This time last year, millions of tourists would be flocking to the Carnaby Street area, a veritable honeypot in London’s West End retailing epicentre. Added to this, the streets would be buzzing with the thousands of workers in the multifarious businesses in this trendy part of the capital. Not so this year. You can hear a pin drop it is so quiet and can have the pavements to yourself.
“It’s pants out there,” exclaimed a frustrated Brent Milburn, who has owned Newframes, a greeting card and framing shop located very close to Carnaby Street for the last 20 years, but is now having to cope with turnover that is 93% down on what it should be as there is no customer traffic, with the lack of tourists (both domestic and overseas) and people working from home.
Brent felt compelled to contact PG Buzz to amplify Cards Galore’s co-owner Rumit Shah’s plea on BBC News for customers to return. (https://www.pgbuzz.net/cards-galore-owners-send-out-a-cry-for-help-on-the-bbc-2/)
Even on so-called ‘Super Saturday’ (July 4 when pubs and restaurants could re-open), footfall analysts Springboard tracked how there were 75% fewer people around in the centre of London with other cities also down by 67%.
While Brent is happy for his indie retail counterparts located in city suburbs, provincial market towns or areas supported by a local community who are managing to adapt to the new normal, for those like him in city centres he says it is dire and feels something drastic needs to be done to support them.
“We are experiencing the same as Rumit (Cards Galore). Our turnover is 93% down. The footfall is not there in Central London and probably it’s the same for other city centre locations. Many stores that did open on June 15 have now closed, placing notices on doors saying they will not open until footfall returns,” Brent told PG Buzz. “I am really not sure what can be done to encourage shoppers who are certainly reluctant to use public transport and are now worried about losing their jobs.”
To Brent’s mind, the current situation with Covid-19 has “highlighted many problems in the retail landscape and in society as a whole.”
Here, he shares part of his manifesto for change:
“For too long the rents, rates have forced changes on the way we shop.
- Rates, the system is outdated and unfair. I believe all commercial premises (retail, offices, warehouses, industrial) should have a standard rate per square foot/metre, including the same rate for the whole premises, without internal zones. This would be easier to calculate and would take away the bias in favour of online businesses. The rate could even be set by the local council. Each business location should also be allowed to vote in local elections to give us a voice on policy.
- Large companies need to stop paying premium rents to obtain ‘flagship stores’ which distorts the true value of the rents achievable in an area, as the landlord uses this higher rate to push the other rents up to the same level. This has served to encourage out of town shopping and retail parks.
- Out of town shopping centres should not be allowed in the future (Bluewater etc) to bring retailing back into towns and cities.
- No new retail parks should be allowed to be developed. And those that do exist should be encouraged to change use to housing.
- Ni and employers’ NI should be scrapped and included in PAYE. Income tax should be based purely on income, getting rid of all the loopholes, tax concessions etc. Keep it simple, otherwise people will always find a way round not paying.
- VAT should be due monthly as should rents.
- Everything should be done to encourage the return and use of traditional high street shopping areas.”
Brent, is waiting to see how landlords deal with the current situation regarding retail and office rental costs. “Certainly in central city locations I do not expect a return to office environments as in the past, with more home working. Therefore, current rents are not sustainable for businesses.”
In the meantime, Brent’s added wish is for businesses with a rateable value over £50K to also receive a grant
As he sees it: “Life will never be the same again and as a retailer we need to adapt. I really hope our landlord reduces our rent permanently to enable us to be viable. In the mean time we looking to see what opportunities there are in other locations. Onwards…and hopefully, upwards!”
Changing retail hotspots
Leading general retail media, Retail Week recently shared the findings of the latest Vitality Index compiled by Harper Dennis Hobbs that ranks the health of 1,000 retail areas, which shows the gains some suburbs and provincial towns have made over major city centres during this Covid-19 period.
| Harper Dennis Hobbs Post-Covid Vitality Index | ||
| Post-Covid position | Retail centre | 2019 Rank |
| 1 | Wimbledon Village | 7 |
| 2 | Marlborough | 10 |
| 3 | Reigate | 12 |
| 4 | Berkhamsted | 14 |
| 5 | Cobham | 17 |
| 6 | Sherborne | 26 |
| 7 | Bristol – Clifton | 27 |
| 8 | Ilkley | 29 |
| 9 | Sevenoaks | 30 |
| 10 | Marlow | 36 |
| 11 | Muswell Hill | 38 |
| 12 | Tenterden | 39 |
| 13 | Hampstead | 43 |
| 14 | St Ives (Cornwall) | 45 |
| 15 | Holborn – The Brunswick | 52 |
| 16 | West Hampstead | 56 |
| 17 | Blackheath (London) | 59 |
| 18 | East Sheen | 62 |
| 19 | Beaconsfield | 64 |
| 20 | Yarm | 65 |
| 21 | Lymington | 73 |
| 22 | St Andrews | 76 |
| 23 | Seaton | 77 |
| 24 | Barnes | 78 |
| 25 | Petersfield | 79 |
| 26 | Ringwood | 90 |
| 27 | Stamford | 91 |
| 28 | Wimborne Minster | 99 |
| 29 | Knutsford | 104 |
| 30 | Bowness-on-Windermere | 105 |
| 31 | Peebles | 106 |
| 32 | Sheffield – Ecclesall Road | 108 |
| 33 | Totnes | 111 |
| 34 | Keswick | 114 |
| 35 | Hoddesdon | 115 |
| 36 | Holt | 116 |
| 37 | Clitheroe | 118 |
| 38 | Edinburgh – Morningside | 122 |
| 39 | Dartmouth | 125 |
| 40 | West Bridgford | 126 |
| 41 | South Woodford | 129 |
| 42 | Saffron Walden | 132 |
| 43 | Harpenden | 139 |
| 44 | Heswall | 140 |
| 45 | Monmouth | 141 |
| 46 | Didsbury | 144 |
| 47 | Pocklington | 145 |
| 48 | Fulham – High Street | 146 |
| 49 | Great Malvern | 147 |
| 50 | Pinner | 148 |
(Source: Retail Week)
Top: Newframes’ Brent Milburn.
