Britain's High Streets Reach 'Crisis Point'

More than 50% of total consumer spend is now off British high streets for the first time in history.The shock statistic is revealed with the publication of a report compiled by retail expert Mary Portas.She has come up with a plan to rejuvenate Britain's ailing high streets, some of which she claims are in crisis.Her independent review, carried out at the request of Prime Minister David Cameron, also maintains that town centre vacancy rates have doubled during the past two years.She told Sky News high streets have become outdated and the key issue is increasing consumer foot-fall."The poor old high street has been neglected, there hasn't been a vision for it," she said.Faced with feedback from retail staff at a Rotheram market, she agreed more can be done to improve parking and tempt shoppers back from out-of-town shopping malls.She suggested councils have resorted to steep parking charges as a way of increasing revenue for cash-strapped areas but warned this has repelled shoppers.Ms Portas said: "I believe that our high streets have reached a crisis point. Unless urgent action is taken, much of Britain will lose, irretrievably, something that is fundamental to our society, and which has real social and economic worth to our communities. "I would like to state from the start that this report is not about pointing fingers of blame."While I do believe that there are many compelling instances where out-of-town retail has drained the traffic and shopping trade from our town centres, it would be naive and far too easy simply to think that they are to blame for the decline of our high streets."The fact is that the major supermarkets and malls have delivered highly convenient, needs-based retailing, which serves today's consumers well."Sadly, the high streets didn't adapt as quickly or as effectively. Now they need to."Ms Portas has called for change and recommends licensing rules on high street stalls be relaxed and that a national market day be introduced.She also wants free parking in certain areas, some form of high street management system to form coherent policies, as well as a review of business rates and shop rents. However, some councils have claimed they were not consulted by Ms Portas and so their input is missing from the review.Tom Ironside from the British Retail Consortium agreed there is much to be done. "There are some long-standing challenges facing the high street locations which include planning, transport, safety and security and also the cost of doing business in high street locations as well," he said."All of those need to be tackled if we're to get to a situation where our towns and city centres can thrive."He said new business rates could play a role in supporting new businesses but that they also need to be cheaper for all."At the moment they go up very quickly year-on-year and we want to see that take place in a much more affordable way." In the Worcestershire market town of Pershore, rates for small businesses have been frozen.Those small businesses with a rateable value of £6,000 and under will pay no business rates at all until March 2013.High street butcher Dave Goodyear said: "It has been a lifeline. Without that freeze, a lot of people would have sunk and gone under. But this is just what the independent trade needs." Tom Ironside from the British Retail Consortium agreed there is much to be done."There are some long-standing challenges facing the high street locations which include planning, transport, safety and security and also the cost of doing business in high street locations as well," he said."All of those need to be tackled if we're to get to a situation where our towns and city centres can thrive."He said new business rates could play a role in supporting new businesses but that they also need to be cheaper for all."At the moment they go up very quickly year-on-year and we want to see that take place in a much more affordable way." In the Worcestershire market town of Pershore, rates for small businesses have been frozen.Those small businesses with a rateable value of £6,000 and under will pay no business rates at all until March 2013.High street butcher Dave Goodyear said: "It has been a lifeline. Without that freeze, a lot of people would have sunk and gone under. But this is just what the independent trade needs."Despite the pressures of out of town shopping centres, supermarkets and the internet, Pershore is now fairing well.Ms Portas added: "The phenomenal growth of online retailing, the rise of shopping by mobile, the speed and sophistication of the major national and international retailers, the epic and immersive experiences offered by today's new breed of shopping mall, combined with a crippling recession, have all conspired to change today's retail landscape."New expectations have been created in terms of value, service, entertainment and experience against which the average high street has, in many cases, failed to deliver."The only hope our high streets have of surviving is to recognise what has happened and to provide something new."Retail consultant Kate Hardcastle told Sky News she agrees high streets are in crisis.In parts of Yorkshire, one in four independent shops have closed."This makes for a very bleak picture on the high street, you can imagine the consumer is feeling they don't want to go there, it doesn't feel like a great place to be," she said."The town centres are just becoming ghost towns," Ms Hardcastle added.High street brands have begun to slash prices to tempt Christmas shoppers after weak winter sales.According to the British Retail Consortium, the high street registered its worst performance in six months in November.Carpetright recorded a loss of £800,000 in the six months to October, compared to profits of £9.8m in the same period last year.But not all brands are suffering as much with coffee chain Costa reporting growth of 3.8% this year and plans for further expansion.Online shopping has soared with Amazon reporting 3m sales on "cyber Monday" up from 2.3m in 2010.