Manchester City Council Item 6 Economy, Employment and Skills Overview and Scrutiny Committee 19 October 2011

Manchester City Council Report for Information

Report to: Economy, Employment and Skills Overview and Scrutiny Committee – 19 October 2011

Subject: Independent Retail – Cheetham Hill, and Levenshulme

Report of: Head of Regeneration

Summary

Members are asked to note the findings of the research into independent retail provision in the three district centres of Cheetham Hill, Chorlton and Levenshulme. The report contains a number of recommendations across each district centre to improve and strengthen the overall retail offer.

Recommendations

Members note the content of the report.

Wards Affected:

Cheetham, Chorlton, and Levenshulme

Contact Officers:

Angela Harrington Head of Regeneration 0161 234 3171 [email protected]

Andy Wilson Regeneration Manager South 0161 277 1880 [email protected]

Mark Rainey Regeneration Manager North 0161 655 7861 [email protected]

Background documents (available for public inspection):

North Manchester Strategic Regeneration Framework, 2004 South Manchester Strategic Regeneration Framework, October 2007 GVA Grimley Quantitative Retail Needs Study, July 2006

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GVA Grimley Independent Retailers Study, October 2009 Levenshulme District Centre Plan, October 2009 Chorlton District Centre Plan. June 2010

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1. Background

1.1 and its district centres are key economic assets, with the City Centre recognised as the primary economic driver for the City Region. Strategic Regeneration Frameworks recognise the importance of district centres and local centres as fundamental to the sustainability of neighbourhoods. The City’s Local Development Framework Core Strategy (draft) recognises the role of independent retailers within district centres and highlights the need to promote choice and competition particularly where development will support the independent sector.

1.2 The Manchester Local Economic Assessment indicates that retail accounts for 7.6% of employment in the city, and that micro-businesses (1-10 employees) account for 79.7% of businesses (14,205 units). While the LEA does not measure independent retail as a category these figures give an idea of the scale of both retail and small business in the local economy.

1.3 The role of independent retail and the extent to which the City Council can support it has been the subject of a number of reports to the Economy, Employment and Skills Scrutiny Committee over recent years. Whilst facing threats from out of town shopping centres, larger supermarket chains and the growth of internet shopping, it is clear the independent retail sector brings character to district centres and also provides significant employment opportunities. In the face of these wider structural threats independent retailers face many local challenges – as described in the Independent Retail Study below.

1.4 More recently the disturbances which affected the city in August have caused disruption to many local independent businesses. A short summary (appendix 1) is attached to this report outlining what measures have been taken by the City Council and its partners to assist businesses during this difficult period.

2. Independent Retail Study 2010

2.1 The Retail Group (a specialist consultancy in consumer and retail sectors) was commissioned by Manchester City Council in 2010 to undertake a study of independent retailers in three district centres; Cheetham Hill, Levenshulme and Chorlton. The aims of the study were to assess how independent retailers were performing in each of the three locations; identify the issues they are facing, and to indicate how the Council might support the independent retail sector in order to create vibrant district centres. This work included an operator survey and an analysis of shopper profile.

2.2 Recommendations were made to improve the performance of independent retailers in each of the locations, and a summary report was produced to:

 Draw together the common findings, issues and improvements needed from each of the three District Centres to identify common issues, as well as the centre specific ones.

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 Identify the success factors that need to be in place to develop sustainable independent retail offers in vibrant District Centres.  Provide a framework of appropriate solutions on which to monitor, assess and improve other District Centre  The scale of independent retail in each district centre is as follows;

Centre Total units – all sectors Independents Cheetham 130 60% Chorlton 270 66% Levenshulme 290 99%

3. Summary of Retail Group’s analysis by centre

3.1 This section summarises the views of the Retail Group regarding independent retail in each of the three district centres.

3.2 Cheetham

The centre comprises approx 130 retail units, generally in small, old terraced units forming a traditional, linear "High St" layout with a more recently built pedestrianised precinct at right angles to the main frontage leading to the new Tesco store which is isolated from the main run of shops by the largely vacant new units. The centre caters well for the day to day convenience needs of the catchment population in terms of range of outlets but suffers from a relatively poor physical environment in much of the centre. Poor public realm management is highlighted as a major issue. It also has a narrow range of comparison goods outlets. There are few national, multiple stores with the local, independent sector dominating the mix. The retail offer at Cheetham Hill centre reflects the catchment population which is generally less affluent than the UK average.

The City Council should reaffirm its aim of enhancing Cheetham Hill Centre in line with policies of the North Manchester Strategic Regeneration Framework and focus on improving the quality and sustainability of the Centre, whilst working closely with retailers, shoppers and other key partners.

3.3 Chorlton

Chorlton District Centre is a busy suburban centre (circa 270 shops) four miles south of Manchester City Centre. The Square Shopping Precinct, a dated open air centre is on the north side of Wilbraham Road. There is also a collection of shops on Beech Road about half a mile to the south of the centre of Chorlton, near the bus station. The environment is not shopper friendly. The busy traffic creates significant noise and fumes and crossing the roads is difficult at times. There are few pedestrian crossings and on street parking means pedestrians are often manoeuvring between parked cars. The area lacks the softer elements such as trees / greenery, seating and hanging baskets which help to create a pleasant environment.

Independents, catering / leisure and services operators dominate the offer with a small number of multiples. The offer feels fragmented due to the way the shops are spread over a large area and mixed with residential, offices and garages.

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Although there are a good number of independents in Chorlton, as a group they have little collective impact as they are too spread out to create critical mass. Many of the better quality ones are typically on the periphery of the retail offer and those along Beech Road do not feel part of the offer at all.

Retail standards amongst the independents are very mixed. There are a number of modern fascias and shop fits where the offer is well merchandised and the message to the customer about what is being sold and why they should visit is abundantly clear. They have created interesting and innovative looking stores and in many cases are selling something ‘different’. The same can be said of a number of the delicatessens and eateries where quality, tempting food is readily available, often within a comfortable and contemporary seating area. However there are a number of independents where the shop looks tired and shabby and inside the product is cluttered and poorly presented and the external appearance of the shops is uninviting.

3.4 Levenshulme

Levenshulme is a large District Centre (circa 290 units) located about 4 miles to the south east of Manchester City Centre. It consists of a 1-mile long cluster of shops, typically occupying both sides of the very busy A6 ( Road). As the shops are not continuous, and have much overlap in terms of mix and role, it could be argued that rather than being a single parade, Levenshulme’s offer is more a collection of local parades, each having their own local appeal, usage pattern and customer base, although obviously with some overlap. The centre is dominated by independent retail, catering and service goods operators, where independents account for 99.5% of all operators. Levenshulme offers the antithesis of the ‘clone town’ retail experience

At the heart of the district centre, the impact of the shop units is reasonably good, however the visibility of the whole offer is poor. Many of the fast food restaurants and takeaways have their shutters down during the day, particularly from Matthews Lane down to Mayfield Road.

The linear layout of Levenshulme makes it very easy to understand and see the whole offer. Unfortunately it is 0.9 miles from one end of the district centre boundary to the other. This is a result of a disparate, drawn out offer, with little sign posting, significant runs of non active, non commercial floor space, a lack of strong anchors, no obvious central hub, limited clustering of logical uses and lack of clearly defined entrance and exit.

The physical environment is satisfactory in terms of streetscape, pavements, lighting and roads, however the quality of the retail environment is significantly reduced by the number of vacant units, compounded by a large number of evening food and catering operators not opening their shutters during the day. As a result it would appear that circa 25%-30% of all shop units are not active during the day. This rises to circa 50% near the takeaway cluster to the north.

There is a wide range of retail standards evident. Some of the long standing operators such as Gay Lyfe Pets, Rainbow Shopping Centre, Nova Cut and Blow,

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Everest DIY and Snooker Shop have excellent retail standards including levels of customer service. The owner operators clearly take a pride in their shops and have obviously invested in facilities and merchandising equipment and work hard to ensure their shops make a good first impression. A number of shops though show poor retail standards with cluttered windows, empty shelves, hand written signage and dark gloomy interiors.

4. Issues affecting independent retailers

The following table summarises the common issues affecting independent retailers in the district centres based on the responses from the local operator survey.

Cheetham Levenshulme Chorlton Hill Overzealous traffic wardens  Poor shopping experience due to  drunks / antisocial behaviour Too many shutters down during the day  District Centre has poor sense of arrival   District Centre boundary is not signed   or highlighted Physical external appearance of shops   is poor Standards of retailing are typically poor   Visibly dominant vacancies   Many retailers appear to have given up   Over-provision of fast food operators   Offer is too spread out    Little evidence of regeneration or    renewal Unattractive and unappealing retail    environment Retail offer has no heart / limited critical    mass Offer is incomplete / gaps exist in the    offer No clear identity / brand    No Town Centre Manager    Few local champions / advocates    Perceived lack of support from Council    Limited / poorly integrated food store    provision Lack of retail anchors, including    multiples

5. Success factors for Sustainable Independent Retail Offers

The report identified a number of factors which need to be in place in order to help independent retail thrive. These are listed below.

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 Clear, recognisable, integrated and promoted anchors, especially foodstores  Clear heart or centre, with at least 4-5 units trading from decent sized units (200 sq.m.).  Easy, accessible and pain free car parking.  Clear branding and centre signage.  Available training support / mentoring.  Multiple / recognisable brand names  Strong links to local community  Visible evidence that the Council is committed to improving the retail offer / environment  Retailer forum.  Local champions.  Appointed or seconded District Centre Managers.  Programme of events.  Clear channels of communication from the Council direct to the shop keepers, i.e. Council as the enabler  Active frontages during the day

6. Potential solutions to address issues faced by independent retailers.

The following table summarises the practical solutions which may deal with the concerns expressed by traders.

Issue Potential Solutions & Initiatives Too many shutters down Introduce and promote ‘established’ opening during the day times and communicate ‘set’ times via trader forum Include as future planning conditions Poor shopping experience due Higher profile GMP and MCC presence needed to drunks / antisocial behaviour Overzealous traffic wardens Change restrictions to be more shopper friendly District Centre has poor sense Create brand identity of arrival Focus redevelopment activity on gateway sites Introduce hoardings to hide problematic sites District Centre boundary is not Clearer signage and brand signed or highlighted Physical external appearance Investigate funding opportunities for shop front of shops is poor improvement schemes Serve enforcement notices on worst offenders Standards of retailing are District Centre Manager to work with individual typically poor traders to raise standards Training & support needed from variety of sources - include local business community, local entrepreneurs and colleges Visibly dominant vacancies Work with landlords / owners and local agents to secure new operators Encourage local residents to become shop

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keepers through trader and resident forums Use street furniture such as seating and signage to provide focus on existing positive aspects, such as strong independent anchor stores Offer is too spread out Introduce mini named or themed zones / villages, following local shopping provision Many retailers appear to have Encourage District Centre champions to liaise given up with and invigorate local operators. Communicate improvement plan/events programme via trader forum Little evidence of regeneration Encourage developers to use site hoardings to or renewal advertise district centre Introduce retail community newsletter to communicate proposed plans Unattractive and unappealing Encourage shopkeepers and owners to improve retail environment external fascias, windows and doors via one to one discussions/ through local champions as well as via trader forums Retail offer has no heart / Encourage anchors to expand limited critical mass Provide focus on existing assets such as anchor stores through activities and facilities Over-provision of fast food Introduce new policies limiting quantum of fast operators food operators, especially not in core areas Offer is incomplete / gaps exist Work with local agents to fill gaps, prepare in the offer summary list of vacant properties and the details of each unit then prepare prospectus to promote the location No clear identity / brand Define positive attributes to promote Rollout branding once improvements are underway No Town Centre Manager Appoint experienced TCM, with skill-set to stimulate regeneration, communicate proposed activities and trader and resident liaison, events and promotions etc. Few local champions / Encourage or appoint informal local champions advocates from the local retailer, business and resident community Perceived lack of support from Communicate that Council’s role is one of an Council enabler, to encourage communities to self help Facilitate launch of trader forum Limited / poor food store Encourage existing anchors to extend provision Promote key existing strengths Lack of retail anchors Encourage developers to provide bigger footprint units and treat local independents as anchors through dedicated parking and remote signage Work with local agents to attract priority tenants

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7. Future Opportunities for MCC to consider

7.1 The report highlights a range of potential solutions. Some of them require additional funding; others may be delivered using existing resources. The main areas where the City Council can have an impact are through its strategic planning and development control function; through its neighbourhood management role, and through the work of its neighbourhood regeneration teams.

7.2 Planning - The Retail Group report identifies issues like opening hours, shutters, and shop fronts which can be addressed via development control and enforcement. Controlling the growth of hot food outlets (A5) is also seen as important (this has also been highlighted by local members). Planning officers are already seeking ways to address the spread of A5 uses which will stand up to appeal.

At a strategic level the ability to guide development by national multiples which can act as anchors to increase footfall will be important. Similarly, encouraging developments which create larger footplates will also be useful.

7.3 Neighbourhood management - The creation of new neighbourhood delivery teams which bring together street management, inspection and enforcement will also offer an opportunity to deliver a more locally oriented services and improve liaison with businesses.

7.4 Neighbourhood regeneration - Newly established neighbourhood regeneration teams will bring together ward coordination and economic regeneration roles. Lead officers are responsible for the delivery of the district centre action plans in South Manchester, engaging both members and businesses in overseeing plans to improve local shopping centres. In the absence of funding to appoint Town Centre Managers this local regeneration role will continue be important as a point of contact for the business community. Traders events in Levenshulme, and offer models of how the City can support and promote independent retail.

8. Conclusion

8.1 The City Council’s role is to enable the development of independent retail. Business will thrive where the conditions are right. Consequently the challenge for the Council is to continue to attract investment by encouraging developments which act as anchors; prevent leakage of spend and increase footfall within the City and its district centres. Focusing service delivery hubs within local centres (eg; the new Longsight Library and Learning Centre) will also play a major part in supporting this objective.

8.2 The role of both district centre partnerships and ward coordination groups will be important in ensuring that the need for high quality independent retail in our neighbourhoods continues to be valued and supported.

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Appendix 1

1.0 Summary of Manchester’s riot response support for businesses

1.1 As a result of the disturbances in the city centre in early August, a recovery group was immediately established with representatives of various MCC departments, CityCo, GM Chamber, Manchester Solutions and GMP to ensure that a coordinated response was implemented to minimise the damage done, particularly to small, independent retailers, mainly in the city centre.

1.2 A recovery plan was developed with immediate priorities to make contact with affected businesses to urgently identify what support would be needed to aid recovery.

1.3 The Head of the Revenues and Benefits Unit was identified as the MCC’s single point of contact for advice and support to businesses. Working closely with CityCo and GMP, a list of directly affected businesses was established and locations identified and mapped. Just under 200 Manchester businesses were directly affected with 77 experiencing burglary, 115 criminal or other damage and 4 arson. Approximately 50% of those businesses were independent or franchises.

1.4 All affected businesses were visited to find out the extent of the damage and to give initial advice on insurance claims and claims to the GM Police Authority under the terms of the Riot Damages Act of 1896. Information about temporary Business Rate Relief was also issued as were details of the longer term support on offer from Business Support Solutions (part of the Manchester Solutions group) to help businesses rebuild their trading positions. Fourteen businesses outside of the city centre were also given the same support.

1.5 A week after the riots, the Government announced its response which included a support package for local businesses affected. This included a Recovery Fund (£10m nationally) to:-

a) help fund the costs incurred by local authorities of providing Business Rate Hardship Relief b) help businesses get back on their feet more quickly, including tackling cash flow problems whilst waiting for insurance or other claims to be met c) help businesses with non-refundable exceptional business expenses and to help rebuild business confidence in the affected areas

The aid to businesses under b) and c) is limited to smaller businesses. The expectation is that amounts granted to individual businesses will not exceed £2,500 and that funding will cover direct costs but not trading losses. MCC will need to submit a claim to Government by 7th November to cover the Business Rate Hardship Relief costs.

1.6 In addition, there have been a number of private sector responses, including a dedicated telephone helpline provided by the Law Society and a number of individual law firms, an initiative from NatWest/RBS to provide interest free

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loans and the launching of the High Street Fund by Sir William Castell, supported by Barclays/Santander which has raised £4m in total to support affected SMEs with grants of up to £2,000.

1.7 Under the banner of Helping Hands for Business, MCC has led on ensuring that information on all of the support available has been provided to all affected businesses. A simple claim form has been developed to help business to apply for the Government scheme and updated information has been maintained on the website. 1.8 The I Love MCR campaign was a grass roots campaign which allowed residents and local businesses to send out positive messages about the resilience of the city and provided the impetus for businesses and residents to come together to get the city centre back to normal as soon as possible. Over a three week period a number of events and activities were delivered, including MCR loves you which involved over 200 city centre shops, restaurants, bars, cinemas and other service providers offering special discounts and offers to encourage people back into the city centre. The final part of the campaign was a weekend festival led by independent businesses in the Northern Quarter which attracted over 15,000 visitors.

1.9 Footfall in the city centre was negatively affected by the disturbances with the initial impact being severe. The majority of shops were back open two days after the disturbances, however city centre footfall was down by at least 20- 25% the first weekend after the disturbances. As it became apparent that there was little likelihood of a repeat, confidence started to return, aided by the I love MCR campaign. By the August bank holiday weekend, trading in the city centre was almost back to normal.

2.0 Next steps

2.1 Whilst the recovery group is no longer meeting, its members have forged stronger links with businesses and each other and are continuing to support affected businesses to ensure that they take up the available support. An update on take up of the Government scheme can be provided after November if required.

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