Discussion
Why are we constantly reminded that a lot of local shops are closing and unable to find tenants. My question is why is anyone surprised,I know we are in recession but no one ever mentions the the out of town retail parks.
Am I missing something?. I visit on business a local retail park on a regular basis and it is always busy. So it's not the shoppers that are not spending money it's the convenience factor this facility gives ie parking and product choice.
I know it's a shame but the only shops I can see remaining are the local mini corner shop for a bag of sugar and the hairdressers.
Am I missing something?. I visit on business a local retail park on a regular basis and it is always busy. So it's not the shoppers that are not spending money it's the convenience factor this facility gives ie parking and product choice.
I know it's a shame but the only shops I can see remaining are the local mini corner shop for a bag of sugar and the hairdressers.
Hmmm, bit simplistic. Retail parks have been around for years, yet the hi street is where the majority of smaller shops are. And they're closing at an alarming rate. So are pubs and cafes, and coffee shops. Nothing to do with retail parks, more to do with no customers all of a sudden.
Tony*T3 said:
Hmmm, bit simplistic. Retail parks have been around for years, yet the hi street is where the majority of smaller shops are. And they're closing at an alarming rate. So are pubs and cafes, and coffee shops. Nothing to do with retail parks, more to do with no customers all of a sudden.
Lack of cheap and convenient parking has become a big deal in the past year or so.Maybe the totally foolish assumption that the big stores are going to be cheaper, hence the exodus from honest small stores to the big 'cheaper' places. Price is key to a lot of people, nothing else seems to matter.
ETA I looked at the business rates in my town centre - a business would have to turn over some amount of money just to cover them. Have business rates inflated unrealistically like house prices?
ETA I looked at the business rates in my town centre - a business would have to turn over some amount of money just to cover them. Have business rates inflated unrealistically like house prices?
Edited by KANEIT on Wednesday 4th March 22:59
Tony*T3 said:
Hmmm, bit simplistic. Retail parks have been around for years, yet the hi street is where the majority of smaller shops are. And they're closing at an alarming rate. So are pubs and cafes, and coffee shops. Nothing to do with retail parks, more to do with no customers all of a sudden.
Nothing to do with retail parks?. That's just the point the high street shops have gone because they can't compete with the big out of towners. It's about convenience, footfall to other similar business's, choice. There may have been out of town stores for years but all of a sudden there are lots of them opening . We either go to Tesco's Asda, for food or to a retail park for just about everything else. The high street is both short on choice and lacking convenience.I know of a few people who had to close up their retail shops last year and the year previous. Biggest reasons were excruciating rates from the councils and in town parking becoming a huge issue. The rental from the landlords wasn't actually that bad but councils have a rather myopic view on taxation and collection.
Mr Fenix said:
I know of a few people who had to close up their retail shops last year and the year previous. Biggest reasons were excruciating rates from the councils and in town parking becoming a huge issue. The rental from the landlords wasn't actually that bad but councils have a rather myopic view on taxation and collection.
Because most of the people running them don't have a clue about the real world of business.I live in a large town of about 15,000 people, the closest retail park is about 10 miles away or a 20 minute drive, you can pretty much get anything you want there. Electronics, clothing, food and most specialised goods. Our high street has about 50 shop spaces and while we have useful shops like a bakers, florist ex, we also have 5 charity shops, 3 chemists and 3 opticians all within about 100 feet of each other. Now all the oldies are dying off and the generation that should be taking their place have become used to going elsewhere for shopping and services.
Oh and parking is no problem anymore because no one goes into the town centre.
Oh and parking is no problem anymore because no one goes into the town centre.
Mr Fenix said:
I know of a few people who had to close up their retail shops last year and the year previous. Biggest reasons were excruciating rates from the councils and in town parking becoming a huge issue. The rental from the landlords wasn't actually that bad but councils have a rather myopic view on taxation and collection.
Actually, it's not the councils' fault. The problem is that the UBR is set by central government, and local councils collect it on central government's behalf.Last time I looked the UBR is something like 43% of rateable value, and rateable value is supposed to be the same as one year's market rent. As and when market rents come down then so should the RV so then the rates payable.
Thing is, it takes landlords a while to get their heads round the idea of their property being worth less rent that it used to be, and when they own the upper parts as well, such as in a shop on the high street of a market town, then that building will be worth LOTS more as a private residence.
KANEIT said:
ETA I looked at the business rates in my town centre - a business would have to turn over some amount of money just to cover them. Have business rates inflated unrealistically like house prices?
If only business rates were the problem! Business rates are a red herring, yes they exist, yes they have to be paid, but a business should have accounted for them and in many cases they are too low!Business rates are calculated by taking the rateable value applying the multiplier set by the government to it. The multiplier increases annually by the amount of inlation in Sept the previous year, which is an issue this year, but basically means business rates are going up about 5% this year. The local authority collect the rates on behalf of the Treasurt and send them to the Treasury.
The rateable value is based on rental values as at 1 April 2003, with a revaluation next year to rental values as at 1 April 2008. In our local town there are a lot of empty shops but the historic rents range from £10,000 - £25,000pa and the rateable values range from £5,000-£10,000, giving rates payable of £1,250 to £5,000 (and this might be discounted by upto 50% if they are a small businees).
However if you assume you have a shop paying a rent of £20,000 you are going to take at least £250,000pa in turnover to make a living, let alone a decent profit!
If landlords charged less rent the rates would come down but the most important issue is for people to actually use their local shops! In a town like ours there is a population of 25,000 if they just spent an extra £1 a week each in their indpendent shops that would increase turnover by £1.3 million!
I wonder if there is also a knock on effect from the general lawlessness and disorder that blights many small towns in the evenings and weekends?
Once a place is associated in the mind as being unsafe or unpleasant, it can affect ones decision to visit, even during times of total safety.
Just a thought....
Once a place is associated in the mind as being unsafe or unpleasant, it can affect ones decision to visit, even during times of total safety.
Just a thought....
Hedders said:
Jsys said:
Oh and parking is no problem anymore because no one goes into the town centre.
There maybe available spaces but i bet there are still traffic wardens pouncing on anyone that spends an extra two minutes supporting the local business's 
as an aside a few years ago when sunday opening first got going , everyone was encouraged to come into (cheltenham) and shop , first thing the council did was............charge for parking where before it was free on sundays, way to go !
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