Scott Wright: Is shopping mall landmark a reason to celebrate?

Figures from the Scottish Retail Consortium show retail sales in Scotland have “flatlined” this year, while a survey from its parent group, the British Retail Consortium, reveals today that consumers’ expectations of their personal finance situations, state of the economy and their personal savings for the next three months have worsened. Evidence such as this only underlines the ongoing challenges the industry faces as the UK economy struggles to emerge from the doldrums.

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Yet, while all parts of the retail industry are finding the going tough, there seems little doubt that the out-of-town destinations are faring better than traditional high street retailing locations across Scotland, the decline of which has been painful to witness – especially when compared with how buoyant places such as Aberdeen’s Union Street once were.

Nowhere is the decline more evident than in Glasgow city centre, where the struggles of Sauchiehall Street – once a bustling retail thoroughfare that was home to the biggest names in the industry – have been well-documented.

Shoe retailer Deichmann recently joined the exodus from the street as ongoing works to improve the public realm continue to disrupt trade and impede shoppers. The Deichmann closure has created another large retail vacancy on the street, deepening the sense of depression which has set in following the departure of major players such as Marks & Spencer, Watt Brothers and BHS.

Glasgow City Council said it expects the “vast majority” of the work on Sauchiehall Street Precinct to be completed before Christmas, and recently announced that it has made grants totalling £400,000 available to help businesses fill vacant units and improve the look and feel of the area. But while this is commendable, it is hard to escape the conclusion that much bolder action is required to truly revive the fortunes of the street.

How to address the demise of Scotland’s town and city centres has been the source of debate for some years. And indeed many interesting suggestions have emerged concerning how to reverse the decline, including measures contained in a 2021 report, ‘A New Future for Scotland’s Towns’, authored by the esteemed retail academic professor Leigh Sparks.

(Image: Newsquest) Works are continuing to take place on Glasgow’s Sauchiehall Street

Mr Sparks was in no doubt that the impact of the out-of-town centres has to be addressed, when asked whether the new UK Government offered any grounds for encouragement that its proposed policies will help the sector. “If we want to be serious about town centres then out-of-town retailers owning up to the damage they have caused… would be a good start,” he told The Herald.

“Why should governments support them? I see the constant case for let us do it all cheaper, but I don’t see anything from that lobby about what societal (as opposed to corporate) benefits such current support (or indeed further support) would bring. More of the same, but cheaper for the big boys so we can make more money, does not seem to me to be especially convincing at a time of central and local (think rates return) government finance constraints.”

Asked what he hopes the forthcoming Budget on October 30 will entail from a retail perspective, Mr Sparks said: “No knee-jerk reactions to those that shout the loudest, the beginnings of more support for small, local and town centre retailers and the balancing of out-of-town advantages with town centre disadvantages in costs terms, without killing the finances of local authorities.

“More support for town centres that is long term and covers capital and revenue for community buyouts. And in a macro sense a period of stability that encourages consumers to spend and businesses to invest more. And an overt statement that the ‘dash for growth’ does not come at the cost of the environment and town centres.”

Yet, while it looks like the out-of-town centres are performing better than the high streets, their tenants continue to face a heavy cost and regulatory burden, according to the Scottish Retail Consortium, which generally represents larger multiple players.

SRC director David Lonsdale observed that the business rate in Scotland is now at a 25-year high, with the bill for retailers having increased by £31 million in April. He also raised the prospect of a new business rates surtax for larger grocery stores being introduced.

“That said, we’re hopeful that consumer spending will tick up over the coming months as shoppers benefit from falling shop prices and the continued growth in real wages, and as part of the build-up to Christmas,” he told The Herald. “This so-called golden quarter is when many non-food retailers need good festive trading to tide them over the leaner months early in the new year.”

Mr Lonsdale expressed the view that the new UK Government had “made a positive start with their focus on growing the economy”, noting that it has “clearly listened with their proposals to reform the apprenticeship levy, reform business rates, and introduce better legal protections for shop workers from abuse and violence from customers”.

However, he added that there is “at this early stage, at least, little sense of any lessening of statutory costs affecting the retail industry, indeed the recent King’s Speech contained several measures likely to increase business costs”.

As for measures to improve Scotland’s depressed town and city centres, Mr Lonsdale said while there is “goodwill” to improve the “vitality” of our urban areas, and welcomed some initiatives, he questioned the approach currently being taken by government on both sides of the Border.

“What is lacking is coherent policymaking,” he said. “Coherent policymaking would make it easier and less costly for retailers and other firms to operate in town and city centre locations.”

On a more upbeat note, however, Mr Sparks said the success of some small towns and cities around the UK shows that it is possible for more of the country’s traditional urban centres to reclaim their vibrancy.

“Learn from Dumfries, Stockton, Preston and make the system simpler, fairer and quicker to do great things in towns,” he said. “Focus on footfall and especially living in town centres.”