To hear from Southwark Chamber of Commerce to inform the commissions scrutiny review. Southwark Chamber of Commerce provides network and business support to businesses in Southwark. Further information about Southwark Chamber of Commerce is available via the following link: https://southwarkcommerce.com/what-we-do/
Minutes:
The commission heard from representatives associated with Southwark Chamber of Commerce to inform the commission’s scrutiny review. In attendance were, Sarah Moore-Williams, London Southwark Bank University, Edward Cree, British Land, Scott Bebbington, KALMARs Commercial.
Ms Moore-Williams informed the commission that the South Bank University was undertaking some contract research for Lambeth Council and Lewisham Council on what is happening on the high street. Research was due to start in Deptford High Street where the university would be undertaking a footfall survey and would also be looking at premises. From the extrapolated results, the university would make recommendations for improvements and things a business could do around social media marketing to raise the profile of their business, along with any online retail that they could do.
Ms Moore-Williams also informed the commission of research previously undertaken by the University for Elephant and Castle traders on footfall and where to best place their new pitches. The research undertaken with the traders made the university aware of the need for local businesses to upskill in areas such as social media, online retail and marketing, and website design. Ms Moore-Williams expected that there would be the same type of demand in other areas of Southwark as well.
Ms Moore-Williams informed the commission of the Help to Grow scheme the government was initiating, which was being run through the Chartered Association of Business Schools. The scheme was being delivered by many universities in the country, including South Bank, delivering programmes to SMEs to upskill their businesses, primarily on marketing and communication skills, which were needed to improve their businesses.
The commission then heard from Edward Cree, British Land. Mr Cree informed the meeting that British Land, owned about 4 billion pounds worth of retail and 14 million square feet and that British Land used to be the UKs largest landlord of retail. They had consistently seen a change in consumer habits, driven by a number of things. Online retail, which was already happening, had been accelerated by Covid. Mr Cree explained that consumers had a functional purpose to buy a product, and that they also had an experiential purpose to go shopping. He advised that where the experience isn’t pleasant, then the consumer would choose to do the functional shop, which was now easy to do without the need to leave their home. High streets therefore needed to somehow get the consumer out to experience something pleasant. Mr Cree stressed the need for clean, safe streets and adequate public toilet facilities to support this.
Mr Cree mentioned that Covid had highlighted the importance of social connections for mental wellbeing and advised that high streets needed to create an environment that promoted that social connection, such as somewhere nice to eat, or somewhere to sit down with friends and pass the time. This space had to be safe, clean, vibrant and fun. These things provided a reason to go out to the high street rather than the functional shop. Mr Cree acknowledged that the functional shop was still very important, but was of the view that there was going to be an acceleration of more vacant units. There were too many shops in the UK, and fundamentally, online retail was going to take that market share – research had proved that it was a depreciating requirement to have physical stores. Mr Cree advised that physical stores were however still very important for the consumer and reported that one of the things that British Land were doing was trying to promote the local choice. Many consumers were preferring to see who owns a shop and getting to know the proprietor (as opposed to large conglomerates where it can become faceless). Shopping local would become much more important, so emphasising and helping local businesses in the high street was also as important as creating an experience and an enjoyable place to go.
In relation to segmented ownership, Mr Cree advised that where there was good retail, it was often a single owner of that area/high street. He explained that where you had one owner they were able to tailor the use and mix and could put on activities. Where you had segmented ownerships, the single owners would have one objective which was to mitigate their overheads if their property becomes vacant. This was a reason why high streets were getting a plethora of charity type shops. Mr Cree mentioned that there had also been a deterioration of town centre managers and questioned whether they could be brought back to oversee everything to do with the high street, in places where there was segmented ownership.
The committee then heard from Scott Bebbington, KARLMARs retail decentralised office team. Mr Bebbington reported that KARLMARS mainly covered Southwark but also covered other areas. Mr Bebbington concurred with Edward Cree in respect of shopping being about the experience, the day out and public facilities coming with that. Mr Bebbington felt that it was about having the best possible time in the smallest possible area.
Mr Bebbington highlighted concerns around business rates and also concerns from retail restaurants about the potential loss of revenue, if they were no longer allowed to do takeaway deliveries.
Following the initial presentations, questions and discussion were held around the following areas:
· Community ownership, and how to best involve communities in their high streets and town centres.
· Innovations/initiatives the council could do to help high streets post covid
· Social, cultural and economic barriers to the experiential high street
· Gentrification
· Encouraging / maintaining diversity in the high street
· Turnover rents
· Securing unit spaces – what is attractive to landlords
· Innovative work being done outside Southwark on reconfiguring high streets
· What landlords need from government, creative industries, cultural sector, local authorities to help them reimagine their high streets in better ways