Independent shops are helping to regenerate high streets in Wales claims a new study – taking over space left as national chains abandon town centres.
New research commissioned by Visa shows that, across the UK, 34,511 independent high street shops opened for business last year, up 4.5% on 2017 – despite the challenging retail environment.
It comes as there have been a raft of closures from the big chains with one retail expert saying this had freed up space and reduced rents for local businesses.
But the Federation of Small Businesses said the figures made surprising reading and warned that retail remained the least confident of any sector in the UK economy.
Visa said that its research found that 72% of small high street businesses surveyed in Wales were optimistic about the future of their high street, up from 54% 12 months ago and that four in 10 wanted to open an additional site.
Of the shoppers surveyed, local high streets are still the preferred destination for shopping (32%) for Welsh people, beating shopping centres (25%) and online shopping (22%) – showing that the public still want their town centres to thrive.
Estate agent Dafydd Hardy, whose firm covers Anglesey, Gwynedd and Conwy, says the local situation reflects what Visa are claiming.
He said: “We’ve definitely seen this in Bangor and Caernarfon over the past 12 months, with our commercial department helping many independent businesses secure premises.
“The high street is changing and many of the larger national chains are leaving with new or expanding independent businesses filling the void.
“It’s great to see so many local businesses opening, or expanding, which also brings jobs to the local community.
“However, high business rates are still a barrier to many and are the reason behind a number of units still being unoccupied on our high streets. More needs to be done to try and find a solution to this problem which works for the businesses, landlords and local councils.”
Edward Hiller, managing director of Llandudno landowner Mostyn Estates, said: “The trend is where there are gaps left by the big chain multiples these are opportunities available for independent businesses that would not have been there previously.
“The pricing has changed – although the business rates haven’t – to reflect the change in demand and this means more power to the occupier and less to the landlord, although varies from location to
location.”
He said the smaller footfall of many Welsh towns had meant they were often the first targets when multiples were closing sites.
He said: “Wales has more smaller towns with less draw and often these are the first to go. This is why there are more independent retailers in Wales and why this sector is growing.
“For towns it is all about the right mix, brands like Primark are still a draw to bring people in but it’s good to have a mix then of multiples and independent retail stores.”
Mike Learmond, senior development manager for the Federation of Small Businesses (FSB), said: “Claims that four in 10 independent retailers in Wales are planning to open new premises within 12 months will make surprising reading for anyone visiting our beleaguered high streets in North Wales.
“Our own research via our quarterly Small Business Index paints a very different picture with small wholesale and retail trade businesses the least confident of the sectors.
“These businesses saw a 2.6 point increase in their confidence reading from – 44.5 in Q4 2018 to – 41.9, but are now comfortably the least confident by sector after a major improvement among accommodation and food services firms.
“The traditional high street is changing.
“Small retailers, in particular, are facing a perfect storm of spiralling business rates and ever-increasing rents.
“On top of this, high parking charges, poor infrastructure and the loss of vital banking services have added to the woes of small retail businesses.
“We need to help raise the confidence of smaller retailers for real by introducing a properly funded conversation on the future of Welsh towns and how the high street can best be assisted to survive and prosper.”
Llinos Griffiths, who has run Siop Mirsi in Pwllheli for five years, expanded her business with a new store in Caernarfon after spotting the town was doing well.
She said it was crucial that councils and government continue to support town centres.
She said: “I saw that Caernarfon was on the up with a lot of investment in the town.
“In the town there are a lot of independent stores and I think that is what now attracts people to towns, it is about the shopping experience, people come for food and to shop.
“The council needs to keep supporting small businesses because there is nothing worse than a dead high street.
“We have had rates relief this year and it has been a big help to us, support like this can make a big difference to small businesses.”
Clogau MD Ben Roberts said: “I’m delighted to see these results regarding the increase in confidence for the high street retail in Wales.
“Not only is it in line with my own plans for Clogau mono-brand stores, it’s reflective of the strength of the brand with our highly valued network of retail partners.”
- The research was unveiled as Visa launched the Great British High Street Awards 2019. For more information about the awards visit www.thegreatbritishhighstreet.co.uk
