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| How independent retailers are battling to save Britain's high streets | How independent retailers are battling to save Britain's high streets |
| (3 months later) | |
| Free bagels, local rewards schemes offering discounts, and pop-up shops are just some of the weapons being deployed in the battle to save Britain's beleaguered high streets. | Free bagels, local rewards schemes offering discounts, and pop-up shops are just some of the weapons being deployed in the battle to save Britain's beleaguered high streets. |
| Recent weeks have seen more casualties, with furniture store Dwell and toy retailer Modelzone both calling in the administrators, and a study by the Centre for Retail Research predicts that 153 towns and cities face a serious crisis and could, between them, lose 27,000 stores over the next five years. Many town centres have spiralled into a depressing line-up of payday lenders, pound shops and pawnbrokers. But rather than sit back and wait to be swept away, retailers are getting together to try to win your business. | Recent weeks have seen more casualties, with furniture store Dwell and toy retailer Modelzone both calling in the administrators, and a study by the Centre for Retail Research predicts that 153 towns and cities face a serious crisis and could, between them, lose 27,000 stores over the next five years. Many town centres have spiralled into a depressing line-up of payday lenders, pound shops and pawnbrokers. But rather than sit back and wait to be swept away, retailers are getting together to try to win your business. |
| Throughout July a series of events are being held to mark Independent Retailer Month. Shops are offering discounts, running competitions and even putting on live music in a bid to get customers through the door. For the full list, go to independentretailermonth.co.uk/events/2013/ | Throughout July a series of events are being held to mark Independent Retailer Month. Shops are offering discounts, running competitions and even putting on live music in a bid to get customers through the door. For the full list, go to independentretailermonth.co.uk/events/2013/ |
| The organisers point to research by the Centre for Local Economic Strategies which showed that for every £1 spent locally, around 50p to 70p went back into the local economy. For the same £1 spent out of town or online, only about 5p trickled back to the community. Bookshops have been having a particularly tough time. Last year, 73 independent booksellers closed down, according to the Booksellers Association, and the Lion & Unicorn in Richmond is the latest to announce it will be shutting up shop in August, the latest victim of rent increases on Britain's high streets, combined with competition from the likes of Amazon and the supermarkets. | The organisers point to research by the Centre for Local Economic Strategies which showed that for every £1 spent locally, around 50p to 70p went back into the local economy. For the same £1 spent out of town or online, only about 5p trickled back to the community. Bookshops have been having a particularly tough time. Last year, 73 independent booksellers closed down, according to the Booksellers Association, and the Lion & Unicorn in Richmond is the latest to announce it will be shutting up shop in August, the latest victim of rent increases on Britain's high streets, combined with competition from the likes of Amazon and the supermarkets. |
| While the month of events could raise awareness, longer-term initiatives are designed to change the way we shop, using some of the tactics beloved of larger retailers. | While the month of events could raise awareness, longer-term initiatives are designed to change the way we shop, using some of the tactics beloved of larger retailers. |
| Gift vouchers | Gift vouchers |
| Bristol-based entrepreneurs Imogen McIntosh and Anne-Louise Perez have launched a scheme called YourStreet Gift Card to encourage customers to use independent retailers. "We were celebrating a friend's birthday," says Perez. "We had £150 to spend on a gift and it became a difficult choice where to spend it. It dawned on us that the answer would be a gift card to use in lots of independent shops." | Bristol-based entrepreneurs Imogen McIntosh and Anne-Louise Perez have launched a scheme called YourStreet Gift Card to encourage customers to use independent retailers. "We were celebrating a friend's birthday," says Perez. "We had £150 to spend on a gift and it became a difficult choice where to spend it. It dawned on us that the answer would be a gift card to use in lots of independent shops." |
| Shoppers will soon be able to buy the multi-store gift cards online, to be redeemed at independent retailers that have signed up to the scheme. It's currently only running in Bristol, with around 100 outlets signed up so far, from bakeries to pubs, hairdressers and vintage clothes shops. However, the aim is a national scheme. | Shoppers will soon be able to buy the multi-store gift cards online, to be redeemed at independent retailers that have signed up to the scheme. It's currently only running in Bristol, with around 100 outlets signed up so far, from bakeries to pubs, hairdressers and vintage clothes shops. However, the aim is a national scheme. |
| "We want to preserve the high street and and drive footfall to independent shops," Perez says. "We've already had interest from retailers in High Wycombe, Bury and Ipswich. Bristol is just the start." | "We want to preserve the high street and and drive footfall to independent shops," Perez says. "We've already had interest from retailers in High Wycombe, Bury and Ipswich. Bristol is just the start." |
| The pair say that statistics from the UK Gift Card & Voucher Association indicate that 38% of the population buy gift cards. "Currently the profits go to the corporate sector and chain stores. YourStreet aims to bring some of that to our independent retailers." The cards are in production and will be available in the next few weeks. | The pair say that statistics from the UK Gift Card & Voucher Association indicate that 38% of the population buy gift cards. "Currently the profits go to the corporate sector and chain stores. YourStreet aims to bring some of that to our independent retailers." The cards are in production and will be available in the next few weeks. |
| One retailer that has signed up is Hart's Bakery, an artisan bakery in a Victorian railway arch outside Bristol Temple Meads station. Owner Laura Hart says the YourStreet scheme has already received quite a lot of interest: "As a small independent business, anything that encourages people to spend their money at places like ours, I'm definitely in favour of." | One retailer that has signed up is Hart's Bakery, an artisan bakery in a Victorian railway arch outside Bristol Temple Meads station. Owner Laura Hart says the YourStreet scheme has already received quite a lot of interest: "As a small independent business, anything that encourages people to spend their money at places like ours, I'm definitely in favour of." |
| Loyalty schemes | Loyalty schemes |
| There are already thousands of retailer loyalty schemes – the ones that give you a free coffee, say, once you've collected six stamps on a loyalty card – but independents are increasingly teaming up to offer group versions. | There are already thousands of retailer loyalty schemes – the ones that give you a free coffee, say, once you've collected six stamps on a loyalty card – but independents are increasingly teaming up to offer group versions. |
| For example, there is a community not-for-profit loyalty scheme called TAG! operating in the south Manchester area – Chorlton, Didsbury, Withington, Levenshulme, Sale, Stockport, the Heatons, Cheadle and Cheadle Hulme – and in Durham city centre. For £5 you can buy a TAG! card which gives you access to deals, discounts and rewards at scores of independents, from florists and Indian restaurants to opticians and garden centres. Offers range from 10% off, to various freebies. | For example, there is a community not-for-profit loyalty scheme called TAG! operating in the south Manchester area – Chorlton, Didsbury, Withington, Levenshulme, Sale, Stockport, the Heatons, Cheadle and Cheadle Hulme – and in Durham city centre. For £5 you can buy a TAG! card which gives you access to deals, discounts and rewards at scores of independents, from florists and Indian restaurants to opticians and garden centres. Offers range from 10% off, to various freebies. |
| Tea Hive, an independent café in Chorlton, is just one of the members. It says: "Customers receive a reward while knowing their custom is appreciated and benefiting small businesses. This process of small businesses working together keeps the local economy and high street thriving." | Tea Hive, an independent café in Chorlton, is just one of the members. It says: "Customers receive a reward while knowing their custom is appreciated and benefiting small businesses. This process of small businesses working together keeps the local economy and high street thriving." |
| Carole Thompson, founder of the TAG! scheme, adds: "There's no barcode on the cards, so no one can make money as there's no personal data collected about individual customers." | Carole Thompson, founder of the TAG! scheme, adds: "There's no barcode on the cards, so no one can make money as there's no personal data collected about individual customers." |
| Other outlets operate similar schemes, sometimes less formally. There is a recently-launched tie-up between several independent coffee shops in Margate, Kent, which gives customers a free coffee when they buy eight drinks at participating shops. | Other outlets operate similar schemes, sometimes less formally. There is a recently-launched tie-up between several independent coffee shops in Margate, Kent, which gives customers a free coffee when they buy eight drinks at participating shops. |
| Collecting data | Collecting data |
| While incentive schemes can boost individual businesses, they are unlikely to revolutionise Britain's high streets, according to Matthew Hopkinson, director of the Local Data Company. | While incentive schemes can boost individual businesses, they are unlikely to revolutionise Britain's high streets, according to Matthew Hopkinson, director of the Local Data Company. |
| "Independents need to think bigger because people want a single scheme that they can use where they live, where they work, and where they visit at weekends," he says. | "Independents need to think bigger because people want a single scheme that they can use where they live, where they work, and where they visit at weekends," he says. |
| He points to the newly-launched "addictivepoints" reward scheme, a nationwide initiative involving "hundreds" of major brands. The team behind it includes former executives from Google and Groupon. | He points to the newly-launched "addictivepoints" reward scheme, a nationwide initiative involving "hundreds" of major brands. The team behind it includes former executives from Google and Groupon. |
| Customers can earn points in several ways, from buying products to engaging with retailers on social media – "liking" the retailer's Facebook page or following it on Twitter, for example – and use them to get discounts. The retailers get access to data about their customers' buying habits. Hopkinson says this gives retailers access to the kind of data that Tesco collects on its Clubcard members, which can prove valuable. | Customers can earn points in several ways, from buying products to engaging with retailers on social media – "liking" the retailer's Facebook page or following it on Twitter, for example – and use them to get discounts. The retailers get access to data about their customers' buying habits. Hopkinson says this gives retailers access to the kind of data that Tesco collects on its Clubcard members, which can prove valuable. |
| Of course, plenty of consumers object to being monitored by retail giants. Surely many people are less likely to support their local bookshop if they felt the bookseller was gathering a dossier on them? "You make a decision as a consumer," says Hopkinson. "Data is collected if you shop online or use other cards, and we're used to that. This way, data can be put to good use by other retailers, while consumers get products for less money." | Of course, plenty of consumers object to being monitored by retail giants. Surely many people are less likely to support their local bookshop if they felt the bookseller was gathering a dossier on them? "You make a decision as a consumer," says Hopkinson. "Data is collected if you shop online or use other cards, and we're used to that. This way, data can be put to good use by other retailers, while consumers get products for less money." |
| Online | Online |
| If shoppers are going online, it perhaps make sense to join them. OpenHighStreet and MyHigh.St are websites that launched last year with the aim of helping smaller independents compete with major retailers. Backed by a consortium including Unilever, OpenHighStreet began as a pilot scheme in Hereford to enable local food outlets to take on online supermarkets. Customers were able to buy items from their high-street butcher and cheese shops, for example, and their shopping went through a single checkout and arrived in a single delivery. The test period has finished with "moderate results", and the site is expected to relaunch in Shropshire and Gloucester this autumn. | If shoppers are going online, it perhaps make sense to join them. OpenHighStreet and MyHigh.St are websites that launched last year with the aim of helping smaller independents compete with major retailers. Backed by a consortium including Unilever, OpenHighStreet began as a pilot scheme in Hereford to enable local food outlets to take on online supermarkets. Customers were able to buy items from their high-street butcher and cheese shops, for example, and their shopping went through a single checkout and arrived in a single delivery. The test period has finished with "moderate results", and the site is expected to relaunch in Shropshire and Gloucester this autumn. |
| MyHigh.St has taken a different approach; it relies on individual retailers from gift shops to fashion stores to upload their details and arrange their own checkouts and deliveries (the site takes 14% on each transaction). Since launching last summer with 100 independents, MyHigh.St now has 125 retailers on board, with 70 more about to be added. | MyHigh.St has taken a different approach; it relies on individual retailers from gift shops to fashion stores to upload their details and arrange their own checkouts and deliveries (the site takes 14% on each transaction). Since launching last summer with 100 independents, MyHigh.St now has 125 retailers on board, with 70 more about to be added. |
| Loaye Agabani, co-founder of MyHigh.St, says the first year has been a success, though the site is making functionality improvements. Agabani only allows retailers with a bricks and mortar presence to list on the site, and says that the website has helped drive business back to the high street: "We've had feedback from customers who say that, after seeing a shop's online presence, they have gone to visit it in person when they wouldn't have otherwise done so." | Loaye Agabani, co-founder of MyHigh.St, says the first year has been a success, though the site is making functionality improvements. Agabani only allows retailers with a bricks and mortar presence to list on the site, and says that the website has helped drive business back to the high street: "We've had feedback from customers who say that, after seeing a shop's online presence, they have gone to visit it in person when they wouldn't have otherwise done so." |
| Vouchers | Vouchers |
| There's also a new local focus on discount site Groupon. At the end of May, it launched a campaign called "I Love Bradford". Described as its first high-street initiative, the campaign saw retailers in Bradford featured on the website every day for a week. Promotions included 55% off a pair of adult tickets to see the Bradford Bulls play at Odsal stadium (£15 instead of £33) and a two-course meal for two for £12 (usually £28) at Bradford restaurant Omar Khan's. There are plans to roll the local campaigns out across the UK. | There's also a new local focus on discount site Groupon. At the end of May, it launched a campaign called "I Love Bradford". Described as its first high-street initiative, the campaign saw retailers in Bradford featured on the website every day for a week. Promotions included 55% off a pair of adult tickets to see the Bradford Bulls play at Odsal stadium (£15 instead of £33) and a two-course meal for two for £12 (usually £28) at Bradford restaurant Omar Khan's. There are plans to roll the local campaigns out across the UK. |
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