Deloitte Real Estate partner, who has studied Greater Manchester towns for the Association of Greater Manchester Authorities, outlines his findings and suggests way forward

1. What’s happening on the High Street?
27 November 2013
© 2013 Deloitte LLP. All rights reserved.

2. Place North West – Future of town centres
Content
• The future for retail
• A more ‘agile’ high street
• Going a step further
• Conclusions
© 2013 Deloitte LLP. All rights reserved.

3. The future for retail
Total store numbers
will fall by 22%
between now and
2018 – from
280,000 to 220,000
There will be a
further 316,000 job
losses nationally
A further 164 major
or medium sized
businesses will go
into administration
Online retail sales
will climb from
12.7% to 21.5% by
2018
59% of town centres
will be ‘sustainable’
(but what about the
other 41%?)
© 2013 Deloitte LLP. All rights reserved.

4. Evolution of retail & technology
Technology adoption: number of days to reach 1MM units sold1
~360
~300
Technology adoption drivers
Increased
mobility
~180
~75
~45
~30
~10
6 hours
2007
2010
2011
2013
400
+
300
+
Enhanced
usability
Days
Evolved
connectivity
200
100
+
0
Lower
prices
2002
2002
2007
2007
iPhone 5 sold 2 million units within the first 24 hours of pre-orders in
Sept 2012
© 2013 Deloitte LLP. All rights reserved.

5. Changing patterns of activity
Net store openings and closures by location
(% net change)
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6. Changing patterns of activity
Sector growth 2010 - 2015
Source: Verdict
© 2013 Deloitte LLP. All rights reserved.

7. Where is the growth going to come from?
Net store openings and closures by type
(% net change)
© 2013 Deloitte LLP. All rights reserved.

8. Adapting to demand
Consumers’ attitudes to high-street management
In your view, who should decide which shops and services your local ‘high street’ includes?
© 2013 Deloitte LLP. All rights reserved.

9. A more ‘agile’ high street
• Different use of space – planning implications?
• More flexible leases
• Rewriting business rates + changing the tax system
• New sources of funding
• Engaging local trade
• New approaches to car parking
• The role of local authorities
© 2013 Deloitte LLP. All rights reserved.

10. Greater flexibility through planning
Past
Present (30 May 2013)
Permitted change
from A2, A3, A4, A5
to A1
Flexible permitted change from A1, Change from A1, A2 to
A2, A3, A4, A5, B1, D1, D2 to A1,
C3 residential
A2, A3, B1 for up to two years
(maximum of 150 sq m)
(Maximum of 150 sq m)
No permitted change
from A1
Future?
Change from A1 to
banks and building
societies
Betting shops and
payday loan shops
moved from A2 to sui
generis
© 2013 Deloitte LLP. All rights reserved.

11. More flexible formats
• ‘Click & Collect’ will become more popular
• Need for new layouts and configuration of space
• Temporary facilities + pop up shops
© 2013 Deloitte LLP. All rights reserved.

12. Going a step further
Town Centre Investment Zones
© 2013 Deloitte LLP. All rights reserved.

13. Going a step further
Funding streams
established to turn
shops into houses
Encouragement for
entrepreneurs
Impact of public
sector investment
(health, education
etc.)
© 2013 Deloitte LLP. All rights reserved.

14. Conclusions
This is not evolution – it is more of a revolution:
•
Some towns will not survive – and need to change course
•
Rules and regulations need to allow change to occur – not
stand in its way
•
There is room for everybody – but maybe the best new
ideas will come from entrepreneurial businesses
•
Local authorities will have to lead the way – taking ‘control’
of their town centres
© 2013 Deloitte LLP. All rights reserved.

15. What’s happening on the High Street?
Simon Bedford
Partner
Deloitte Real Estate
2 Hardman Street
Manchester
M60 2AT
Tel/Direct: +44 (0)161 455 6484
Mobile +44(0)7717 894598
sbedford@deloitte.co.uk
www.deloitterealestate.co.uk
© 2013 Deloitte LLP. All rights reserved.

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