So HOF (no, not him) are closing a huge amount of stores and laying off 6000 staff. Only yesterday did I read that Amazon were looking at employing another 2700 staff here in the UK. Clearly far fetched to think HOF staff will end up at Amazon, but it surely must begin to question the business rates for high street retailers and their subsequent impact. Apparently one store in London for HOF cost them upwards of £4m in business rates alone, before even ringing one item through the til. Surely scrapping or heavily reducing business rates would level the playing field against online shopping, create and maintain more jobs, also improve the level of overall disposable income as high street goods would arguably be cheaper (web priced or not far off) The more goods sold the more vat, the more people in work on the high street the more HMRC make. Are business rates an old tax that simply don't gel with modern times?
But if the Government proposed abolishing business rates how would that go down with the public? No rates on a multi-million pound shop in the centre of London but I still have to pay Council Tax on my home? Add in that the lost revenue would have to come from somewhere e.g. Council Tax, VAT, Income Tax, all paid by the public.... Not saying it's a bad idea, just a hard sell.
The ways people are shopping have changed - anyone remember busy weekly markets? The rents on the high street remain exhorbitant yet the footfall is in freefall. Plus the car parking is inconvienient and expensive. Shopping in towns is like sending letters by mail - useful occasionally but mostly avoided due to other easier simple alternatives. I rarely, if ever go shopping in the city centre. The last time was when I accidently smashed my 'phone and wanted a replacement immediately. Otherwise online everytime. I'm sorry for all the people who work at these stores & banks.
My sons office is in a building owned by his boss, the building also houses a vegetarian restaurant, a hypnotherapist and another firm of which I can't remember , the building is centrally located in town and pays no business rates at all. Steve
Town centres are dangerous places, drunk chicks running riot beating everyone up. Na, not for me, I’m usually home before it gets dark
Yeah, it's a shame isn't it. Markets have changed but I live in a market town that doesn't allow any brand chains in and so you end up with crap coffee shops that charge £3 for a cup of filter coffee and in one of them they have 'pilchards on toast' on the menu.. Hardly moving with the times. I have a mate that has a really cute independent florist and it's a struggle. can't help but think it's a mixture of reducing business rates and making sure that businesses embrace e-commerce. I.E if I wanted to open a little bike shop, I would be making sure that my eBay store, my Online eCommerce shop etc is well established and has a 'run rate' prior to actually opening the shop, and then it would really only have a small selection of items for people to come and pick up their online orders or try some limited lines or services such as bespoke suit measuring etc.
High streets are crap. If we want to do any bricks and mortar shopping, it’s at an industrial park or retail park. Parking is free and plentiful. High streets are basically anti vehicle and the design is such that the two shops you want may be opposite end so why bother.
Agree, I think the only way small shops can survive is to use the shop as storage and packing facility and a ‘shop front’ for passing or local trade.
Heartfelt sympathises for all the staff who are affected by this, it sucks. None for the management and owners who haven't invested in the business or moved with the times. Heck, Amazon launched in 1994, it's not like they didn't have forewarning and time (like 24 years) to adapt to market changes. The two largest overheads most business have is payroll and rent/rates. Councils have been increasing business rates greater than inflation for years, this year some have doubled rates. As councils make more money p.sq.ft from personal council tax they'll be only to happy to see the properties turned in to flats. As will landlords who'll do nicely from increased annual service fees and ground rent. HOFs owner is a Chinese based business (Nanjing Cenbest) who are transferring 51% to a subsidiary (C.banner) for a consideration of £150m (?). Read in to that what you will.
There's been a huge change in business rates lately and the way they're calculated. Smaller, low value premises get varying degrees of relief, down to 100%, but the larger premises have been revalued and the costs have rocketed. A friend of mine was third generation in a family Jewellers. They were just inside the square footage for a re valuation. Their rates increased 160% and he closed it. A new start up has gone in selling E-cig stuff and as such, gets a year FOC! My mate employed three people who all lost their jobs. The guy in there now is on his own. When his year freebie is up, he'll be off....... Two much bigger stores in town immediately closed when the rates went up by a similar amount and 40+ lost their jobs. Both are still empty. Whoever owns them is responsible when they're not occupied, so the next thing will be demolish them..... that's why so many old factories/pubs have been levelled. Our high street, like many others, is filled with charity shops who are exempt. It's crazy. The council have to accumulate revenue so they hit the remaining businesses harder... It's a vicious circle and they can't, or don't want to see what's happening. If the rates were reasonable, they'd be full of people earning, paying NI and tax and feeding the local economy. Online is booming because the high street is being killed off. Given the choice, I'd much rather see what I'm buying before handing over the cash.
