Not yet high noon on the high street

Dec 1 2008 by Ben Guy, The Journal

GLOOMY economic conditions and predictions of an extended period of recession could leave small independent shopkeepers fearing the worst.

And with some of the biggest names in retail, such as Woolworths and MFI, hitting hard times what hope can there be for the individual boutiques on the region’s high streets?

But a walk down Gosforth High Street shows businesses are battling back through a combination of clever marketing and flexible working.

Butchers are getting out on to the street to lure in more shoppers with free samples, a clothes shop has added a sale-only area upstairs, and a charity shop is focusing on window design and late-night shopping.

Kate Walton, owner of the Have to Love clothes shop, feels the media portrayal of what is actually happening on the UK high street is inaccurate.

She said: “We’ve actually had an increase in trade and as a result we are extending our hours for Christmas.

“We will be open on Christmas Eve for the first time ever.”

Jeanne Lally, commercial director of the Travel Bureau, an agency specialising in luxury, tailor-made holidays, is more cautious.

She said: “Our prediction is that next year will be quite tough and we’re certainly not going to be extravagant. We will be refurbishing and we have invested in a new website, but we have also taken steps to make sure that we are sensible with our costs and save money where we can.”

Warren Myers, the director of Roots hairdressers, agrees. He said: “After Christmas – a usually quiet time – will be the real test.

“Business picks up again in February, so that’s when we will see the effect of the credit crunch.”

Peter Waugh, lay assistant at Trinity Church, says there was a real sense of blitz community spirit on the high street as people gear up for tougher times ahead.

He said: “One or two people have expressed concerns about the future, particularly with Christmas coming up.

“One of our members has just been made redundant and I know several people who worked at Northern Rock or had money in it.”

The recently refurbished church, which has a centre offering a wide range of activities and a coffee shop, has become a focal point on the street.

Mr Waugh added: “People can come in, find activities, or just sit and talk about their worries.”

He said that the arrival of Sainsburys, which opened in August last year, had also helped bring a bit of life into the area.

David Bonner, regional secretary of the North East Federation of Small Businesses (FSB), which has more than 4,000 members, said the organisation estimate that at least 15,000 shops will disappear over the next three years.

Rising costs of materials, car parking charges and banking problems are among their key concerns.

John Wright, national chairman of the FSB, wrote a letter to Chancellor Alistair Darling ahead of his Pre-Budget Report asking for a £1bn small business survival fund to help save businesses and jobs.

In his report last week, the Chancellor declared a 2.5% reduction in the standard rate of VAT.

The revised standard rate of 15% will be introduced on December 1 and will remain until January 1 2010.

The unanimous verdict from Gosforth’s traders was that this was not enough.

They all believed the government could do more to help put money back in people’s pockets.