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'Thousands' of high street retailers closing annually

As nearly 3,000 shops shut on British high streets in the first half of this year and 61% of us Brits fear high street will disappear for good.

Unique data has revealed that in the first six months of the year nearly 3,000 shops have closed on UK high streets. It therefore comes as no surprise that 61% of Brits are worried that the high street will disappear completely over the next ten years, according to research by KIS Finance.

From surveying 1,000 consumers in the UK, KIS unearthed startling findings including:

•61% of Brits are worried the high street will vanish entirely over the next ten years due to the ever increasing number of big-name store closures.

•Fashion, food, beverage and value brands are predicted to be the biggest victims of the high street due to online competition.

•Convenience is key factor that affects our shopping habits - if local high streets had free parking and easy accessibility, consumers would be more likely to shop in-store.

•Northern cities and Scotland have been worst hit by store closures so far, but people anticipate many more to come.

By partnering with James Child, Retail Analyst at EG, we can see there doesn’t seem to be any sign of these closures letting up, he says: “It is quite likely there will be a continuation, if not an increase of the negative headlines in retail.

"The raft of CVA’s and administrations in the sector has culminated in an expected 1,600 store closures across the UK, with over 18 million square foot of prime retail real estate vacated. When we break down the events of 2018 there are some trends which appear to be continuing into 2019 – due to fragile trading conditions and economic uncertainty.

There are certain sub-sectors that will face more pressure than others. The fallout from department stores will continue at pace, following the problems with House of Fraser last year, and now with the future of Debenhams at risk. Food and beverage, value and fashion brands will come under more strain as over stretched markets begin to weed out weaker offers as retail Darwinism bites.”

So what would bring people back to the high street?

When asked what would tempt them back to the great British high street, the top answers from Brits were:

•More staff to ensure the experience is quicker (41%)

•Clearer stock check in store (34%)

•24-hour service so that you can shop at any time (27%)

•Self-checkout service to avoid queues (26%)

So, how will the high street look in ten years?

After asking consumers what they think the high street will look like in ten years, it seems consumers are worried independent stores won’t exist. The list below runs from most likely to least likely.

1.Restaurants
2.Coffee shops
3.Second-hand shops
4.Bars
5.Fast food restaurants
6.Retails chains e.g. department stores
7.Clubs
8.Cinemas
9.Banks
10.Travel agents
11.Independent retailers

Which parts of the UK have been hardest hit?

As part of its research, KIS mapped out which cities had been hit the hardest by the major store closures of the last year, including those announced already in 2019 such as M&S, Patisserie Valerie and Debenhams. This revealed northern cities such as Leeds and Glasgow had been hit far harder than their southern counterparts.

The top cities impacted were:

1.Leeds
2.Glasgow
3.Aberdeen
4.Bradford
5.Cardiff
6.Doncaster
7.Leicester
8.Manchester

Holly Andrews, Managing Director at KIS Finance says: “With store closures flooding our newsfeeds recently, we were interested to find out what the future holds for the high street and how consumers’ shopping habits might affect retailers’ footfall. It is obvious from our research that people do still like going into store to shop, but it just isn’t as accessible as online shopping is.

"To save the high street many retailers need to ensure that they are thinking innovatively about how to draw customers in with clearer in-store stock checks, more staff and extended hours during busy periods. The reason why so many retailers are struggling with their stores is because consumer shopping habits are changing and the high street needs to change with it, creating a more community led atmosphere with more accessibility and variety for everyone.”

Full report: https://www.kisbridgingloans.co.uk/finance-news/the-future-of-the-high-street/

However, a strawpoll of high street retailers undertaken by That's Business indicates that many small retailers are being forced to close by a deadly combination of high rents and even higher business rates.

And the latter is an issue for local and central government to address as a matter or urgency.

Laduma works with tech giant Microsoft to create immersive experiences.

Are you chasing customers away with noise?

I recently visited a lovely Mexican restaurant. The food was good, but the ambiance of the place was spoilt by music that was played at an ear splitting volume. Conversation, unless undertaken at a throat ripping yell, was not possible.

And later I visited a fashion store which was playing the kind of music one would find in a nightclub at a similar volume that one would find in a nightclub. I left pretty quickly without making a purchase.

For some people, older people with age related hearing problems, people who can't see and who need aural cues in order to make their way around, plus people who are hard of hearing and those who are on the Autistic Spectrum, loud music can be a real problem.

One UK supermarket, Morrisons, has acknowledged that loud noises can be a problem and has taken some steps to address this issue.

Morrisons has introduced a quieter hour in all of its stores for customers who could benefit from calmer, quieter shopping.

Aimed at helping customers who struggle with music and the other noise associated with supermarket shopping, it takes place every Saturday morning from 9am until 10am in all of its 493 stores.

The Quieter Hour initiative was designed and implemented with the backing of the National Autistic Society. Many people who are autistic or those with autistic children can find shopping in a supermarket an anxious experience. (EDITOR: Even some people who aren't autistic, too.)

Morrisons undertook a test in three of its stores - Lincoln, Woking and Gainsborough, to establish  what improvements it could make and find a convenient time each week for the 'Quieter Hour' to take place.

Listening to customers they found one in five had a friend or family member with autism and many appreciated the option to shop at that time on a Saturday.

During Quieter Hours stores will:

Dim the lights
Turn music and radio off
Avoid making tannoy announcements
Reduce movement of trolleys and baskets
Turn checkout beeps and other electrical noises down
Place a poster outside to tell customers it's Quieter Hour

Morrisons will also work to improve awareness amongst colleagues of the issues autistic customers face in store.

Daniel Cadey, from the National Autistic Society said: "Around 700,000 people are on the autism spectrum in the UK. This means they see, hear and feel the world differently to other people, often in a more intense way. Morrisons' 'Quieter Hour' is a step in the right direction for autistic people who find supermarket shopping a real struggle."

Angela Gray, Morrisons Community Champion at Woking added: "I was involved in the initial trial as my son is autistic and we found these changes made a real difference. The trial showed there's a need for a quieter shopping experience for some customers."

Let's hope that more supermarkets and other retailers follow the example of Morrisons. Hopefully eventually shoppers can enjoy quiet days with no music?

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How to sabotage your own business, an update

It's with some regret that I have to report that the coffee shop-cum-art gallery that I mentioned here https://thats-business.blogspot.com/2018/10/how-to-sabotage-your-own-business.html has finally closed down for good. Which was inevitable, really, given the circumstances.

When a business shows such disrespect to its customers that it treats them as idiots and fools to be fleeced, the inevitable result is that, unless the business can take urgent steps to address the issues and redress the problems it has caused itself, it will lose customers and will either be taken over or have to close down.

My wife and I are keen arts and craft exponents and had wanted to place some of our art pieces in the art gallery section, as they sold art works and craft pieces for local artists on a commission basis.

But as my wife pointed out to me: "If we couldn't trust them not to rip us off on things like coffee and cake, could we really have trusted them with art pieces?"

I agreed with my wife that it would be difficult to trust someone with such a disrespect for their customers.