Much has been written about the difficulties facing high street retailers. This year there have been a number of notable casualties including JJB Sports, Clinton Cards and Game.
A combination of factors, not least the adverse economic conditions, has been blamed for the decline of our town centres. The subject has provoked debate, a government backed report and subsequent intervention aimed at reversing this alarming trend.
But if times are hard for high profile players like Comet, how are high street independents faring as the economic uncertainty continues? While there are many who are thriving, others are struggling to keep their heads above water as a lack of consumer confidence and rising costs threaten to overwhelm them.
The declining fortunes of a Sheffield café provide a snapshot of this situation and illustrate the problems facing independents everywhere.
Last week Cream, in the suburb of Broomhill, was forced to close its doors for the last time. The café was opened in 2007 by Michael Robinson, aged 41, and his wife Mette. Over the five intervening years trade has dropped by 25 per cent, Mr Robinson explains. He adds that, while the café was usually busy, customers were not necessarily spending a great deal of money.
On top of this, the costs of heating and lighting have risen considerably over the corresponding period. So too has the price of coffee and sugar. But the biggest single factor cited by Mr Robinson for the closure of Cream is the escalation of business rates.
“Rates have gone up year on year,” Mr Robinson says. “But last year’s rise of seven per cent was the biggest and most noticeable. “
This pushed up Mr Robinson’s bill to more than £20,000, he claims, and it was the straw that broke the camel’s back. He appealed but was told his business rates were reasonable, making his position “unsustainable.”
However, there is a sub-plot to this story that guarantees the property will not be unoccupied for long. In what many independents may see as an all too familiar twist, Mr Robinson has sold the 10 year lease to Costa Coffee.
He reveals that the chain have been seeking to buy the lease for the past three years and told him they would open a branch opposite if he didn’t sell.
“It was a question of do we cling on and stay here knowing that, and see our trade decrease even further?
“Or do we finally take the offer and cut our losses? We didn’t want to, but it had to be done,” he said.
Do you think coffee chains are to blame for the closure of so many independent cafés or are they simply better at providing customers with what they appreciate?
And what about business rates? Do you think rates relief for small businesses should be extended to help independent retailers through these difficult times? Share your thoughts with us below.
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