Charity shops form new face of Shropshire high streets

According to the Grimsey Review, a detailed look at our changing high streets, it will be the latter.

And whether you're wandering up Pride Hill in Shrewsbury, through the centre of Wellington, up and down Whitchurch High Street or taking in Bridgnorth's High Town, you're almost certainly seeing this.

According the review by former Iceland and Wickes chief Bill Grimsey, published last month, the five key growth areas for high streets are charity shops, pawnbrokers, convenience stores, cheque cashing services, and nail salons.

They are replacing women's clothing stores, recruitment agencies, computer game shops, card and poster sellers and toy stores.

That's of course when shops are even being replaced. Shop vacancy rates in the West Midlands increased in 2012, hitting 18.5 per cent compared with 17.7 per cent the year before.

Nationally, vacancy edged lower from 14.3 per cent to 14.2, meaning the gap between the West Midlands and a level where it has parity nationwide is growing.

A recent study showed that the number of charity shops on Britain's streets has increased by 30 per cent over the last five years. But the Charity Retail Association, which represents the interests of charity shops across the UK, disagreed and says the rate of increase was between two and three per cent per year in the last five years.

The London-based body, whose board is formed from some of the top names in the UK's charity industry, says "third sector retail" is providing a vital role both for the most worthy causes in the country, but for the health of British high streets.

"In many cases, they are occupying shops that would otherwise be empty, and are helping keep high streets alive by encouraging customers into the towns," said Wendy Mitchell, the group's head of policy and public affairs. "We are seeing more retailers move off and out of towns or onto the internet, and it's good that charities are in town centres in that respect as well.

"They are providing a service in terms of low-cost, high-quality items, particularly at a time when many people's living standards are squeezed and they don't have as much disposable income."

Across the country charity shops produce annual profits of £290 million for their organisations of choice. The British Heart Foundation is the biggest chain, with 732 shops making profits of £31.3 million from sales of £161 million. Behind the BHF comes Oxfam (700 shops, £88.7 million of sales, and £20.1 million in profit) then Cancer Research (which generates £14.1 million from £69.2 million of sales in 550 shops).

Ms Mitchell said: "They do get business rate relief in light of their social benefit, and everything they are raising goes to a whole range of charities. We have done a lot of consumer research, and people value the prices they pay, they like helping charities, and they see them as a bit of a treasure trove in terms of looking through and finding unique and special items.

"We know they are popular with the public and are unique to Britain."

She added: "Small businesses do get rate relief as well, but we would be the first to recognise that more could be done to support them in business rate cuts.

"Extra rate relief is something we wholeheartedly support, as it's vital to charity shops we have a healthy high street. The Welsh Assembly is considering proposals that would reduce rate relied, and that would cost the charity sector millions of pounds and would be enormously damaging."

Helen Dickinson, director general of the British Retail Consortium, has also backed action on business rates, adding: "There is a growing consensus that the business rates system is no longer fit for purpose," she said. "The single most important step towards reviving high streets and boosting retail jobs across the country would be a complete reform of the system.

"Business rates force retailers to pay disproportionately more tax than other sectors. They are less competitive than property taxes in other countries, distort occupancy costs and lead to vacant shops."

Improving signs for the UK economy have done little to aid the fortunes of the struggling shops.

Year-on-year, footfall was down by 0.9 per cent in July. Shopping centre locations were particularly badly hit with a 2.2 per cent decline in passing trade. On the high street, footfall slid 0.6 per cent.

Overall, across the last three months the number of people hitting the high streets has risen by 1.1 per cent since the same quarter last year. But the drop in shopping over the 2012 Olympics mean that improvement is almost null and void.

Telford & Wrekin Council has begun an audit of its retail centres. With the exception of Telford Shopping Centre, Wellington is regarded as the one performing the best.

But quick stroll around the town quickly demonstrates that a striking number of Wellington's retail units are occupied occupied by charities.

Katherine Kynaston, the council's business and development planning manager, insists Wellington's strength is its diversity.

She said: "The study is looking at our existing centres, which are the strongest, and what the potential is for them to take more retail and leisure development, asking what they need to support that growth and development.

"The range and diversity of Wellington's shopping street, the footfall that's going into the area, and the draw it has for people to come in and use its facilities are what make it strong. It's an important retail centre with a wider range of shops and opportunities with the market, and it provides for a far wider catchment."

On the subject of the number of charity shops in Wellington, Mrs Kynaston added: "I'm not saying the centres are perfect, or that there isn't a need for investment and support.

"We do need to look at how to diversify, and address empty properties in the high street.

"The number of pawnbrokers and charity shops is reflected across the country and across Shropshire, and if we can develop a greater understanding of how the centres are operating and what range of provision there is, we are in a better position to provide opportunities.

"The town centre development is critical to attracting people into the borough, it's a magnificent offer. Hopefully, if it gets people into Telford they will visit the other centres, and the smaller centres can also cater for local people.

"Madeley, Newport and Ironbridge all have a different offer, and hopefully we can get people to come to Telford and to those centres."