What are the biggest challenges facing the independent High Street

The summer of 1967 saw the birth of a revolutionary new movement with an emphasis on sharing and the community, this phenomenon is better known as “The Summer of Love” and it changed the world we live in, to this day.

There is no denying since 1967, UK high streets have endured challenging times, most recently according to retail analysts Springboard rail strikes that have contributed to the reduction of footfall by 27% for London and a 11.2% decrease of visitor’s numbers outside the capital, but is it really all doom and gloom?

No two high streets are the same, each facing different opportunities and demands. As we recover from the effects of the last two years, and with only 6 months until the “big day”, we at Expression Insurance are looking at the greatest challenges faced by small businesses, and, when bombarded by cost-of-living crisis and rail strike headlines, how indie owners can remain “concerned not consumed” making 2022 their “Summer of Love”

Challenge 1 - Reduction in footfall

COVID-19 and subsequent lockdowns contributed to an increase in online shopping resulting in many chain stores closing their high street branches. According to 2021 research from PwC, over 17,500 branches of chain stores closed as a result of the pandemic, however, a further study from LDC showed that significantly fewer independent stores closed for good, which is great news for small retailers.
Recent rail strikes (with more looming), contributed to a large decrease in high street footfall.
The change in commuting and working from home patterns have and will continue to have future implications for high street businesses in larger towns and cities. Many employees can successfully work from home, resulting in fewer people commuting and visiting the high streets in destinations once commuted to. However, the slow down of commuting into larger towns and cities as in some areas led to an increase in footfall in previous commuter towns. Whether negatively or positively affected with the continuing reopening of workplace and increase in hybrid working, high streets must continually adapt to changes levels of footfall. With high street banks closing branches, along with ATM machines, potential shoppers will look at alternatives to a enjoy “shop local” day.

The role of the high street has evolved in response to current trends and independent business owner must embrace this evolution. Previously, shopping was the primary function on the high street followed by banking business, meeting with friends and leisure and entertainment activities. Now the high street has become a ‘leisure destination’ and shopping has evolved into a social experience.

Solution

High streets need to look at ways of encouraging new footfall from residential developments, new employers, and a wider area, to replace lost spend from commuters and the revised working hours pattern.

Ring & Reserve - With research showing that fewer than two-thirds of small businesses have a website, “ring & reserve”, could be the indie stores spin on click and collect, helping compete with online sales. This is the perfect option for customers who don’t buy on the spot and want to purchase/pick up at a later date. Ring & reserve also allows flexibility around travel disruption. Just make sure you have your phone number prominent in store and online.

A-board - An A-board increases business visibility on a competitive high street, flexibility to advertise menus, seasonal or promotional offers. For example, a new product line or a ‘two-for-one' deal. Easy to update, and keeps your customers informed in real time. It’s good to remember to check your local authority guidelines and insurance cover regarding the use of A-boards as some councils require proof of Public Liability Insurance. (Expression Insurance packages start at £2m Public Liability for small shops and moves up to £5m Public Liability cover for medium and large.)

Customer experience – The quality of service provided to customers is a big contributing factor towards brand loyalty, and the likelihood of them making a repeat visit. Many choose to shop on their local high street asthey want to see it survive. Remember your customers may serve people in their own line of work and look to receive the same service they give when the other side of the counter. Do everything you can to make the experience of shopping or dining with you a good one. Read our recent blog post on how to really show your customers the love.

Older members of the community – The more mature consumer is growing rapidly in the UK with the ‘grey pound’ accounting for £320bn of annual household spending and the over 50’s holding three quarters of the nation’s financial wealth. To compensate for drop in working age footfall look at ways to attract the more mature shopper to the high street and through your business door.

Tourism - UK tourism and staycations boomed during the pandemic. The further threat of rail and airline strikes, coupled with airport staffing crisis, domestic tourism means stay-cationing is here to stay. Make the most of your “honeypot” location, promoting the historic, cultural, or costal scene, targeting the holiday-makers purse.

Local Hub - become a destination - Shopping local has always been treasured by the local community, a café providing that well deserved coffee, a bakery for grabbing a loaf of bread on the way home, or simply catching up over a leisurely lunch at your favourite restaurant. Look at offering consumers an experience that goes beyond purely retail and hospitality, offer an opportunity to see friends, meet people, enjoy a drink or two and be happy.

Challenge 2 - Financial squeeze

The high street is facing changes, with pressure from online retailers and high costs the small business owner is looking for ways to be nimble and navigate these shifting tides.

High car parking costs in towns encourages consumers to visit out of town shopping centres and retail parks where parking is often free, resulting in local high street stores struggling to compete.
High and increasing business rates and cost of stock, impacts independent businesses re-sale strategy forcing small business owners to charge higher prices, not ideal when households are tightening their belts.
The cost of recruitment coupled with the rise in minimum wage is a challenge for the small business owner. As detailed in www.bighospitality.co.uk hospitality operators are continuing to face 'major challenges' recruiting staff, with the latest figures from the Office for National Statistics (ONS) showing some 171,000 vacancies across the sector. This coupled with Covid-19 still poses staffing problems.
Marketing your business can be costly especially when going up against larger organisations

Solution

Incentives for cyclists and walking shoppers : Encourage shoppers to ditch the gas guzzlers and opt for pedal or foot power instead. Transport for London’s report detailed in betterpoints.ltd highlights ‘People walking and cycling visit high streets more frequently and spend more money compared to people in cars. Over a month, people who walk to the high street spend up to 40% more than people who drive to the high street.’ Provide the facility to store bikes securely outside your shop, café or restaurant and stock up on complementary soft drinks and water for the thirsty shopper. By making your business cyclist and pedestrian friendly will help reduce emissions, congestion and improve the shopping experience.

Review your recruitment strategy: Reducing the time it takes to hire staff will in turn reduce the cost per hire. Taking time now to plan a recruitment strategy enables a more cost effect and robust plan is in place and ready to go when required.

Employee referral scheme: Encourage staff to recommend people they know who not only match your job requirement but importantly are a ‘fit’ with the culture of your business. In return offer an introduction bonus as a thank you.

Job description : Create a clear and accurate job description for the various roles within your business that are held on file and ready to deploy when required, saving valuable time.

Pool of talent: Compile a regularly updated list of temporary and seasonal personnel that you can call on when required.

Social media: Take advantage of this free marketing channel to recruit local talent and become an employer of choice for the local area.

Marketing on a budget: Social media marketing is a cost-effective channel for promoting your brand. Posting regularly, giving an insight into the people & story behind your business as well as highlighting new products, menus, or promotions, is a great way to keep you small brand at front of mind. Encourage loyal customers that #loveyourbusiness to increase your reach by sharing content. Who doesn’t like posting what they are eating or their new outfit! #sharethelove

Expressioninsurance support independent business owners in keeping marketing costs low by working with them to create collaborative social media content, tagging their accounts, and sharing why they love their business, the highs, the lows and the lessons others can learn from. It’s a chance for indie owners to tell their story and share the motivation behind their business coupled with the opportunity to promote a new offering/venue/menu etc.

If you would like to join other inspiring businesses being celebrated through our #businesslovestoriescampaign, please contact one of the team at Expressioninsurance and they will be happy to help

It’s 6 months until the “big day” and the indie community has always been one to support each other with the sharing of new and exciting ideas to attract consumers to the high streets, particularly at peak times. Work alongside your fellow business owners on the high street and provide the dining and shopping experience they deserve that will keep them coming back for more.

I raise my glass to small business owners, “here’s and cheers” to the run up to Christmas and making this your “summer of love”.

If you want to find out more about how Expression supports independent business owners who love their business visit or view a quote for your business visit www.expressioninsurance.co.uk