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| Barbers and bookies fill gaps on high streets as independent shops shut | Barbers and bookies fill gaps on high streets as independent shops shut |
| (about 17 hours later) | |
| Britain's high streets are in the midst of a revolution as traditional independent shops are rapidly being replaced by service providers such as barbers, bookmakers, coffee shops and nailbars. | Britain's high streets are in the midst of a revolution as traditional independent shops are rapidly being replaced by service providers such as barbers, bookmakers, coffee shops and nailbars. |
| Independent clothing stores, shoe shops and newsagents are shutting at a record rate with nearly 200 closing in the first half of this year, about the same number as in the whole of 2012, according to a report. | Independent clothing stores, shoe shops and newsagents are shutting at a record rate with nearly 200 closing in the first half of this year, about the same number as in the whole of 2012, according to a report. |
| But despite predictions of the death of the high street, the total number of independent outlets has crept up by 424 – or 0.4% – as entrepreneurs opened cafes, beauty salons, bookies, pawnbrokers and mobile phone outlets, said the British Independent Retailers Association and research firm the Local Data Company (LDC). | But despite predictions of the death of the high street, the total number of independent outlets has crept up by 424 – or 0.4% – as entrepreneurs opened cafes, beauty salons, bookies, pawnbrokers and mobile phone outlets, said the British Independent Retailers Association and research firm the Local Data Company (LDC). |
| "This is fundamental structural change. No longer will shopping be the primary reason to visit a town centre. We are seeing the death of traditional shops and the rise of services which offer the personal touch, the things you can't buy at the supermarket or online," said Matthew Hopkinson, director of LDC. | "This is fundamental structural change. No longer will shopping be the primary reason to visit a town centre. We are seeing the death of traditional shops and the rise of services which offer the personal touch, the things you can't buy at the supermarket or online," said Matthew Hopkinson, director of LDC. |
| He said 8% of independent stores had either opened or closed in the last six months, a dramatic increase in the rate of "churn" from 1% in the first half of last year. | He said 8% of independent stores had either opened or closed in the last six months, a dramatic increase in the rate of "churn" from 1% in the first half of last year. |
| The evidence of rapid change comes in a week when the future of the high street will be hotly debated. Mary Portas, the "queen of shops", will appear before a parliamentary committee on Monday to discuss progress since her review of the high street nearly two years ago, and on Wednesday the veteran retailer Bill Grimsey will outline a battery of tactics to help revive town centres. | The evidence of rapid change comes in a week when the future of the high street will be hotly debated. Mary Portas, the "queen of shops", will appear before a parliamentary committee on Monday to discuss progress since her review of the high street nearly two years ago, and on Wednesday the veteran retailer Bill Grimsey will outline a battery of tactics to help revive town centres. |
| Grimsey, the former boss of Wickes and Iceland, has said nearly half the country's 44,000 retail businesses are "zombie companies" in the commercial equivalent of negative equity, with £2.3bn of liabilities, and a quarter of those under threat can be expected to fail in the next three years. | Grimsey, the former boss of Wickes and Iceland, has said nearly half the country's 44,000 retail businesses are "zombie companies" in the commercial equivalent of negative equity, with £2.3bn of liabilities, and a quarter of those under threat can be expected to fail in the next three years. |
| Amid estimates that 14% of shops in Britain stand empty, Grimsey will call on the government to give a 50% discount on business rates to retailers opening in premises that have been vacant for a year. He also wants the immediate introduction of a business rates revaluation due for 2015 and a freeze on rates from next year. He will suggest councils use their capital reserves to help fund small businesses. | Amid estimates that 14% of shops in Britain stand empty, Grimsey will call on the government to give a 50% discount on business rates to retailers opening in premises that have been vacant for a year. He also wants the immediate introduction of a business rates revaluation due for 2015 and a freeze on rates from next year. He will suggest councils use their capital reserves to help fund small businesses. |
| Michael Weedon, deputy chief executive of the British Independent Retailers Association, said independent stores were leading change in town centres as big chain stores pulled out. "They are the best hope that our high streets have. But the margin between openings and closings, between vibrant health and sickness in the town centre environment, is just 0.4% in the first half of this year, far too fine a margin for comfort," said Weedon. | Michael Weedon, deputy chief executive of the British Independent Retailers Association, said independent stores were leading change in town centres as big chain stores pulled out. "They are the best hope that our high streets have. But the margin between openings and closings, between vibrant health and sickness in the town centre environment, is just 0.4% in the first half of this year, far too fine a margin for comfort," said Weedon. |
| Just a 10% decline in the number of independent stores would result in nearly 30,000 empty high street premises, double the current number. | |
| The report shows that independent stores are suffering more in some parts of the country than others. Surprisingly, given its resilience during the economic downturn, London and the south-east saw the greatest loss of independent stores while Wales saw the biggest rise, up 3.3% after a 3.3% drop in 2012. | The report shows that independent stores are suffering more in some parts of the country than others. Surprisingly, given its resilience during the economic downturn, London and the south-east saw the greatest loss of independent stores while Wales saw the biggest rise, up 3.3% after a 3.3% drop in 2012. |
| Weedon said: "The Westminster government should take a look at the thoughtful work that the Welsh government has put into considering using business rate income for some good by supporting retailers opening in units that have been empty for over a year, while reining back on the massive rate discounts that have made the charity shop sector a leader in high street growth." | Weedon said: "The Westminster government should take a look at the thoughtful work that the Welsh government has put into considering using business rate income for some good by supporting retailers opening in units that have been empty for over a year, while reining back on the massive rate discounts that have made the charity shop sector a leader in high street growth." |
| He criticised plans for another rise in business rates next year which he said would add £200m or more to independent stores' costs after a £175m lift last April. | He criticised plans for another rise in business rates next year which he said would add £200m or more to independent stores' costs after a £175m lift last April. |
| The government is likely to come in for criticism this week as the high street continues to struggle amid worries that few of Portas' 28 recommendations have been put into action. | The government is likely to come in for criticism this week as the high street continues to struggle amid worries that few of Portas' 28 recommendations have been put into action. |
| When she appears before the communities and local government select committee, she will discuss the progress of the 27 "Portas pilots" schemes which each received £100,000 to fund new ideas to regenerate the high street. Another 326 town teams received £10,000 each. | When she appears before the communities and local government select committee, she will discuss the progress of the 27 "Portas pilots" schemes which each received £100,000 to fund new ideas to regenerate the high street. Another 326 town teams received £10,000 each. |
| While some projects have clearly brought results, others have been criticised for being slow to spend the cash and for wasting it on questionable initiatives, such as the £1,600 Peppa Pig costume hired by Dartford council to appeal to families. In February, the first wave of 12 Portas pilot towns were revealed to have spent only 12% of the money handed to them and only two had managed to cut the number of empty shopping outlets. | While some projects have clearly brought results, others have been criticised for being slow to spend the cash and for wasting it on questionable initiatives, such as the £1,600 Peppa Pig costume hired by Dartford council to appeal to families. In February, the first wave of 12 Portas pilot towns were revealed to have spent only 12% of the money handed to them and only two had managed to cut the number of empty shopping outlets. |
| Amid concerns that the pilot towns were not getting enough support, the government set up the Future High Streets Forum, a group of retailers, academics and trade bodies, to help speed up the pace of response to the high street's problems. | Amid concerns that the pilot towns were not getting enough support, the government set up the Future High Streets Forum, a group of retailers, academics and trade bodies, to help speed up the pace of response to the high street's problems. |
| On Sunday Eric Pickles, the communities and local government minister announced teams of local experts would this month start training the leaders of the 326 Portas "town teams" in use of planning powers to reshape the high street to adapt to changing consumer behaviour. | On Sunday Eric Pickles, the communities and local government minister announced teams of local experts would this month start training the leaders of the 326 Portas "town teams" in use of planning powers to reshape the high street to adapt to changing consumer behaviour. |
| The government has also mooted changes to planning law to allow councils to convert empty shops into housing and cut business rates for some small businesses. Recently Pickles called on local councils to cut parking charges which he said "undermine the viability of town centres". | The government has also mooted changes to planning law to allow councils to convert empty shops into housing and cut business rates for some small businesses. Recently Pickles called on local councils to cut parking charges which he said "undermine the viability of town centres". |
| Caffeine culture goes independent | Caffeine culture goes independent |
| It calls for a celebratory full-roast choca mocha – in their fightback against chains such as Starbucks and Costa, independent coffee shops have become the fastest-growing small businesses on the high street. | It calls for a celebratory full-roast choca mocha – in their fightback against chains such as Starbucks and Costa, independent coffee shops have become the fastest-growing small businesses on the high street. |
| The number of boutique coffee shops in Britain's top 500 town centres grew by nearly 500% in the first half of this year compared with last year, according to the Local Data Company, as 60 new businesses sprang up fuelled by Britons' passion for caffeine. | The number of boutique coffee shops in Britain's top 500 town centres grew by nearly 500% in the first half of this year compared with last year, according to the Local Data Company, as 60 new businesses sprang up fuelled by Britons' passion for caffeine. |
| Matthew Hopkinson, director, of LDC, said: "The pace of growth of independents is interesting in the light of the fact that coffee chains are also continuing to grow rapidly. It demonstrates there is a gap in the market for new and innovative ways of doing something that has been done before."With money tight for many during the economic downturn many independent retailers have suffered. But coffee shops are benefiting from their ability to offer a fairly cheap and cheerful treat backed by more personality, quirkiness and the loyalty built up through personal relationships between owner-managers and their customers. | Matthew Hopkinson, director, of LDC, said: "The pace of growth of independents is interesting in the light of the fact that coffee chains are also continuing to grow rapidly. It demonstrates there is a gap in the market for new and innovative ways of doing something that has been done before."With money tight for many during the economic downturn many independent retailers have suffered. But coffee shops are benefiting from their ability to offer a fairly cheap and cheerful treat backed by more personality, quirkiness and the loyalty built up through personal relationships between owner-managers and their customers. |
| Tom Hiskey, who reviews independent cafes around the country for his Cosy Coffee blog, said better knowledge about coffee has also helped independent shops to thrive. | Tom Hiskey, who reviews independent cafes around the country for his Cosy Coffee blog, said better knowledge about coffee has also helped independent shops to thrive. |
| "Awareness of good coffee has shot up in the last few years. There was a massive concentration of new independent shops in London and people saw the benefits of being able to chat to the owners, and found it was cosier and more personal than going to Starbucks. Now there are similar places springing up around the country," he says. | "Awareness of good coffee has shot up in the last few years. There was a massive concentration of new independent shops in London and people saw the benefits of being able to chat to the owners, and found it was cosier and more personal than going to Starbucks. Now there are similar places springing up around the country," he says. |
| Gina Sleightholme, co-owner of Brew & Brownie in York, which opened two months ago, said: "We were inspired by the kind of places we liked going to in London when we went to visit friends and relatives there was nothing really like that in York. | Gina Sleightholme, co-owner of Brew & Brownie in York, which opened two months ago, said: "We were inspired by the kind of places we liked going to in London when we went to visit friends and relatives there was nothing really like that in York. |
| "There are hundreds of traditional tea rooms for tourists but not something more attuned to younger people." | "There are hundreds of traditional tea rooms for tourists but not something more attuned to younger people." |
| She added that the cafe has been much busier than expected. | She added that the cafe has been much busier than expected. |
| Meanwhile, Dan Fellows, who has set up the first coffee shop for independent roasters Origin Coffee in Porthleven, Cornwall, said the tiny 10-seat establishment was benefiting from interest in its coffees from around the world and variety of brewing methods. | Meanwhile, Dan Fellows, who has set up the first coffee shop for independent roasters Origin Coffee in Porthleven, Cornwall, said the tiny 10-seat establishment was benefiting from interest in its coffees from around the world and variety of brewing methods. |
| "We've had really good feedback and it has been busy and it gives us an opportunity to see how our ideas about brewing coffee work directly with customers," he said. | "We've had really good feedback and it has been busy and it gives us an opportunity to see how our ideas about brewing coffee work directly with customers," he said. |
| Although specialist coffee bars are the fastest growing independent stores, Costa Coffee said in June it had opened 39 new shops in the UK in the first three months of the year and Starbucks has said it was committed to opening 300 UK shops by 2016. | Although specialist coffee bars are the fastest growing independent stores, Costa Coffee said in June it had opened 39 new shops in the UK in the first three months of the year and Starbucks has said it was committed to opening 300 UK shops by 2016. |
| For those entrepreneurs whose businesses really take off, coffee shops also offer a potential route to riches by building small chains that can catch the eye of major investors – as with Tesco's investment in Harris + Hoole, a UK chain founded by Australian siblings Nick, Andrew and Laura Tolley. | For those entrepreneurs whose businesses really take off, coffee shops also offer a potential route to riches by building small chains that can catch the eye of major investors – as with Tesco's investment in Harris + Hoole, a UK chain founded by Australian siblings Nick, Andrew and Laura Tolley. |
| "If you do get it right and expand like Harris + Hoole you can get on the radar of the Tescos of this world who want to buy into the excitement and loyalty of a new brand," said Hopkinson. | "If you do get it right and expand like Harris + Hoole you can get on the radar of the Tescos of this world who want to buy into the excitement and loyalty of a new brand," said Hopkinson. |
| But Harris + Hoole, which is now open in some branches of the UK's biggest supermarket, has attracted criticism from those who felt they were fooled into supping at what they believed to be an independent café, with different sensibilities to a large chain. | But Harris + Hoole, which is now open in some branches of the UK's biggest supermarket, has attracted criticism from those who felt they were fooled into supping at what they believed to be an independent café, with different sensibilities to a large chain. |
| • This article was corrected on 2 September |