Report commissioned by PEP&CO with help from Savills Talking shops – Creating a new high street Championing customers’ expectations of the town centres where they shop, work and play I’ve been proud to call St Albans my home for the past 25 years. It’s a historic place – Hertfordshire’s oldest town – with a vibrant high street loved by residents and visitors alike. Or at least until recently. Like many so-called secondary towns, St Albans’ high street found the last recession tough going. It wasn’t immune to the demise or shrinking of big household names. Woolworths closed its doors on St Peters Street in 2009, GAME followed suit, so did Thorntons. Independent traders struggled too as they found themselves caught in the crossfire of weakening demand and lower footfall. But St Albans, like many other places across the country began to reshape itself to reflect a new consumer – one that was certainly more frugal but prepared to embrace a smaller shop, closer to home, if her new expectations on price were met. It was against this backdrop that Andy Bond & I began thinking about fashion retail in these high streets. At the beginning of 2015, it seemed to us that the business case for PEP&CO on secondary high streets was compelling, and we had to move quickly. From Bootle to Bridgend, Dunfermline to Dartford, hard discount food retailers such Aldi and Lidl were growing market share rapidly. Non-food discounters, led by the pound stores were thriving in these kind of locations. But fashion retailers hadn’t yet adapted to this new consumer. 2 Squeezed between e-tailing and out-of-town megastores, fashion retailers were still struggling - in some cases moving out; in others, even checking out for good. But it seemed clear to us that those retailers who provided real, not phoney value could thrive as people looked to shop closer to home. That’s why we embarked on Britain’s fastest ‘scale-from-scratch’ retail launch, opening 50 PEP&CO stores in just over 50 days in Scotland, Wales and England. And despite the challenging timescales, we’ve been delighted at the commitment and co-operation of partners – landlords, councils, and shopping centres – to help us open our doors. There’s been a willingness to work together and that’s been rewarded as we’ve seen the stores’ early performance. It seems our hunch - that there was an appetite for discount family fashion - was right. So why is it still the case, despite the evidence, that the dominating high street narrative is one of decline and decay? “The death of the high street” is not just a cliché, it seems to have become an unchallenged truth. Sure, it’s undeniable that many town centres – just like mine in St Albans - have faced tough times as they sought to redefine their role in a changing world. And it’s certainly true they sometimes haven’t helped themselves. But it’s also indisputable that people love where they live. They want their high streets and town centres to do well. And, as we now know better than most, if the offer is right, they’re prepared to support them. So it’s important we listen to the people that live and work in what we euphemistically call “secondary high streets”. But when I look at the hundreds of reports from policymakers and consultants about 3 how to keep the heart of places like Crewe and Corby beating strongly, their voice is hard to find. So as we opened in 50 towns across the UK, in partnership with our friends at Savills, we asked former BBC Consumer Affairs Correspendent Nicola Carslaw to ask real people what they wanted to see in their high streets. This report, unvarnished, unfiltered, untainted by political or business agendas is a summary of what they told us. One thing I do know from a lifetime in retail, is that the best answers are those articulated by customers. Success is directly linked to your ability to listen. Retailers acting alone can’t create the kind of high streets people want. Nor can local councils, landlords or policymakers act in isolation from each other. People are asking for real leadership, collaboration, ingenuity between all those that have stake in the places they love, so they can flourish and prosper. I’m proud that PEP&CO, from a standing start, is playing a small role in bringing back vibrancy to Britain’s high streets. We stand ready to listen to customers as we help shape the high streets they love. Adrian Mountford 12 April 2016 4 SETTING OUT THE STALL Town centres and high streets are graphic symbols of the state of the UK economy and many thousands of words have been spoken, treatises written and initiatives launched on their decline, rejuvenation, revival and reinvention. What’s extraordinary is that studies have largely omitted the views of the consumers whose actions have such a strong impact on the state of our retail economy. This piece of reportage offers an insight into how customers think, what they want from their towns and how they envisage the future of shopping. It is not a piece of science, but we believe it fairly reflects the most comprehensive collection of customers’ perspectives on their high streets yet published in Britain; we think it is the first time that a report has been dedicated to the voices and recommendations of shoppers for the revival of their towns. As PEP&CO opened its 50 stores in the second half of 2015 we spoke face- to-face with customers in some 30 secondary or ‘B grade’ high streets and shopping centres. 5 The towns we visited had all been selected by Savills as providing the appropriate market conditions for retailer PEP&CO, a new brand setting up 50 stores during the summer of 2015, aimed at “mums on a budget.” Many shoppers said, unprompted, that they were pleased that someone was “at last” listening to their opinions. They hoped that the resulting insights would not be ignored by local and national governments, retailers, landlords, the leisure industry and businesses. It is clear that people love their high streets and want them to succeed. However, their expectations of anyone listening to them, let alone acting on their recommendations, are low. THE WORD ON THE STREET: Summary of shoppers’ views There is a danger when you interview “real people” that they will tell you their truth, warts and all. For this report hundreds of shoppers have expressed often trenchant views about their town centres and high streets. Some of the opinions will be unpalatable for centre management, landlords, local councils and retailers. Occasionally opinions are based on myth or perceived wisdom. But mostly the views are well-intentioned. You could call it constructive criticism; people see themselves as critical friends of their high streets and shopping centres. Take Jeanne, back from her holiday home in southern Spain and visiting her daughter in England’s midlands: “Compared to the continent so many town 6 centres here are disgusting. That’s not too strong a word. But we really want things to get better. We don’t want to have to spend time and money in a place so bad that it’s an unfair reflection on the people who shop here. We deserve better.” What emerges clearly in our nationwide vox pops is that shoppers are willing their secondary high streets to succeed. They like the convenience of the location, they get excited when they hear of a new store opening and they become frustrated when a shop closes, leaving a blacked-out shop- front and an unsightly To Let sign. We want more choice… A near universal call is for more choice – a better mix of shops. From East Kilbride to Eastleigh, mums of all ages want not only a Primark and a Peacocks but a Debenhams or an “up-market” department store to give them a choice of “something of everything and for everyone.” Young men such as John in Kirkcaldy complain there aren’t enough menswear shops, while others share Kathryn in Falkirk’s wish for more plus-size clothing. 7 Think of the children… Up and down the country, customers talk about a lack of things to do for children, whether ambitious facilities such as a climbing wall and skating rink, or simple activities including face-painting or art workshops. Young mums talk about soft play areas for babies and toddlers, with one or two expressing a preference for a crèche where they could leave their baby while they shop or meet friends. Improve public transport and parking… Many find that buses into the town centre are not always frequent enough or are costly. For drivers, “too expensive” parking charges, lack of spaces, exclusive resident permits and antiquated or even “scary,” “smelly,” “too small” multi- storeys are frequently cited as a barrier to shopping locally, as opposed to driving away to big “glossy” centres such as The Trafford Centre, Westfield or Milton Keynes. A frequent demand is for free car parking – and indeed there is free parking in a number of centres, including, for example, Cwmbran, Runcorn and Newton Mearns, and Bolton Market Place, where it is free for 90 minutes. 8 Be part of the community… Those who drive into town or take public transport have to be pressed hard to think whether their town centre should also be a place for living and working in, although many define a town centre or high street as “a community area.” Those who live within 20 minutes’ walking distance of their high street, as in Runcorn, say that’s just how things should be: being near the centre “makes life so much more pleasant, so much easier.” Slip safely from day to night… Should the high street do different things at different times of the day? There have been mixed views about this across Britain, ranging from indifference in Hemel Hempstead, Hertfordshire, to a clear desire in Eastleigh, Hampshire, and all eight centres visited in Scotland for the shopping centres to drift seamlessly and safely from day to night.