High street shops do have a future

May 13 2008 by jez Davison, Evening Gazette

AS the doors open on Stockton’s new Asda store on Portrack Lane, we asked independent Teesside retailers if supermarkets are death to high streets.

The Forum of Private Business has responded to a Competition Commission inquiry by claiming that the growing dominance of supermarkets has spun the independent retail sector into an irreversible decline.

But Teesside retailers are far more optimistic, even though some admitted the emergence of supermarkets near industrial parks was drawing people away from the high street.

Mark Pearson, of Pearsons TV and Electrical in Stokesley, said independent retailers could survive by offering ancillary services which supermarkets do not provide.

He said: “There is always room on the high street for companies that know what they are talking about. We offer a level of after-sales service which a supermarket could never compete with.

“We’re also a shareholder of Euronics, a non-profit-making buying group which allows independent electrical retailers to purchase goods from manufacturers at competitive prices.”

Jonathan Wheatley, founder of Stokesley-based IT firm MC Ware, said many of the town’s high street businesses were “doing very well” but proposed car parking fees in Stokesley town centre could drive consumers away.

He said: “The charges would have a significant impact on high street businesses, especially as customers already have the option of large retail outlets such as Teesside Park.”

Following an 18-month inquiry, the Competition Commission has insisted the future of small retailers is not under threat despite growing competition from Asda, Sainburys and Tesco.

But the Forum of Private Business (FPB) has hit back by citing evidence that suggests the opposite is true.

The group pointed out that since 2000, while sales in supermarkets have grown by 26% and by 19% in large convenience stores, specialist stores have seen only a 1% rise in sales.

But Tracey Surtees, marketing manager at The Mall in Middlesbrough, said more ‘sheds’ didn’t necessarily mean the death of the high street.

She said: “Although supermarkets have diversified into non-food products, there is still a future for high street shops that can offer that special purchase.”

“High street shopping is a social event where you can go for a coffee with your friends. Middlesbrough town centre is a densely populated area with a good mix of shops.”

However, some local businesses are feeling the heat.

Mohammed Hanif, owner of Charles Mini-Market in Middlesbrough, has been in the industry 26 years and said this was the most difficult time for his business.

He said: “Most small retailers in the area are struggling. They are having to work longer hours, employ fewer staff and don’t bring in the revenues to be able to invest in shop fittings and fixtures.

“The only way they can survive is if it is not economically viable for supermarkets to invest in their area.”

However, he added that it “would not be right” for the Government to impose trade restrictions on supermarkets if there was sufficient demand for their goods.

In contrast, the FPB is calling for the Government to introduce fairer contractual arrangements and clamp down on VAT-avoidance by supermarkets on items such as hot takeaway foods.

It believes the creation of an ombudsman to oversee a revamped supermarket code of conduct could provide small suppliers with some protection.