onerous lease, cos once it is signed, its legal. Don't sign an upward only rent review ever! RPI index linked perhaps ! Rate holidays for struggling retailers.
It is inevitable that shops will close as shopping habits change, therefore ,we need to change the shopping habits and redefine the high street. No body is every going to buy a TV or washing machine on the high street any more , it will be bought online or at a supermarket.
The supermarkets will survive so it is up to the consumer to shop at local markets for fruit and veg and cheese, all fresh food , and the local retailers need to go for bulk sales and cut margins.
Fashion will survive on the high street and especially low end fashion, such as primark , but cd shops and electrical shops are gone forever.
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