91% retailers in Birmingham believe high streets are suffering, says report
UK’s inflation is at a 40-year high of 10.1% and yet, almost two thirds of retailers (68%) living closest to Birimingham have considered starting their own business
As many as 91% of Birmingham retailers believe that city high streets are suffering, according to a new report.
Of those surveyed, 74% said growing a customer base was the biggest challenge they faced when opening a store, according to the Summer Retail Trend Report by Ankorstore and Mary Portas.
UK’s inflation is at a 40-year high of 10.1% and yet, almost two thirds of retailers (68%) living closest to Birimingham have considered starting their own business. For Brummies, the strongest preference for an addition to the high street was tied between a local grocer/independent supermarket; independent craft store and independent clothing boutique.
As many as 71% of those surveyed think starting a physical business is too expensive and not a reliable source of income, and yet 79% think the Government’s levelling up bill is a good scheme.
Overall, 92% UK retailers think British high streets are suffering. Over two thirds of retailers (69%) believe consumers are keen to shop locally, but cite a number of challenges that impact this revival, including the cost of living (74%) and higher rents (71%), as per the report. Other factors included continuing effects of the pandemic, rising parking cost, and rise in online shopping.
Real stories from Birmingham high streets
The research comes as a baker in Stirchley told how his energy bills have doubled. One of the directors at Loaf told BirminghamWorld how this was compounded with products going up with the price of a rye rising from £3.50 to £3.75, which has seen a sourdough focaccia now costing £2.50 instead of £2.00 among other goods that are now costing more.
Is there any hope for Birmingham high streets?
However, there is light at the end of the tunnel as more than two thirds of retailers (69%) believe consumers want to shop locally, as the local shopping trend continues to pick up steam. There is also indication that retailers on the ground are seeing life slowly return to towns and cities, with 98% of those operating online agreeing that British high streets were struggling, compared to only 86% of retailers who run a physical store.
Recently, a bakery in Stirchley said their energy bills have doubled as a result of the cost-of-living crisis and they are planning for the worst-case scenario.
What does the future hold?
At least 83% of Gen Zers (16-24 year olds) have considered starting their own business, and four in 10 (39%) actively plan to do so.
The Government’s levelling up bill is considered a good scheme by 81% UK consumers as landlords will be required to offer lower rental prices for empty spaces to encourage more physical stores.
However, retailers take a different view from consumers and are more skeptical. At least 38% either do not agree or have a strong opinion on the matter as they question the government’s ability to deliver on its levelling up promises.
If successful, the scheme could see 61% of online retailers considering opening a physical store.
What did the experts say?
Speaking on the findings, Mary Portas, British retail expert and broadcaster, said: “Community is at the heart of British high streets – and right now they are facing challenges from all angles. It’s vital that we together create resilient and revitalised high streets that meet people’s needs. It’s not just about doing business – it’s about doing business in the right way, and championing real change for new and independent retailers.”
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