High St needs regulation relief and big brands

British Retail Consortium chairman, Luke Mayhew, has called on the UK government to lift the regulatory burden on retailers and criticised local opposition to big brands occupying high street premises.

In his speech at the BRC Annual Retail Symposium last week, Mayhew (left) included alcohol in a list of retail categories facing uncertainty or obstruction as a result of current and proposed government regulations.

Calling on the government to introduce a “one-in-one-out” approach to regulation, he observed: “My concern is that when it comes to delivery there seem to be conflicting government policies; policies pulling in different directions – with business, and in particular, retail stuck unsure in the middle.”

Mayhew’s concerns were exacerbated by the government’s shift to allow local areas to decide their own regulations; a move which he warned would “greatly increase the likelihood that retailers will face multiple regulations on a single topic.”

In particular, Mayhew voiced his fears about the negative impact of excessive regulation on the fortunes of the UK’s struggling high street, arguing: “Multiple regulators also lead to uncertainty and all my experience says that uncertainty leads to more cautious investment – and that is not good for the country and it is certainly not good for the high street.”

Attributing the consumer shift towards out-of-town and online shopping to their relative convenience, Mayhew called on high street retailers to adapt accordingly.

“The high street cannot afford to stand still,” he warned, observing: “Consumer behaviour and trends cannot be socially engineered – the high street needs to prove itself an attractive option in its own right. It needs help from us all and political change to do that.”

As part of this rejuvenation of the UK high street, Mayhew criticised the widespread mood of hostility towards larger brands occupying shop space.

“High streets most critically need footfall,” he observed. “Brands attract business whether the brands are products or shops. Independent stores provide choice, innovation and variety for shoppers but the vast majority of high streets will not be saved by independents alone.

Offering further praise for the big retailers, Mayhew noted: “They have managed to open new stores, attract investment and create jobs despite the downturn.

“To regard the success of these large businesses as in some way sinister is ridiculous. Instead let’s use their growth as the catalyst to revitalise our town centres and provide the right environment for businesses of all kinds to thrive.”

Gabriel Savage, 13.06.2011