Retail veteran warns of 'death spiral' for shopping streets
Thursday 02 February 2012
A veteran retailer has urged the Government to reject Mary Portas's plans to save the high street, claiming many shopping streets are "in a death spiral".
Phil Wrigley, the chairman of Majestic Wine, who has held directorships at New Look, Debenhams and BHS, likened high streets to the shipbuilding industry and said many should be converted to housing.
In a speech at Oxford University, he said many shopping streets were "irrelevant to the needs of shopping today" as people chose instead to shop on the internet or at supermarkets and out-of-town malls.
He said the findings of TV star Portas's review into how to save the UK's high streets, which has an average of one in six shops empty, held the "right diagnosis, wrong prescription".
The self-styled Queen of Shops made 28 recommendations to the Government, including setting up national market days and "town teams" to get retailers, landlords and councils to work more closely together and introduce more free parking.
But Mr Wrigley decried the Government's efforts as "propping up a failing sector".
He said: "Unlike Mary Portas, I don't think we can continue to try and muddle through, supporting the traditional high street model."
He added: "There comes a point when the vacancy rate is so high that no new retailers will come in to a location because they don't want to be sited among empty shops. It is, in effect, a death spiral.
"There is some debate about where the threshold lies but it is probably between 20% and 30%."
Blighted high streets should be turned into housing, which would still have some shops but on a much smaller scale.
By 2025 out-of-town shopping malls and leisure centres would converge to become "leisure villages in which we take brief holidays", he said. The rise of the internet would herald fewer but larger stores.
In comments reported by the Financial Times, he added: "Retailing will never be the same again, but there is much to be gained from facing up to this fundamental and irreversible truth.
"In doing so, we might just create the space in which we can re-cast and revitalise our shopping centre communities."
- 1 Australia to impose 24-hour curfew on all cats to protect endangered species
- 2 Model's video shoot on the beach interrupted by sudden landing of a group of illegal migrants
- 3 The difference between a psychopath and a sociopath
- 4 MH370: Boeing 777 wing that could match missing plane found on the French island of Reunion
- 5 'Killer robots' with AI must be banned, urge Stephen Hawking, Noam Chomsky and thousands of others in open letter
Kate Winslet thanked 'particularly horrible' girl who bullied her at school after Titanic success
Israel accused of killing 75 children during day of 'carnage' and war crimes in Gaza war
Australia to impose 24-hour curfew on all cats to protect endangered species
Walter Palmer: Cecil the lion killer revealed to be American dentist
MH370: Boeing 777 wing that could match missing plane found on the French island of Reunion
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn – or a return to a Labour government
Labour leadership contender Jeremy Corbyn says 'we can learn a great deal from Karl Marx'
I am the Jeremy Corbyn supporter that many will tell you doesn't exist
Public anger after French sunbather beaten up by gang for wearing a bikini in Reims park
Labour leadership: New poll shows party is now even 'less electable' than under Ed Miliband
Labour leadership contest: I would never quit the party, says Liz Kendall
iJobs Money & Business
£20000 - £25000 per annum + competitive: SThree: SThree are a global FTSE 250...
£45 - £55k DOE: Guru Careers: A Financial Controller is required to join a suc...
£12500 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...
£22500 - £24500 per annum: Recruitment Genius: Inbound and outbound calls with...