ROLL OUT THE WELCOME MATS FOR CHAINS


March 6, 2013

Retail News

Taking potshots at chain coffee shops isn’t difficult – especially in this climate.  Starbucks is under fire amid claims it hasn’t paid enough UK tax and Costa Coffee is a seemingly unwelcome guest in some towns.

And this despite the fact that Costa’s a British business which had 1500 people chasing after eight jobs in its new Mapperley branch.  That doesn’t sound unwelcome to me.

We have a mixed-up attitude towards coffee shops in this country.  Partly it’s because the whole concept of big business isn’t popular right now, partly it’s because there’s a widespread belief that chains do nothing but destroy independent retailing.

Is that really true, though?  To be sure, supermarkets have made it extremely difficult for the butcher, baker and candlestick maker to make a living out of Ye Olde Corner Shoppe.  But that’s because they are generally better – if you want to go back to the world of corner shops you go back to a world of a limited range of goods which costs more and is only available at certain times of the year.

We live in a busier, more demanding 21st century world and the idea that shoppers would walk from shop to shop when they can pull up in a car park and buy everything in one place – or buy online and enjoy home delivery – is a view of the world seen through rose-tinted specs.

Let’s be clear about this:  the idea that big chains have killed off independent retailing is a hoary old myth and a lazy cliché.  The majority of moans and groans I hear are actually requests for a monopoly within a certain location.   

The fact is, consumers have never been so savvy and retailers have to fight so hard to earn every pound.

Sure, there is no hiding away from the fact that retailing is a hard slog but independent retailers who identify their point of difference can compete in the national retailing arena.  National retailers should be seen as a positive.  They attract custom, increase footfall, invest heavily into their fit out and generally improve the appearance and reputation of the vicinity.  

 

That Starbucks moving into the old Bentinck Hotel near the railway station represents yet more independent decline is rubbish.  Few tears will be shed for the Bentinck’s demise, and Starbuck’s decision to move into this character building tells you not that the station area is down on its luck, but that a £60m investment in turning the railway station into a transport interchange is seen as a major opportunity for growth.  And growth means jobs, remember?

 

There is no hiding the fact that retailing is tough, however, a fall in rental values, an increase in willing landlords, small business rates relief, less onerous leases and a general shift in consumer sentiment toward specialist independents mean the market has never been so good for independent retailers.  The FHP retail and leisure team have let countless units to good independents over the years and never more so than over the past couple of years.

 

There’s Cow, the independent fashion retailer moving out of Hockley and expanding into bigger premises on the corner of Fletcher Gate.

 

There’s the Cheese Shop, another independent deli expanding into bigger premises in Flying Horse Walk.

 

There’s Apalt, the independent clothing alterations service moving into the same location who are now under offer on two other units in the city.

 

There’s Belle & Jerome, Sinatra’s, Homemade, Stick & Ribbon, Tokenhouse, Excel, White Rabbit, Backlash Clothing – the list could go on.

 

Nationals retailers all started somewhere, from humble beginnings to multiple stores.  What do these retailers have in common?  They are very good at what they do.  Retailing is a tough game and it is this that matters rather than whether you’re independent or part of a chain.

 

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