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18

Apr 2020

Business
Business

COLUMN: Harrogate retailers may not survive the months following lockdown

Published: 18 Apr 2020, 09:00 BST

Updated: 18 Apr 2020, 09:07 BST

by Tamsin O'Brien

Comment

0

Bob Kennedy, chair of the Harrogate BID, gives his views in a column for The Stray Ferret and says the real problems come once lockdown ends

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This column is written for The Stray Ferret by Bob Kennedy, Chair of the Harrogate BID (Business Improvement District) which aims to promote the town centre.  Mr Kennedy is the owner of G23 and Porters menswear stores in Harrogate. 



Where do we go from here?  This is the question on many retailers' minds up and down the country. I’m an independent retailer with two shops in Harrogate and one in Ilkley. We have been trading our G23 and Porters stores in Harrogate since 1993 and so whilst I can only guess at the situation for the major national chains, I do believe I understand the independents problems and particularly in my home town of Harrogate.

Retail has been a struggle for many in Harrogate over the last few years. We can clearly see this with the likes of H&M, Topshop, Cath Kidson, Gap and now Jack Wills all deciding to leave, but what is causing this downturn in Harrogate’s fortunes?

There are many reasons nationally why high streets are struggling and these debates seem to go on and on with little being done to make the changes needed.

Some blame greedy landlords and this might have been the case in the past but in my experience landlords seem willing to talk now and are willing to negotiate new rental terms.

Then there’s the internet. We all know how easy it is particularly at Christmas to sit at home and order online but this is a big reason for the decline in footfall. If we want to have a lovely town centre we need to support the shops in the town centre. Ilkley is a great example of locals supporting the town.

Next up is car parking. Whether it’s expensive to park or not, car parking seems to be a real issue. People hate paying to park. They hate having to look at their watch and dash off before they get a ticket. As a retailer, it always amazes me that there are so many traffic wardens constantly patrolling Harrogate and so few police. It’s no wonder people choose to visit a retail park with free parking or shop online.

Lastly, retailers have been faced with crazy business rates over the last few years. The amount of money we have been paying the government / local authority over the last few years has been extortionate. I personally pay around £50’000 a year and in return receive nothing, they don’t even empty the bins!

So, how are the retailers of Harrogate going to fair after lockdown?


There’s no doubt that some will fold, collapse into administration before lockdown lifts but my worry is the six months after lockdown. Many will be able to survive during lockdown, after all, the landlords seem to be holding off and trying to share the burden, business rates have been cancelled until April 2021 and the government is giving 80% support to cover wages for staff on furlough. Suppliers to shops like mine are being fair, not pushing for payment and trying to find ways to support.

No, I think we will be fine for a few months of lockdown. The problem comes when we reopen.

Let's hope that we eventually begin to see a decline in coronavirus and we can reopen our stores at the end of May.  It's at this point we may have some problems.  Although restrictions will have been somewhat lifted, social distancing will still be advised and people will be wary of catching the virus. This will mean that footfall in shops will be severely down. Maybe only thirty to forty percent of the usual footfall pre coronavirus, but it'll mean there’s much less money going through the tills. We’ll be open again so the patient suppliers will want paying for all their summer stock but we’ve not had a chance to sell it and they will want to deliver the Autumn ranges. The landlords will want paying, after all, you’re open, you’re trading. Lastly, your staff will be back at work and therefore there is no more support from the government to cover wages. All of this for possibly six months, with a reduced footfall of possibly thirty to forty percent. For many stores across the country this will not add up.

Support for the high street and your town centre has never been needed more. Organisations like the Harrogate BID are working hard to try and make Harrogate a great place to visit this Autumn but support from government, Harrogate Borough Council and the people of Harrogate is also needed. Without this we could see a very different looking Harrogate next year.