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CSC’s annual conference takes place next week, bringing together representatives from across the retail property world. The sector contributes around 5% to the UK economy and BCSC provides an occasion to debate key challenges and opportunities for driving the sustainable growth of the industry.
With the Department for Business, Innovation and Skills consulting on devolving Sunday trading laws, I expect this, together with the sector’s ongoing call to overhaul the business rates system, will be topics that will spark lively debate. While neither is revolutionary in concept, both are of fundamental importance to the wider national economy, with the potential to deliver significant benefits for shoppers, retailers and communities.
As the global retail industry continues to evolve at such a phenomenal rate, it is essential that the UK retail sector keeps pace to ensure it thrives in this environment and can continue to play a key part in supporting national economic growth. As landlords, our direct interaction with shoppers and retailers gives us the ability to help drive growth by matching consumers’ appetite for flexible shopping and leisure options as well as our retailers’ desire to operate effectively in a multichannel environment. But backing from government, in terms of implementing relaxed trading hours and local tax systems that instil confidence and spur further investment, is not to be underestimated.
At Hammerson, the continued success of our UK-wide shopping centre portfolio is predicated upon our ability to create experience-led, inspirational retail and leisure destinations that reflect changing shopper habits and offer something new and exciting for the whole family. Across our destinations that go beyond pure retail, we have seen Sunday footfall over the past four years steadily increase. The rise in 24/7 online shopping and more catering and leisure businesses operating in shopping centres is largely responsible for this trend. Today’s modern consumers require more flexibility in when and how they can shop. Therefore, levelling the field between physical and online trading hours makes sense as a means of boosting growth.
Considering that retail property’s iconic destinations attract visitors from far and wide, it is easy to understand how their performance affects the local economy, directly and indirectly. We know that for Birmingham, the Bullring has become an internationally recognised symbol of “Boomingham” and a major attraction within the region. Similarly, the ongoing development of Victoria Gate in Leeds offers exciting prospects, with the opportunity to capture £540m of additional spend from ndearby Harrogate, and York, as well as from the city’s residents, students, and international visitors.
While employment in the retail sector is often overlooked, it is also important to take into account the large and varied workforce the sector employs. The sector is Britain’s largest private-sector employer, providing jobs for nearly 3m people. Therefore, game-changing areas such as extended trading hours and a business rates system that is fit for purpose, will lead to much-needed employment opportunities.
The relaxation of Sunday trading hours and devolution of trade regulations to local authorities places power in the hands of consumers and the towns and cities in which they shop. This, together with a fairer system of business rates, which are competitive internationally and reflective of prevailing economic conditions, will not only bring the sector into line with leading international retail destinations, but will also support the sustainable economic growth and strengthen the sector’s contribution to the UK economy.
In short, retail property is integral to the national economy and it is crucial that our industry makes its voice heard to bring about change in these two key areas.
Martin Plocica is director UK shopping centres, Hammerson
