Independent stores helping to breathe new life into the UK’s high streets

Although the impact of the Covid-19 pandemic and the subsequent consumer shift to e-commerce hit high street firms hard, along with the return of business rates, small retailers are inspiring a new dynamic in town centres across the country.

In the first half of 2021, the number of small new retailers opening their doors outweighed the number of closures for the first time since 2017. The surge of independent retailers comes at a time when the high streets are losing a growing number of chain stores. The nation posted a net loss of 5,251 chain outlets in the first six months of 2021, which is considerably higher than the pre-pandemic loss rates.

The research from Local Data Company found that demand for independent retailers has risen since consumers pivoted to buying locally, with white-collar workers working from home instead of their city centre offices. The types of independent firms experiencing the most significant growth in the first half of 2021 included local convenience stores, food retailers, takeaways and cafés.

According to the Local Data Company figures, the 10 fastest-growing independent retail segments were:

1. Convenience stores
2. Barbers
3. Fast food takeaways
4. Grocers
5. Takeaway food shops
6. Smartphone stores
7. Beauty salons
8. Pizza takeaways
9. Ice cream parlours
10. Independent restaurants and bars

Lucy Stainton, Commercial Director, Local Data Company, believes the past lockdowns have changed consumer perceptions. Stainton says many shoppers have grown increasingly conscious of the “provenance of products, sustainability and supporting local businesses”.

Brian Bickell, chief executive, Shaftesbury, an owner of a wide portfolio of cafés, restaurants and shops in London’s West End, believes the “formulaic shopping chains” are no longer capturing the imagination of shoppers when they can “do so much of that online”.

“A more personalised experience is what’s going to get people out to the high street,” added Mr Bickell.

“We’ve homogenised ourselves over the last 30 years with big brands and shops that are the same everywhere.

“It’s going quickly into reverse, and that re-setting of rents, particularly on provincial high streets, is making it possible.”

Mark Robinson, chair of the UK Government’s High Streets Task Force, believes the nation’s post-Covid high streets could become a “petri dish of entrepreneurialism” with more budding small business owners keen to “ride the crest of the wave of this communal feeling”.

Thinking of launching your own independent business and making a difference to redefining your local high street? Get in touch with us today to discuss your business plans and tax planning to provide solid foundations for your new small business.

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Date published 20 Sep 2021