Future of Town Centres and High Streets

Gloria De Piero Excerpts

Tuesday 17th January 2012 Commons Chamber

[Ann Coffey (Stockport) (Lab)]

We all want our town centres to be successful, and to provide employment and high-quality goods and services for the local community. In my constituency, more than 5,700 people are employed in the retail sector, but, like other town centres, Stockport is facing the challenges posed by changing shopping habits. One of the challenges is undoubtedly the growth in internet sales, which currently account for 12.2% of all sales. Some estimates suggest that e-commerce accounted for nearly half of the retail sales growth in the United Kingdom between 2003 and 2010, and we have seen a dramatic increase of more than 500% in “m-commerce”—sales over mobile devices—in the past two years.

In every town centre the well-known retail brands have a presence, and, together with independent retailers and markets, they have been the face of the high street in town after town. However, it is becoming clear that because of changes in shopping habits, retailers are going to need fewer shops. Some big names have announced that they are considering whether they have the right number and size of stores, including Arcadia, the owner of BHS, which is examining the future of 260 stores.

I believe that the challenge is for retailers to harness the power of the internet in ways that can benefit them and stop the decline of town centres accelerating as some well-known brands pull out. A growing school of thought believes that the internet, and specifically the evolution of multi-channel and social media, provides a significant opportunity for the future success of our towns and cities. The good news is that about a fifth of all internet transactions in the UK involve some in-store research, so internet shopping does not mean that people are abandoning the high street.

Analysis by Experian has revealed that one in 10 consumers use their mobile phones or “tablets” in stores to check the price of goods elsewhere before deciding whether to buy, and that nearly 31% of the UK population now fall into the category of multi-channel shoppers: those who use the internet, trips to stores, price checks on mobile devices, and advice from friends and their “virtual” networks to decide whether to make a purchase. It is clearly not as simple as shoppers deserting the high street for their computers or mobile devices. Indeed, a factor identified in the same report is the frustration with online shopping that is driving consumers back to the high street. The report states that 60% of online shoppers have expressed frustration about the arrival of deliveries while they were out, and that 50% have received products that they did not consider to match the online description.

It is for those reasons that many high street stores are offering more flexible “click and collect” purchasing, which enables customers to shop online and collect in stores. The number of non-food retail purchases to which that applies is expected to increase from a fifth to a third by 2020. Some companies are also encouraging customers to browse online in kiosks in their own stores, or are providing showrooms where customers can browse and receive specialist advice. All those factors are attracting shoppers back to the high street, and are providing opportunities for retailers who get their strategy right to survive.

Big names with collection points and web kiosks that have embraced the internet could in future provide an attractive anchor for town centres, and draw people into the high street. That in turn could increase investment in town centres, and enable each town to develop its own unique offer of, for instance, markets, independent specialist shops and cultural attractions. That, as Mary Portas says, is the key to high street success.

[Gloria De Piero (Ashfield) (Lab)]

Last month Eastwood lost its only shoe shop because Jonathan James went into liquidation. Does my hon. Friend agree that a healthy economy is central to a healthy high street?

[Ann Coffey]

Absolutely, and the difficulty that retailers currently face is partly due to the consequences of the wider economic conditions. I also agree with Mary Portas that it is important for town centre partnerships to work together to meet the new challenges, and for councils to provide access to shopping and adequate parking. Innovative retailers can harness the power of the internet and e-commerce to change the way in which they do business.