Barrhead president Jacqueline Dobson urges agencies not to overlook the importance of the high street
Earlier this year, I was shocked to read the latest stats about empty units in Scotland, with one in six on the high street lying empty and around one in five vacant in shopping centres.
Research conducted by the Scottish Retail Consortium said the alarming vacancy rate in Scotland had made little progress in 2022 since 2021, despite Covid restrictions easing. The stats in Scotland were better than the average rate across the UK, which paints a dismal picture.
The same report said that Christmas spending in 2022 would seem to suggest consumers were favouring and returning to retail. So, rather than a lack of demand for retail services, it is clear there are other obstacles in the way.
It’s easy to become blinkered if you work in travel, with bookings booming and footfall seemingly higher than ever. There has also been plenty of recent investment and innovation. Just last month at Barrhead Travel, we launched our new flagship store in Glasgow’s city centre, which will be home to more than 35 travel specialists and a foreign exchange bureau across two floors.
Barrhead Travel isn’t alone in being committed to retail investment. We see an appetite throughout the wider industry, as well as in our Brilliant Travel division, which is taking on new members and helping existing ones expand their retail portfolios. But I can’t help feeling retail growth could, and should, be far more advanced if the conditions and support were more favourable.
Operating costs
The overheads involved in operating a successful retail premises are challenging enough for a large business – even harder for smaller retailers or those hoping to make the leap and go it alone. Whether on the high street, at retail parks or in shopping centres, retailers are bearing a higher burden than those choosing to operate from home or an office.
There are currently far too many barriers in place for businesses to accelerate expansion plans or open an inaugural store – irrespective of industry. They are being paralysed by high business rates and have little incentives or start-up funding. In particular, Scotland’s decision to provide no business rates relief this year – and next – to retail, leisure and hospitality businesses is clearly playing a part in Scotland’s sluggish high street recovery.
Travel may be driving much of the regeneration on high streets and retail communities across the UK, but I don’t believe the sector can unleash its post-pandemic potential to transform retail until governments look again at how operating on the high street can be achievable for all. The entire approach to encouraging entrepreneurship there simply needs to be reformed.
Economic hubs
The bottom line: we need all businesses in the retail, leisure and hospitality space to be thriving in order to create prosperous and sustainable local economies. Even if travel agents continue to ride the wave of demand and take the leap of faith to open stores, high streets and shopping centres still need investment from all sectors to create truly healthy economic hubs. A busy high street or shopping centre is good for everyone.
Having said all this, there are some fantastic advocacy projects across the country, predominantly driven by organisations such as local chambers of commerce. The Glasgow Chamber of Commerce, for example, is a remarkable force for good in the city and has been central to driving engagement between retailers, city council and government. The organisation has a clear strategy to support city centre growth and has been purposeful in taking action among stakeholders. I would urge any business leader, if they haven’t already done so, to reach out to see what opportunities or support might be available to engage on the future of retail.
It is unsustainable for the UK economy to dip any further below a one-in-six retail vacancy rate. I believe that with the right funding, resource and directed government attention, it would be possible to see a rise – rather than demise – of the high street over the next five years.
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