Published on December 10, 2013
What’s happening on the High Street? 27 November 2013 © 2013 Deloitte LLP. All rights reserved.
Place North West – Future of town centres Content • The future for retail • A more ‘agile’ high street • Going a step further • Conclusions © 2013 Deloitte LLP. All rights reserved.
The future for retail Total store numbers will fall by 22% between now and 2018 – from 280,000 to 220,000 There will be a further 316,000 job losses nationally A further 164 major or medium sized businesses will go into administration Online retail sales will climb from 12.7% to 21.5% by 2018 59% of town centres will be ‘sustainable’ (but what about the other 41%?) © 2013 Deloitte LLP. All rights reserved.
Evolution of retail & technology Technology adoption: number of days to reach 1MM units sold1 ~360 ~300 Technology adoption drivers Increased mobility ~180 ~75 ~45 ~30 ~10 6 hours 2007 2010 2011 2013 400 + 300 + Enhanced usability Days Evolved connectivity 200 100 + 0 Lower prices 2002 2002 2007 2007 iPhone 5 sold 2 million units within the first 24 hours of pre-orders in Sept 2012 © 2013 Deloitte LLP. All rights reserved.
Changing patterns of activity Net store openings and closures by location (% net change) © 2013 Deloitte LLP. All rights reserved.
Changing patterns of activity Sector growth 2010 - 2015 Source: Verdict © 2013 Deloitte LLP. All rights reserved.
Where is the growth going to come from? Net store openings and closures by type (% net change) © 2013 Deloitte LLP. All rights reserved.
Adapting to demand Consumers’ attitudes to high-street management In your view, who should decide which shops and services your local ‘high street’ includes? © 2013 Deloitte LLP. All rights reserved.
A more ‘agile’ high street • Different use of space – planning implications? • More flexible leases • Rewriting business rates + changing the tax system • New sources of funding • Engaging local trade • New approaches to car parking • The role of local authorities © 2013 Deloitte LLP. All rights reserved.
Greater flexibility through planning Past Present (30 May 2013) Permitted change from A2, A3, A4, A5 to A1 Flexible permitted change from A1, Change from A1, A2 to A2, A3, A4, A5, B1, D1, D2 to A1, C3 residential A2, A3, B1 for up to two years (maximum of 150 sq m) (Maximum of 150 sq m) No permitted change from A1 Future? Change from A1 to banks and building societies Betting shops and payday loan shops moved from A2 to sui generis © 2013 Deloitte LLP. All rights reserved.
More flexible formats • ‘Click & Collect’ will become more popular • Need for new layouts and configuration of space • Temporary facilities + pop up shops © 2013 Deloitte LLP. All rights reserved.
Going a step further Town Centre Investment Zones © 2013 Deloitte LLP. All rights reserved.
Going a step further Funding streams established to turn shops into houses Encouragement for entrepreneurs Impact of public sector investment (health, education etc.) © 2013 Deloitte LLP. All rights reserved.
Conclusions This is not evolution – it is more of a revolution: • Some towns will not survive – and need to change course • Rules and regulations need to allow change to occur – not stand in its way • There is room for everybody – but maybe the best new ideas will come from entrepreneurial businesses • Local authorities will have to lead the way – taking ‘control’ of their town centres © 2013 Deloitte LLP. All rights reserved.
What’s happening on the High Street? Simon Bedford Partner Deloitte Real Estate 2 Hardman Street Manchester M60 2AT Tel/Direct: +44 (0)161 455 6484 Mobile +44(0)7717 894598 email@example.com www.deloitterealestate.co.uk © 2013 Deloitte LLP. All rights reserved.
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