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Explosive growth of independent High Street stores in first half of 2017


Explosive growth of independent High Street stores in first half of 2017 compared to first half of 2016

Data released today by The Local Data Company (LDC) and British Independent Retailers Association (bira) shows that traditional independent shops opened significantly more shops than in the same period last year, whilst the national chains continued to see a fall.

Independent shops saw an increase of +762 shops (+0.27%) in H1 2017. This is a significant increase from the net increase of +4 shops (+0.00%) in H1 2016. A net growth of +562 units in H1 2017 on the High streets, was one of the main drivers in the growth of independent retailing in H1 2017 with this being a +181% increase from the +200 unit increase in H1 2016.

The chain retailers have also remained in decline with a net loss of -659 shops (-0.33%) in H1 2017 across GB, which compares to -2,001 shops (-1.02%) in H1 2016.

  • In H1 2017 the net change in independents was +762 units (+0.27%) versus
    +4 (+0.00%) in H1 2016.
  • In H1 2017 a total of 28,076 independents either opened (14,419) or closed (13,657), -10.1% down on H1 2016 where 31,216 opened (15,610) or closed (15,606).
  • Comparison goods (non perishable goods) shops net change was -0.74% in H1 2017 (-0.89% in H1 2016). This is a net decrease of -596 units, an improved figure from the -698 in H1 2016.
  • Leisure (restaurants, cafes, bookmakers & entertainment) growth has increased by +0.55% in H1 2017 compared to +0.06% in H1 2016. In H1 2016 there was a net increase of +475 units versus no change in units (+45 net change) in H1 2016.
  • Convenience retail (bakers, butchers, food shops, & supermarkets) saw a net increase of +24 units (+0.08%) in H1 2017 versus an increase of +219 units (+0.81%) in H1 2016.
  • Service retail (health & beauty, financial services, tattoo parlours and estate agents) increased by the greatest number of units, an increase from 2016, at +859 units (+0.94% versus +0.52% in H1 2016).
  • Key growth sectors have been Barbers, Cafes, Tobacconists/e-cigarette shops, and Hair & Beauty salons.
  • Sectors in decline include Pubs, Women’s clothing shops, Newsagents and Electrical goods.
  • Tobacconists/e-cigarettes (+11%) and Brazilian restaurants (+34%) have increased the most as a percentage of their total units.
  • The North West showed the greatest increase of independents at +230 units (+0.71%) in H1 2017, versus +14 units (+0.05%) in H1 2016.
  • East of England and South West showed the greatest decline of independents at -19 units (-0.09%) and -29 units (-0.11%) respectively
  • Scotland has continued to see a change in fortune, reversing a net decrease of -42 units in H1 2016, to a modest increase of +63 units in H1 2016 and an even bigger increase of +114 units.
  • Sparkhill, Birmingham has the accolade of having the highest percentage of independents at 0% (based on locations with 50+ units) for the second year running.
  • Telford is the town with the lowest percentage of independents at only 5%, against a GB average of 65% (based on locations with 50+ units).
  • Wider analysis of in and out of town locations shows that High Streets saw dramatic improvement from a net increase of +200 units, to a net increase of +562 units in H1 2017. This represented a +0.34% net increase, a +362 unit swing from the +0.12% net increase in H1 2016.
  • The other location types saw an overall increase with Shopping Centres seeing the first net increase in 2 years of +0.67% (versus -0.61% in H1 2016) and Retail Parks edging up by +3.41% (versus +0.63% in H1 2016).

Independents account for 65% of all retail and leisure units in Great Britain, the same as in H1 2016.

Top 10 independent business openings by classification mix

Classifications

Net change %

__ Unit net change

Barbers 3.03 283
Beauty Salons 4.45 261
Cafe & Tearoom 1.37 208
Tobacconists 10.88 155
Mobile Phones 4.57 105
Restaurant & Bar 4.10 104
Convenience Stores 1.43 82
Nail Salons 2.86 78
Bars 1.58 59
Dentists 1.65 57

Table 1. Largest amounts of independent units opened by business type in H1 2017 across GB (Source: LDC)

Top 10 independent business closures by classification mix

Classifications

Net change %

__ Unit net change

Clothes – Women -3.66 -137
Newsagents -2.67 -119
Electrical Goods -6.10 -74
Public Houses & Inns -0.78 -73
Shoe shops -3.59 -45
Computers -1.97 -39
Fashion shops -0.92 -35
Interior Design/ Decoration -1.93 -31
Restaurant – Indian -0.68 -31
Domestic appliances -4.35 -28

Table 2. Largest amounts of units closed by business type in H1 2017 across GB (Source: LDC)

National and regional net variations of independents

Classifications

Net change %

__ Unit net change

East Midlands 0.30 58
East of England -0.09 -19
Greater London 0.01 7
North East 0.40 40
North West 0.71 230
Scotland 0.61 114
South East 0.10 33
South West -0.11 -29
Wales 0.61 64
West Midlands 0.93 194
Yorkshire and the Humber 0.26 70

Table 3. Net percentage change (openings minus closures) of independent units by region in H1 2017 across GB (Source: LDC)

Top 10 independent towns (50+ units)

Towns

__Independent %

Sparkhill 95.0%
Portobello Road, London 94.9%
Goodmayes 95.4%
Barry West 92.6%
Old Bexley 92.2%
West End, Morecambe 91.0%
Conwy 90.9%
Ellesmere 89.2%
Narborough Road, Leicester 90.2%
St. John’s Hill, Battersea 89.6%

Table 4. Towns with the greatest percentage of independent retailers (Source: LDC)

Bottom 10 independent towns (+50 units)

Towns

__Independent %

Telford 15.5%
Ellenbrook 16.1%
Yate 20.4%
Salford 22.1%
Cowley 25.7%
Bracknell 26.4%
Perry Barr 27.0%
Runcorn 27.1%
Milton Keynes 27.3%
Welwyn Garden City 27.4%

Table 5. Towns with the least percentage of independent retailers (Source: LDC)

Change in independents’ numbers by location type

H1 2017 H1 2016

Location Type__

__Net change %

__Unit net change

__Net change %

__Unit net change

High Street 0.34 562 0.12 200
Retail Park 3.41 20 0.63 4
Shopping Centre 0.67 54 -0.61 -49

Table 6. Net change by location type for Independents across 2,700 in and out of town GB locations (Source: LDC)

Matthew Hopkinson, Director at Local Data Company commented:

“The first half of 2017 has seen remarkable growth in the opening of independent shops and food & beverage outlets across Great Britain with a net increase of 762 new trading stores. This is significant in what is a challenging environment and where many chain retailers are closing stores.

Of note is the 10% reduction in overall activity (openings and closures) as this reflects increasing uncertainty in the market or where opportunities to invest are reducing. As the numbers show, independents are an increasingly important stakeholder in every town centre up and down the country and therefore an understanding of how they are performing is key. 65% of all the retail and leisure units across Great Britain are independents and this number has increased in recent years. The internet, customisation and providing a personal service is something that will fuel the openings of independents on our high streets.

History, however, tells us that independents also have the propensity to change rapidly from growth to decline due to the marginal nature of some businesses, shorter lease lengths and wider impacts of changes to the costs funding. For now, it is a good news story and one that we should celebrate and support.”

Alan Hawkins, CEO, British Independent Retailers Association (bira), said

“It’s good to see independents, and the high street in particular, leading the way in net unit growth for the first half of 2017. The courage and we hope skill of the independent entrepreneurial spirit will fly long after the prophets of doom are silent.

The predictability of the growth areas is perhaps a little disappointing being centered on the areas where the customer has to be present, but let’s not knock that, barbers, nails and a cup of coffee all help footfall and give even the harder pressed comparison goods shops a chance to wave their retail magic.”

Note: The total number of independent businesses covered in this research across GB was 288,259

 

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