High streets weather the storm after a hard year

BIRMINGHAM’S high streets appeared to be weathering the retail storm as research suggested the city had a net loss of just one shop last year.

The annual report into the state of the nation’s retail sector suggests the opening of Grand Central in September 2015 cemented Birmingham’s place as a destination of choice for shoppers and kept them coming back last year.

According to the research, 45 shops closed in Birmingham during 2016 while 44 opened, meaning the city finished 2016 with 752 outlets.

Among the departures was Steel and Jelly and Jeff Bains, both at Grand Central, and the large BHS in New Street, one of several of the chain’s stores to close across the West Midlands after it fell into administration last April.

New openings in Birmingham included Ikea in the city centre, Primark at The Fort in Castle Bromwich and Paul Smith in the Mailbox.

The report, compiled by the Local Data Company and financial services firm PwC, also showed Wolverhampton, Nuneaton and Shrewsbury were the hardest hit areas in the West Midlands.

Bromsgrove, Hereford and Worcester all enjoyed a net gain in the number of stores operating.

Jewellers, coffee shops and chocolatiers continued to thrive in the West Midlands while fashion shops and department stores continue to be hit by the changing habits of consumers and the increased use of online shopping.

In 2016, the West Midlands suffered a net reduction in the number of shops of 60, up from a reduction of 19 in 2015.

Andy Lyon, partner and head of retail at PwC in the Midlands, said: “As the West Midlands becomes a go-to destination, we are seeing an appetite for coffee shops and tourist information, filling the void left by clothing shops, department stores and banks. Fashion is migrating to online at a faster rate than ever, leading to closures on the high street. 2017 will be a crucial year for retailers with prices on the up and less disposable income available to consumers, retailers will need to be versatile and savvy to increase footfall to their stores.”