Is Retail Dead Now?

[Porky]

I can secure a Unit in my local town centre fairly cheep. I could probably find a couple of part timers to cover BUT when I consider everything I just can't come up with a convincing busines plan, no matter how I cut it.
It just feels like retail is well and truly dead, deader than the Norwegion Blue Parrot - only shops trading near me being cafes (less busy as everyone WFH), charity shops, betting shops and fast food.
I think what chucks my business plan out of the window is that I don't want a lifestyle, I want a side business to add to my income and I can't find anything in retail that would do that.
Interested in others thoughts - does everyone else feel the same?

 

[thetiger2015]

It almost seems like there's a concerted effort to make high street retail fail?

Our town would have a relatively successful centre but the parking charges are constantly increasing (it's £3 per hour and due to increase again soon), parking spaces are being reduced and bus services are being cut. Add to that, the recent changes to business rates, making it even more expensive...then there's the employment costs, forever going up and up!

We too, had looked at opening something around October time but the math just doesn't work. I think a lot of the shops on the high street are only there because they're still in lease, once that ends, they're gone, further reducing the footfall to neighbouring retailers.

I've also noticed a big push in converting retail shops in to residential over the last 4 or 5 years. The town centres are shrinking, further inflating rental prices on the remaining units.

It didn't have to be like this but it seems as though that's the plan, as every high street is being battered with the same issues.

 

[HFE Signs]

It isn't what it once was but if you have the right product in the right location it can be very good, the difference these days is you have to get it spot on, it will either do very well or fail, not much middle ground. Homework and market research is vital

 

[Mark T Jones]

It will vary hugely from town to town (in some cases, from area to area within a town)

Not least, whether the council has any type of coherent plan / identity for the town

Forward-thinking councils are working hard on this, whether it's food, arts, fashion or whatever.

Though in reality, retail as a side-hustle will never be a great idea.

 

[Newchodge]

Retail covers a huge range. Tesco are doing fine. Online retail seems to be doing OK. I would suggest that bricks and mortar retail only works if it supplies something better provided in person than on line. And there isn't much of that!

 

[ecommerce84]

Our local High Street is pretty busy and as I live adjacent I frequent it most days for something or other.

But looking at the mix of shops it’s either charity shops with mostly volunteers, chains or owner ran businesses where the profits are their wage.

I think you’d struggle to run a single fully staffed shop and make an income for the owner that was worthwhile.

I don’t think High Streets will ever go away though, we’ve seen them change from shopping destinations towards leisure and service destinations with shops and I think this will continue into the future.

 

[WaveJumper]

Very difficult for an independent retailer to succeed on the high street for many of the reasons all ready given and as a side hustle I would think its defiantly not worth the gamble. Still have my ear to the ground with several retailer chains and you can expect to see quite a few shedding units this year, 2024 has not been good and retailers are great at just drawing a line under the worst performing on a list and getting rid.

Ok some towns ill pick a couple off the top of my head, Cambridge, York which have a real strong "destination" draw will probably always do ok so again as mentioned pick your town, your location within with care, unique product or service and you might just survive but my gut feeling is it won't be an easy ride.

Commercial property owners / funds for years now have been working in hand with councils to convert / add residential to existing property portfolios it was seen as the way to add value to your portfolio and councils loved it they felt it brought life to the town centre, helped the evening economy and even helped keep crime down (we won't go there)

The dream being more restaurants, coffee shops, attracting healthcare ie dentists, doctors etc into the high streets, I have to say I struggle to think were this has actually become successful.

Having been in the "game" I always struggled to see how local councils thought that charging the earth for car parking or even charging at all made any sense other. I remember people in a certain town going mad when Sunday charging was introduced, footfall went down and the neighbouring towns went up people would sooner drive 15 miles rather than pay £1.20 an hour to park even though it probably cost them more in petrol.

And thats the probably the biggest issue now, why would I even get my car out drive into town pay £3.50 to park find the shop hadn't actually got what I wanted when one click on Amazon this evening brings me my product by 10.00 the next morning.

Sad and we here in the Wavejumper household were discussing this last night, myself, my sons their families even my wife who was never PC friendly (she never wanted an iPad and now its the best thing since sliced bread) never once left the house to buy a Christmas present. The only establishments the 'Ladies of the clan' seemed to frequent were the garden centres, as apparently I am told by she who must be obeyed you have to change the colour of your baubles to keep up with the latest trend.

Pretty glad I moved on from the retail and Commercial property game but as you may tell from the length of this the markets are pretty quiet for a Friday.

Happy New Year everyone

 

[Ozzy]

Interested in others thoughts - does everyone else feel the same?

I jumped in the thread to give my thoughts only to find my thoughts are the same as others.

we’ve seen them change from shopping destinations towards leisure and service destinations with shops and I think this will continue into the future.

I agree that the High Street in the traditional sense is long gone, and as others have already said the shift is changing towards charity and pound shops. Northampton town centre where I live is like this, even the market square the town was famous for is dwindling away sadly with over half the shops boarded up along the front.

The exception is the 'destination' locations as mentioned already, where tourism is keeping those High Street's going.

It doesn't have to be this way if a local authority took a longer term investment view, but they don't. It's all about what tree and fountain can be knocked up quickly to pretend to show willingness but achieve nothing. So with things as they are and how they're heading traditional retail for the future is drop shipping, same day delivery from a warehouse in a business park on the outskirts of towns.

 

[Porky]

May I thank everyone that responded here. It illustrates the benefits of joining UKBF and sharing views.

Have to say I agree on all points highlighted. I am always mindful of biased confirmation in forums but I think the best times of the high street are well behind us. Shame

At least all I have wasted is a few days on a business plan not fit for purpose

Thanks again

 

[Mister B]

Well, from my perspective, retail in it's simplest form is well and truly dead, but if you find a niche market and make your store a true destination store, then it still can work. Back in the early nineties I ran an outdoor store and it was perfectly normal to see people travel 100+ miles to shop with us. Even with the advent of the internet, certain products thrive in a retail environment. So, I think that traditional high street retailing is dead but niche secondary location retailing, combined with an internet site, has loads of potential.

Definitely not a side hustle job though, it would take full time commitment. And money.

 

[Chris Ashdown]

I blame the councils who are still poring money into plans to revive the towns and cannot understand the battle is lost, the past was the past and the present is either major massive stores or online and some a combination of the two
Also women are doing there bast to kill online shops with the stupid amounts of returns killing the retailers profits and increasing staff numbers to handle the returns

 

[ZipserSir]

Hi, slightly different perspective here, but I happen to know that many charity shops are doing really well. The demand for the shopping experience is still there - its how you meet that demand that matters. Best of luck whatever you decide to do.

 

[tony84]

I think it really depends.
I live in a "village" (its not really a village, its a town between manchester and cheshire), and the locals are all very much invested in keeping it active and supporting it.

We have events throughout the year where they close the roads and we have artisan markets, the local businesses try and support one another and so on. Our local high street is going nowhere anytime soon. That being said I do know some of the businesses are struggling but people are working together to try and make it work.

Anywhere else, unless you own a vape shop, barbers, chicken shop or off license and/or are laundering money, the high street is dead.

I went to argos on new years day for the first time in years, and that was only because I could not get it from amazon until today (it was a birthday present I needed yesterday).

 

[Lucan Unlordly]

From my perspective too many bricks and mortar retailers are trying to have their cake and eat it.

A new Wickes store filled a void on our side of town. There website says 'in stock', yet what it actually means is in stock and available to collect next day. Screwfix is the same for many products. Last night I went to B&M looking to buy some batteries for a decent price. They had a rack full of AA's and AAA's but no Button type. NEXT stock 38R jeans/trousers but 38L in minimal, often zero quantities. M&S no longer sell a size 12 shoe in store or online.

I don't mind paying a little extra to try something on or for parking to do so, but I'm not going to visit a retailer twice or become a loyal customer if 9 times out of 10 they hold a limited range or can't supply on demand.

 

[Jprandss]

Looks like you have the information needed to form your decision, but just my input-

Destination businesses in destination towns and cities are doing fine, with many businesses doing very well.
These would be seaside towns, historic cities such as York, Lincoln, Chester etc, and wealthy/touristy towns such as Frome, Lake District, Cotswolds etc. It takes a lot of effort to stand out from the crowd in these towns, but those that do are rewarded very well.

Art, Souvenirs, Confectionary, Bakeries, Coffee, Ice Cream, Jewellery, Toys are examples of high st businesses that are producing great profits, IF done well.

You also need very good sites in the destination towns, which take time and effort to find.

Attempting to open a basic shop in your nearby town (unless it's the type of town above), is likely doomed to failure. And if a side hustle, you are unlikely to put in the effort required to make it a destination business- staff training, shop design and fitout, branding etc.

My experience is 10 years in retail, currently have 8 profitable shops.

 

[Magrisk]

I am not sure if this is relevant or indicative of anything but Banks don't seem to be able to make the High Street work for them either. Possibly because it was all service costs and no longer generating new sales compared to setting up accounts online.

Councils in GB may have a certain autonomy to change rates etc but I see little to no evidence of innovation in Northern Ireland. Having grown up in an incredibly industrious market town I now witness the same report of other posters on this thread, Charity shops, bookies, Super Dug, cafes and "absolutely not our 500th closing down sale" style clothes shops.

About 30 years back in the ROI pre Celtic Tiger, they had the sense to help its regions by allowing them some flexibility, I witnessed this in Galway, which had been on its uppers and had been transformed into a very vibrant small city. No Rates, VAT, or income tax in a nexus of small streets near the harbour created a fabulous retail space. I don't believe chain stores could avail of this only independent retailers.

They also created a no income tax rule for anyone in the creative industries and why Def Leppard moved their in the 90's. At one stage they exported more "product" from the Uk than Cadburys, so not exactly small fry.

You could open a restaurant but it would be quicker to just set fire to everything you own.

 

[Magrisk]

Destination businesses in destination towns and cities are doing fine, with many businesses doing very well.
These would be seaside towns, historic cities such as York, Lincoln, Chester etc, and wealthy/touristy towns such as Frome, Lake District, Cotswolds etc. It takes a lot of effort to stand out from the crowd in these towns, but those that do are rewarded very well.

Art, Souvenirs, Confectionary, Bakeries, Coffee, Ice Cream, Jewellery, Toys are examples of high st businesses that are producing great profits, IF done well.


My experience is 10 years in retail, currently have 8 profitable shops.

Lol that reminded me of visiting Harrogate in the late 2000's and being amazed at a town that could support two Aga showrooms and a Rayburn showroom (or something like that). I felt very out of place

 

[WaveJumper]

Well the trouble with banks was they were there opening hours never a thought for the customer open at 9.30 shut a 3.30 that was a great business model