Tourism and Regeneration Overview and Scrutiny
Committee:
25th September 2008
AGENDA ITEM 7
RETAIL ECONOMY
1.0
Matter for consideration
1.1
The Committee to consider an update report outlining Blackpool’s retail economy.
2.0
Recommendation(s)
2.1
To note the update report, asking questions in relation to its content and making
recommendations as appropriate.
2.2
To consider undertaking a scrutiny review of Blackpool’s Retail Economy to identify
key issues and ascertain recommendations for improvement.
3.0
Summary of Key Issues
3.1
Background
3.1.1
With 18 per cent of Blackpool jobs being in retailing and distribution, this is a critical
element of the town’s economy.
3.1.2
Blackpool’s retail economy has changed substantially over the last 30 years, from a
sector dominated by the Town Centre and its department stores as well as a buoyant
retail economy in the main tourist areas, to a stagnant town centre and a depressed
retail economy within the main tourist areas but with a relatively buoyant out-of-town
retail sector dominated by the food superstores and the retail parks.
3.1.3
Two current studies into the state of retailing within Blackpool have been produced to
inform the development of the Core Strategy of the Local Development Framework
and the Town Centre Strategy.
3.2
Retail Capacity and Catchment Analysis
3.2.1 On behalf of Blackpool Council, Savills plc produced a major retail capacity study to
inform the Local Plan in 2004. This has recently been updated by White Young Green
as part of a wider study on behalf of the three Fylde Coast authorities for their Core
Strategies. Some of the headline findings of the White Young Green Study are:
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77 per cent of main food shopping trips on the Fylde Coast are to nine food
superstores, most significantly to Tesco (Clifton Retail Park), Morrisons
(Squires Gate) and Asda (Cherry Tree Road). Only 3 per cent of such trips are
to Blackpool Town Centre.
33 per cent of non food bulky goods shopping trips are to Blackpool Retail
Park, 21 per cent to Blackpool Town Centre, 15 per cent to Preston and 31 per
cent elsewhere;
Only 34 per cent of non bulky goods Fylde Coast shopping trips are to
Blackpool Town Centre, with 27 per cent to Preston;
Current turnover of food stores in Blackpool is £213 million;
Available expenditure for food spending is £203 million;
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Small future increases in food spending are predicted;
Current turnover of non food stores is £470 million;
Available expenditure for non-food shopping is £470 million;
Large future increases in non-food spending are predicted, however the
Internet will be a major influence.
3.3
Blackpool Town Centre Commercial Analysis
3.3.1
Retailers themselves do not rely on local authority capacity studies in making their
investment decisions. The main factors are company and local authority planning
policy, the nature of the place and quality of the store/site, the characteristics of
shoppers, footfall, levels of competition, image and company logistics.
3.3.2
Larger retailers will have their own in-house commercial planners. Others take advice
from commercial retail consultants. With this in mind, the Council has appointed Jones
Lang La Salle to provide commercial advice on the future prospects of the retail and
other business sectors and the individual retail areas of Blackpool Town Centre. Some
of the headline findings are:
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In recent years, there has been a significant decline in Town Centre use due to
an inadequate retail offer, loss of visitors to competing centres and a
perception of rising crime and anti social behaviour;
Blackpool’s UK retail ranking slipped from 57th in 1995/96 to 90th in 2007;
14.5 per cent of town centre retail units are currently vacant (North West
average is 11.2 per cent);
Blackpool Town Centre’s total market share within its potential catchment is 30
per cent. It’s market share within the Blackpool urban area is 71 per cent and
although this is relatively high, disposable income is low;
Average weekly pay of Blackpool employees is only £362, compared to the
national average of £464.5. In Fylde, it is £564.
Blackpool Town Centre shops are heavily skewed towards catering for less
affluent customers. This means that a large proportion of the wider retail
catchment population and visitors preferences are not being met in the Town
Centre;
Food shopping in the Town Centre is weak;
The Town Centre must aim to provide a more balanced retail offer;
The Town Centre needs to differentiate itself against other shopping centres in
the region .
3.4
South Beach and Foxhall
3.4.1
Blackpool’s retail challenges are not only restricted to the Town Centre. In support of
the Action Plans being produced for South Beach and Foxhall, the respective evidence
bases have highlighted the widely recognised difficulties of retailing in these areas.
Too many small stores, many of dubious quality, operating on annually reducing
turnovers are leading to high vacancy levels, a lack of investment and a general air of
decay.
3.5
The response
3.5.1
Although trends in retailing over the last three decades have been particularly
challenging for Blackpool’s traditional centres, this is not only a Blackpool
phenomenon and has been repeated throughout Britain. With the support of national
planning policy that has for some time supported traditional centres, many cities and
towns, particularly within the more flourishing and affluent parts of the country, have
bucked the out-of-town trend and are now strong shopping destinations allied to a
range of other attractions.
3.5.2
Blackpool has also been promoting a policy of support for its town and local centres for
some years, most recently encapsulated within the 2006 Local Plan. The Town Centre
is now seeing some of the fruits of this policy through the attraction of major stores
such as Debenhams and Primark and the expansion of the Houndshill.
3.5.3
The Talbot Gateway development is also planned to be a significant extension to the
Town Centre’s retail economy. Further Town Centre retail schemes will also be
promoted through the proposed Blackpool Town Centre Strategy and by the Core
Strategy. Together with wider improvements to the Town Centre, such as parking and
public realm schemes, these initiatives should help to re-claim visitors and boost
Blackpool’s position in the retail rankings.
3.5.4
Within the resort neighbourhoods, the nature of retailing will have to change if they are
to survive as retail centres. A range of initiatives will be brought forward within the
respective Action Plans for these areas that will seek to provide the differentiation
necessary for successful regeneration.
4.0
Witnesses / representatives
4.1
As requested by the Committee members, the following persons have been invited to
attend the meeting to speak on the matter:
 Doug Cooper, Head of Development Plans and Projects
Relevant officer:
Doug Cooper, Head of Development Plans and Projects
Tel: (01253) 476240, e-mail: doug.cooper@blackpool.gov.uk
Appendices attached:
None.
Background papers:
None.
Websites and e-mail links for further information:
None.
Glossary:
None.