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Indie StreetSupporting the independent

retail sector in Leeds

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Supporting Independent Retail in Leeds Final Report

Supporting Independent Retail in Leeds

Leeds City Council, working with Leeds Metropolitan University (Leeds Met) and other key stakeholders is seeking to support the growth of the independent retail sector. Drawing together its work with landlords and business support providers, the Council is seeking to deliver a real step change in the local economy in one of the key sectors identified in Leeds’ economic growth strategy. The project has been undertaken utilising Leeds Met’s Business Enhancement Scheme, which enables businesses to make use of the resources available at the University. Leeds Met source a recent graduate who, for a specific period of time and whilst employed by the University, will work full-time in the company. In addition, the company and graduate will be given support from academics with expertise in chosen fields. The work described in this report was undertaken by Jess Nichols of Leeds Met, supported by Prof Cathy Barnes, Katie Rigarlsford and Janet Mulcrone, during a 6 month placement with the economic development department of Leeds City Council. For the purposes of this study we have used a definition of independent retail as those retailers who have 5 outlets or less. This focuses our work on small local retail businesses. Other definitions of independent range from one outlet only, through to any retailer which is not a publicly listed company. In Leeds City Centre, the largest concentration of independent retailers is in Kirkgate Market, where the 285 retail businesses in the indoor market are, with a handful of exceptions, independent by this definition. We have chosen to put the main focus of our work on independents outside of Kirkgate Market but within the central shopping area of the city centre.

This report sets out the findings of research undertaken between November 2012 March 2013 into independent retail in Leeds and the business support that is available to new shopkeepers. Our recommendations are aimed at identifying ways to develop and to support the independent retail sector within the city and, in particular, start-up companies. Our vision is that independent retailers would then work in tandem with the large shopping centres to help create a unique retail personality for the city, with a distinctive and diverse offer, attracting visitors and benefiting all concerned.

Leeds City Council i April 2013


Leeds City Council ii April 2013

CONTENTS

1 Executive Summary..........................................................................................1

2 Introduction.......................................................................................................3

3 Business Incubation and Retail.....................................................................10

4 Independent Retail and Local Authorities ....................................................22

5 Independent Retail in Leeds ..........................................................................26

6 Business Support for Independent Retail Start-Ups ...................................34

7 Conclusions ....................................................................................................43

8 Recommendations..........................................................................................44


1 Executive summary

The findings outlined in this report are based on primary and secondary research undertaken as follows:

- extensive desk-top research into models of retail support in Europe and the

US, the retail scene in Leeds and the existing support programmes for retail that are available in Leeds

- a survey of independent retailers to enable us to better understand the perceived needs of retail businesses in the city

- thoughts and opinions of experts and others experienced in this field gathered through meetings and interviews

We have found independent retail in Leeds to be in relatively good health. Beyond the 250 or so independent retail businesses in Kirkgate Market, there are 200 or so independent outlets in Leeds city centre and many hundreds of independent stores in the town and district centres across the wider metropolitan area. While there are challenges for the independent retailer in Leeds, not least the cost of city centre premises, the city continues to attract many shoppers and is strengthening its position as the regional retail destination of choice. The recent opening of Trinity Leeds will, we believe, provide significant opportunities for city centre independents to thrive and grow. There is a limited business support offer for retailers. National retail organisations such as the British Independent Retail Association (BIRA), the Retail Trust, and the National Market Traders Association provide use assistance to their members. There are a handful of specialist support providers in the private sector. Local universities, in particular Leeds Met, are keen to work more closely with the sector. As a council we know we can do more to link retailers with this support, and that our influence on property development and place making can also help independents to start and grow. Leeds has a strong business incubation offer, led by the universities and colleges. Facilities such as QU2 at Leeds Met and Inc Enterprise at Leeds City College provide incubation space to office-based businesses backed with top class support and advice. This support and advice has also been accessed by retail businesses and there is scope to expand the availability of the offer. Leeds Markets provide many opportunities for new retailers to test their products and skills, backed with tiered rents to help in the early stages. Private and third sector specialist retail incubation is a growing part of the city centre offer with stores such as Fabrication and The Stalls utilising pop-up space when it is available, and a new private sector venture – Handpicked Hall – due to launch in summer 2013. We have identified a range of further actions and steps which might help:

Provide an easily accessible and up-to-date source of information on business

support available to independent retailers through the Council website.

Continue to support the city’s independent retail incubators, strengthening links with public sector incubation:

Leeds City Council 1 April 2013


- Assist with recruitment of tenants to existing incubators and work in a more co-ordinated fashion with other relevant stakeholders and organisations which may offer opportunities that are mutually beneficial.

- Continue to support co-working with Leeds Met through student placements and potential Business Enhancement Schemes within retail.

- Strengthen links with the National Retail Skills Academy hosted by Leeds City College at its Horsforth campus.

Keep track of the changing retail climate in the city centre and seek

opportunities to help independent retailers

Continue to develop the city centre shopping environment to reflect the customer experience being offered by the large shopping centres.

o The research has demonstrated the importance of the shopping environment to successful retailing and thus, more should be done to the city centre retail areas, with the aim to make them both more visually appealing and consumer engaging.

o This might also include using vacant shop windows and similar for community projects, such as the previous Art in Usual Spaces or Playful Leeds.

Strengthen existing work with Landlords and raise awareness of the advantage

of pop-up shops and their place in the modern high-street Continue our work with retailers, centre managers, agents, landlords and

Tourism, including specific strands of activity promoting the independent retail offer of the city

Consider the commissioning of a second study which would look into the

independent retail within neighbourhood shopping locations and/or town and district centres in Leeds.

o In developing the Leeds economy, our work applies across the whole metropolitan district of Leeds. We will need to adapt our approach to the local circumstances found across the diverse communities that make up Leeds. Supporting independent retail in areas as varied as Armley, Otley, Wetherby and Hunslet is likely to require a range of approaches and a further study would underpin the development of retail support across the whole of Leeds.



2 Introduction

Leeds City Council and Leeds Metropolitan University have been engaged in a research project to better understand the independent retail sector and its business support needs, especially within the city centre of Leeds. The project also reviewed models for the incubation of retail businesses and considered the potential for establishing such a facility in the city. Extensive desk-top research has been undertaken into models of retail support in Europe and the US, the retail scene in Leeds and the existing support programmes for retail that are available in Leeds. Mapping of the distribution of independent retail in Leeds city centre has been supplemented with an online survey of independent retailers to enable us to better understand their perceived business support needs.

A series of interviews have been held with key stakeholders, including retail support organisations, independent retailers, Council officers and academics. A review of the current business support offer to retail businesses and pre-starts has been supplemented with an online survey of retailers. With the support of a steering group comprising Leeds Met, Leeds City Council, Leeds Chamber of Commerce, the managers of the Corn Exchange and the Victoria Quarter and a retail graduate of QU2, we have drawn conclusions for how the city can better support the development of independent retail businesses.

2.1 Definitions 2.1.1 Independent retail

For the purposes of this study, an independent retailer has been classed as a retail business which has 5 or less stores. A retail business has been defined as one which provides products or personal services to the general public as the main arm of the business model, but on a small scale, as opposed to wholesale to other businesses. We have also drawn a distinction between independent retailers and independent food and personal service outlets.

2.1.2 Incubation

A business incubator is a programme, or space, designed with the intention of accelerating growth and increasing sustainability of a business. It does this through an array of business support services which might include; a physical space, capital, coaching, training or common services. Business incubation is a familiar concept, which has been applied with particular success to encourage the growth of new business, especially those specialising in new media. Retail incubation is a far less tested concept. This report aims to seek out and evaluate existing models, both here and abroad, to identify best practice. It also explores the feasibility of running a project of this kind in Leeds as part a strategy to encourage and develop the independent retail sector.



Examples of public sector business incubation in Leeds include Leeds Met’s QU2 facility, inc.enterprise, part of Leeds City College, and Leeds University’s Spark programme. Outside the public sector, facilities such as Shine in Harehills, Hillside Business Centre, and Unity Business centre provide a combination of traditional business space and specialist incubation support for fledgling businesses.

2.2 Leeds Retail in Context

Retail is one of the seven target sectors in the Leeds Economic Growth Strategy:

“Moving forwards Leeds will create a distinctive retail offer, with opportunities for independent and small traders to open shops and succeed. Building on the existence of the country’s largest indoor market, we will marry the need for independent shops to our natural entrepreneurial flair.” – Economic Growth Strategy for Leeds, November 2011.

Leeds is already one of the UK’s leading retail destinations but, in line with national trends, has experienced a year on year decline in footfall. Prolonged recession and weak consumer confidence, as well as competition from online retailers and ‘out-of-town’ shopping centres, are some of the main reasons for this. Meadowhall, Trafford Centre and to a lesser extent, the White Rose Shopping Centre, all provide competition for the city centre, offering shoppers free parking, protection from the elements, and a more consistent pattern of opening hours.

Leeds is the third largest employment centre for retail in the UK. In 2011, there were 32,900 people employed in retail, approximately 8% of Leeds’ workforce. This total has fallen by 11% since 2008, when 36,800 worked in the sector. According to the 2012 GOAD central report, prior to the opening of Trinity there were 957 retail outlets across 2,293,600 sq ft of retail floor space in the prime shopping area of Leeds (excluding Kirkgate Market). Footfall statistics demonstrate a considerable drop in the number of people in and around the city centre since 2008. The following figures are annual ‘Leeds City Centre Weekly Footfall Total from ‘Week 43’ of the calendar since 2008.

Year Footfall Figures, week 43 2008 1,670,000 2009 1,500,000 2010 1,500,000 2011 1,117,000 2012 1,000,000

This data is collated from seven cameras which are placed around the city centre. Whilst the figures from week 43 show a drop between 2011 and 2012, the overall figures across the two years are broadly similar. Indeed, recent figures for the weeks following the opening of Trinity indicate that the footfall has risen by 10% overall. Nonetheless, we do not expect the number of shoppers to return to the levels seen in 2008.



Trinity Leeds, the £350 million retail and leisure development by Land Securities, opened in March 2013, and the proposed Victoria Gate development by Hammerson, will drastically change the Leeds retail landscape. A £12 million refurbishment of Leeds Kirkgate Market aims to revitalise the facility as a retail environment for the 21st century and beyond. Whereas the heart of retail in Leeds city centre is currently focused on Briggate, once these new centres are operational, the centre of gravity is expected to shift significantly. It is also hoped that both developments will significantly increase the retail draw of the city, bringing additional footfall to Leeds which will benefit all retailers. Overall we expect that Trinity will attract more footfall and enable Leeds to increase it’s catchment area of potential consumers. This will create opportunities; by virtue of it’s in town location, for other retailers in the city centre, including independents. It will also create challenges for other parts of the city centre as it is inevitable that some retailers will move into Trinity from existing city centre locations. The challenge is for the independent sector to exploit the opportunities of increased city centre footfall and dwell times, as well as helping parts of the city centre respond positively to challenges posed by the changing retail environment in Leeds.

Independent retail is vital to establish and maintain the city’s individual personality, making it a shopping destination for both locals and visitors alike, which is important in a time of ever increasing sameness on the high streets of Britain and the increasing dominance of out-of-town retail offers. Leeds is undergoing a period of investment in the city centre, encompassing retail and entertainment, which will improve the city centre and hopefully attract more people and spend. Over the coming 5 years, key developments will include:

Leeds Arena (2013) Trinity Leeds (March 2013) Eastgate Quarter (planned 2016) Merrion Centre (New Front – Arena Quarter) Lower Kirkgate (Proposed) for Independent Retail

Further one-off events such as the start of the Tour de France in 2014 will also draw visitors and shoppers to the city centre, and it is this mix of leisure and retail which will underpin the performance of our retail offer, including independents.

2.3 Retail in 2013

This section summarises the current retail scene including the main issues, recent changes and the effects of developing technologies and changing society.

2.3.1 Age of Austerity

The world economic climate has had a major impact on retail in the UK, both on high street stores and on independent retailers. As consumers are increasingly tightening their purse strings and spending less, the high street shops have begun to diversify and slash prices in a bid to retain custom. Marks and Spencer have



opened their own bank, the Supermarkets sell almost anything they can house in-store, and most large retailers offer store cards or other financial services as basic.

The ‘food giants’, have been particularly successful at diversifying and slashing prices (which has caused some controversy, for instance, the recent ‘milk scandal’ which saw farmers take a stand against plummeting prices). The ‘food giants’ are putting a huge amount of pressure on other large high-street chains who are struggling to compete, by selling similar products at increasingly low prices. Two well-known examples of this would be Jessops and HMV, both recently entering administration, competing with supermarkets now selling electronics and entertainment. If high street chains, with household names, are struggling to survive, how are independents are expected keep up?

As well as impacting customer spending, the recession has also increased running costs. Rates, utility bills and wage increases are also squeezing the margins and making profit margins tighter. Larger chains are closing their less achieving multiples, moving trading online and cutting jobs to help combat these issues, but whilst the larger retailers may be able to absorb the extra costs and take measures to protect themselves, the independents are being hit hardest by these rising costs.

2.3.2 Ecommerce

There is no question that austerity has played a major role in the changing face of retail but it is not the only contributing factor. The internet now plays a massive role in retail, internet sales are now estimated to account for 8.5 per cent of all retail sales values excluding automotive fuel. These developments show no signs of slowing; figures from the Office for National Statistics show that internet sales values in March 2012 increased by 15.2 per cent compared with March 2011.

Independent retailers may not necessarily have the skills or resources to set up and then run a website, never mind the extra services now being offered as standard by the larger companies. Furthermore, it is no longer enough to simply have a website for online-ordering, but the website has to look professional and be easy to navigate and have good search engine optimization (SEO). Getting a website to this standard takes real skill and if an independent retailer does not possess it then it is another large cost, professional web design, which small retailers cannot necessarily afford.

Retail no longer only utilizes website ordering but also other online services, such as ‘reserve and collect’ which has been a successful way of expanding sales for the large retailer Argos. (Check and Reserve accounted for 29% of Argos' £819m sales in Q1 2012). This service has proven successful due to convenience and ease and use, making it very easy for people to do their shopping wherever and whenever they please, and then collecting the products at a similarly convenient, self appointed, time. For the independent, there is a plethora of options available to establish an online presence through third party platforms. To name just four such sites, Ebay, Etsy, Asos, and Folksy all provide options to establish an online presence without the retailer having their own eCommerce website.


http://www.homeretailgroup.com/news-and-media/news.aspx?smltype=2105&smlbus=1690&article=4133

http://www.homeretailgroup.com/news-and-media/news.aspx?smltype=2105&smlbus=1690&article=4133


2.3.3 Social Media

The biggest development within recent years has been the explosion of Social Media. Facebook, Twitter, Pinterest, Tumblr and Linkedin all can be used to promote business, events or products in their own unique ways.

Most chain retailers have at least a dedicated, official Facebook Page (to be ‘liked’) and a twitter account (to be followed) as these are the two most used forms of social media. (Although it must be noted that ‘Tumblr’ has broken into the top ten websites in USA, which may foreshadow a rise in popularity here, in the UK.)

Social media is being used as a tool to encourage both online and offline spending by consumers. These formats are being used to advertise products or existing discounts, or perhaps offer exclusive discounts to social media users. This is a particularly useful tool in engaging younger consumers from the ‘social media generation’.

The engagement of social media and new technologies can be more difficult for those business owners from older generations, who have been in existence longer than the technologies have existed. These business owners might not have the opportunity to learn, perhaps due to time or financial constraints; or they might not have the inclination, having been a successful business without this element for some time.

2.3.4 Mobile Technology

The majority of large retailers in the UK manage a mobile ‘app’ in some form. Some of these apps work as mere ‘store finders’, others may have a catalogue to browse, as well as other special features such as exclusive discounts for users, and some can actually be used to shop.

There are examples which have even more interactive features; for example the GAME Store app works as part of a ‘loyalty card scheme’ and a barcode can be accessed and scanned to collect points and ‘achievements’, which equate to deals and monetary value in store. The future is mobile technology, with the high level of mobile phones, and now tablets, in the market, the developments are coming thick and fast. There are three main types of mobile technology developments which are relevant within this retail framework.

Geo-Location is a simple form of mobile technology; something as straightforward as a map which shows all the independents within the city (with a small amount of information about the shops). This could also be used to offer exclusive deals to customers using the app – driving footfall into store. The main issue with this is the ongoing upkeep of the technology. Independent Retail, by its very nature, is a fast and frequent moving industry and the upkeep will take serious resource.

Treasure Hunt technology is already in use in retail in the USA and the software already exists – it is possible to simply add information into the existing format. The main issue with this is that it would need to be a Leeds wide initiative and would not work on a small, individual scale.



Augmented Reality is the real ‘up and coming’ mobile technology. It works as a phone camera is run over a ‘barcode’ logo, which then can render virtual reality, perhaps a 3D model of a building or objects which are not actually present. This is clearly the most time consuming and expensive of the new developments.

2.3.5 Uni-Channel Retailing

In very recent times there has been a move away from retailers trying to be ‘all things to all people’. Instead retailers are now choosing to focus on one area of retail (either offline or online) and then engaging the other, but for the purpose of driving traffic/footfall to their preferred method of retail. For example, Apple sell the majority of their product online or through external retailers (phone companies or electrical retailers for instance). Despite this Apple choose to maintain a high-street presence in the form of stores, which actually look more like art galleries, to allow people to view and test the products which they will likely buy online, or via another retailer. The intention of these galleries is to create and maintain an atmosphere in-keeping with the Apple brand – being ‘cool’. In contrast, Primark have an online presence, but one which is geared towards driving store traffic. Due to the fast changing nature of the Primark fashion lines, online retailing would take enormous resources and be particularly impractical. Instead Primark use their website as a source of information, about the company and the brand, and as a store-finder, rather than an online marketplace.

2.3.6 Customer Experience

Perhaps the biggest change to retail in the UK in recent years has been the introduction of the ‘customer experience’. This concept has been, in part, generated by the large ‘out-of-town’ malls which house all manner of retail and leisure facilities in one convenient location; usually with free parking and protection from the British weather. This idea is about creating a ‘brand experience’ for customers, as well as offering high quality products, to make shopping enjoyable rather than it be a chore. This has been happening for some time with regards to pairing retailers with leisure activities, cinemas or restaurants/cafes are common examples, and can even be found within Leeds City Centre, in the form of The Light. In many ways, this is simply an extension of the familiar department store concept. This strategy has also been picked up by individual retailers and a change has occurred in the design and structure of the physical shopping spaces. Abercrombie and Fitch is an extreme example of this type of shopping, the UK store based at Piccadilly, London. Inside there is loud music, the lighting is dim and the staff patrol half naked and break into ‘spontaneous’ dancing, it is often likened to shopping in a night-club. This atmosphere is aimed towards a young and ‘hip’ crowd, and it is extremely successful at engaging them.

Whilst A&F is an extreme example, this change in shops is happening across most big retailers, albeit in a more subtle way. Another example would be Marks and Spencers, who have equipped their staff with iPads, with the intention being to engage directly with the customers, ordering different sizes or items which are out



of stock for customers immediately and with minimal fuss and have a café and food offer to encourage customers to stay in store.

However, the main way in which these changes can be seen is in the store design and product placement; this is actually much harder to quantify but nonetheless visible and spreading. High street chains are making clear attempts to appear more ‘upmarket’, focusing on displaying fewer, but more superior products, and creating a shop design theme, which is in line with the brand image they wish to present. This is particularly prevalent within the fashion retailers, who are making attempts at being perceived as ‘cool’ and ‘edgy’ designations to attract the a young customer base.



3 Business Incubation and Retail

“An incubator is designed to accelerate growth and success through an array of business support resources and services that could include physical space, capital, coaching, common services, or networking connections”.

Business Incubation is a well-established tool for supporting entrepreneurial start-ups. The first incubator opened in a warehouse in Batavia, New York in 1959, and there are now an estimated 7,000 incubators worldwide, including 300 or so in the UK. Incubators are often targeted at businesses in particular sectors – creative and digital, and advanced manufacturing are currently popular – and are typically linked closely to higher and further education establishments. There is a distinction to be drawn between subsidised workspace for start-ups and incubation, which will often provide a cheap working environment, but is characterised by business support and a more formal programme of business education which seeks to accelerate business development and growth in the early years of trading.

3.1 Business Incubation in Leeds

Leeds has a solid tradition of business incubation developed by the public and third sectors. Among current incubators in the city are: QU2 (http://www.qu2leeds.co.uk/) is a business incubator service run through Leeds Metropolitan University. It offers a number of services for start up business and a number of membership packages. QU2 has helped many businesses and their ‘success stories’ can be viewed on their website, alongside more detailed information about their services and office facilities. In addition to office and hot-desk facilities, members of QU2 have access to regular advice clinics, specialist workshops, coaching from a dedicated business advisor, and membership of Leeds Chamber of Commerce.

Shine http://www.shinebusinesscentre.co.uk/ is a different form of business incubation, in that is utilised by both start-up and small, but existing business. Shine, like QU2, charges a small amount for the services it provides.

The facility offers hot-desking space, shared offices and even small private offices, which are available on short leases of three months upwards. The building, based in Harehills, also has meeting and conference rooms available for use by clients. Shine also runs events and conference in the centre.

There is also a café on site providing food and beverages as well as a more social place to work. Shine also offers business support, but through outside bodies, including Chamber of Commerce, who visit the site and offer assistance to tenants.

inc. enterprise is a purpose built business incubation centre based in Leeds City College at the Park Lane Campus. The centre offers access to managed and virtual office facilities for start-up businesses. There are 29 offices which vary from 1-6 person in size. In addition to the space, businesses receive a range of support from


http://www.qu2leeds.co.uk/

http://www.shinebusinesscentre.co.uk/


a variety of expert mentors as well as access to meeting space, videoconferencing facilities and the Internet. Patrick Studios (http://eaststreetarts.org.uk/workspaces/patrick-studios/) is a bespoke centre for artists and provides up to 34 quality studio spaces, with additional resource areas, large project space and the East Street Arts headquarters. It is unique since it addresses artists’ need for structured support outside of academic institutions and fosters an ethos of professional development. It is a place for artists endeavouring to be professional in their chosen discipline and it is expected that a reciprocal culture will evolve whereby new relationships and collaborations are established and careers can flourish.

3.2 Retail Incubation

While business incubation is a well established concept, both internationally and here in Britain, its application to retail businesses is less developed. Parts of traditional business incubation can work for retail, a lot of the services offered are applicable across most areas of business; legal or financial advice, for instance, would apply across most sectors. However, the retail industry does have certain specialties which may not be covered by a standard business incubation model; window dressing, merchandise management and high level of customer service for example. Recent years have seen the development of this specific form of incubation, both internationally and, to an extent, domestically. Retail incubation can take a number of forms depending on a number of factors including; the incubator provider, the incubatee, resources available, and the overall aims of any incubation project.

Our research has identified four types of retail incubation, which are discussed below. The following table summarises the four offers: Incubator Description Notes Pop up shop

A ‘pop-up’ shop is when a retailer, from any stage of business, opens a shop on a temporary lease to ‘test-trade’ their products (for start-ups), to take advantage of busy shopping times (i.e. Christmas) or to test a new location (existing retailers). This type of incubator can also help to ease vacancy rates.

If this were used as part of an incubator, other services would be offered to the retailers such as training and mentoring. This is only a short term solution without a good exit plan for tenants.

Floating incubator

This is an incubator programme rather than any physical space. As this incubator is not confined by geography it has a great deal of freedom and could be used by retailers at any stage of business in multiple locations, across multiple sectors.

This provides a number of non-financial services including training, mentoring and support but any shops are leased privately.


http://eaststreetarts.org.uk/workspaces/patrick-studios/



Incubator Description Notes There is a formal agreement between incubatee and incubator to oversee the administration of support so that it is used to its fullest potential.

Incubator unit

This is a physical space which is offered free or at a low rent to help start-up retailers (or online retailers looking to get onto the high-street). Space within an incubator unit is limited, with the aim being to give retailers a good start and help to create a sustainable business beyond the incubation programme. This space could be a single shop, with one tenant at a time, or a larger unit designed to house multiple ‘concessions’. The concession arrangement would also allow for retailers to test-trade their products and the retail lifestyle before committing to a private, long lease.

Other services, including training, mentoring and support, should be offered with the aim of increasing sustainability and chances of success after completion of the programme. This is a short term solution which is only useful long term if it has a good exit plan for tenants.

Online incubator

This incubator takes the form of an online marketplace, housing numerous products from multiple retailers but using a single basket. This can be used by retailers at any stage of business to establish an online presence. The retailers would then either pay a ‘rent’ to be on the site or a commission on sale to go towards the upkeep.

This could be run as a stand alone incubator but that would not aide the high-street. Instead, the online incubator could be used to complement one of the other incubator types, perhaps working as a feeder into a physical space.

3.2.1 Pop-up Shop

A ‘pop-up’ shop is one which utilizes an empty retail unit or space on a temporary lease, ideally used by a start-up and small retail business. This can be utilized by start-up retail to test-trade their products, but can also be used by established businesses who do not have the resources to run a city centre shop all year round (these may have out-of-centre premises or run online). The incubator provider will also offer non-financial support including mentoring, training and other services.

Aims:

To help start-up retailers to test-trade their products and get a foothold in the industry.


To help existing retailers, who operate online or away from city/town centres, access the high street during the busier shopping periods without being tied into long leases.

Examples: Retail Ready People (http://vinspired.com/retailreadypeople/pages/about) Taken from their website; “vInspired, the charity dedicated to helping young people do good things, has teamed up with retail charity, Retail Trust, to create Retail Ready People. We offer young people in England aged 16 – 25 the opportunity to take part in a new 14 week skills development and volunteering programme which includes opening and running a pop-up shop on their local high street.” Ipswich Borough Council is also working on a pop-up shop scheme; “Ipswich Borough Council is working in partnership with Tower Ramparts and the Suffolk Chamber of Commerce to offer entrepreneurs a retail unit in the Tower Ramparts Shopping centre for a trial period of up to twelve weeks”.

As part of this scheme the retailers are expected to contribute £20 a week, which is all inclusive of rent, utilities and upkeep of the unit. The aim of the project is to encourage entrepreneurship and to ease the vacancy issues in the town centre. This is ‘Test-Trade’ scheme which is advertised as allowing the retailer to showcase their products and make direct contact with potential customers.

Advantages

This is not exclusive to start-up retailers – established businesses who

operate online, or from non centre locations, might also find this method fruitful in helping to develop an already self sufficient business.

This option offers an alternative to the long leases offered by landlords in city centres which might stop smaller and newer businesses from taking premises.

May help to reduce vacancy rates. It provides retailers who might have units out of centre, or those who operate

online, to run stores over the busier periods (e.g. Christmas) where sales ought to be far higher, without having to commit to a shop during the lower earning times of the year.

It gives start-up businesses an opportunity to ‘Test Trade’ without being tied in long-term. This allows retailers to test the consumer market, their product sales and costs, as well as testing the ‘lifestyle’ of being an independent retailer.

Disadvantages

There is no guarantee, after the initial pop-up period, that the retailer will be

able to find other affordable premises, should they want them. As it is very common to see these during the busy Christmas period, any

profit made is not actually representative of the whole year’s sales and thus might mislead retailers with regards to future business planning.

It can be difficult to find willing landlords.


http://vinspired.com/retailreadypeople/pages/about


If a unit is vacant it is likely to be so for a reason, perhaps it is not in the best state of repair or has low footfall figures.

Special attention must be paid to the ‘aftercare service’ for this form of incubator. Finding suitable premises and covering the costs of accommodation will often require significant growth and adaptation of the business model to ensure that the extra costs of full rent and rates can be afforded.

3.2.2 Floating Incubator

This is a form of incubator separates the programme of support from the retail premises. It can be used by both start-up retailers and existing businesses which require additional support. A number of non-financial services would be offered; training, mentoring and support, but the shop is leased privately. There are examples of also offering subsidies for rent within this framework, through partnerships with landlords and property agents. This can be used across a wide geography and range of retailers without putting too much strain on resource. Also, there is the scope, within this type of incubator, for a formal agreement between the incubator and incubatee which means that support can be effectively administered across the range of users, and progress can be efficiently monitored. This also encourages the retailer to take more personal responsibility in their business, which can be trickier with other incubator types.

Aims:

To support start-up and existing retail businesses with the view to creating a sustainable retail business.

Encourage the independent retail sector of a city to create a USP

Examples Downtown Kalamazoo is situated in Michigan, USA and it runs a retail incubation project. The project aims to improve the town centre as well as help new retailers. The programme accommodates existing business but priority is given to start ups.

“The purpose of Downtown Kalamazoo Inc’s (DKI) Retail Incubator Program is to create vibrancy and wealth in downtown Kalamazoo by supporting new retail concepts. The Retail Incubator is a program, not a space. Retailers may choose any location consistent with the DDA’s 2009 Comprehensive Plan, as long as the landlord agrees to the terms and conditions of the program”. As part of this programme, businesses receive various benefits including; 18 months of staggered, subsidised rent, training in multiple disciplines, and a mentoring programme from an already successful downtown business. Within this programme the retailer must also agree to specific conditions as part of an effort to ensure success. This formal agreement means the retailer must participate in the training and mentoring programmes, including quarterly meetings with the mentor who will be allowed access to business information, and have their store open a minimum number of days and hours per week. The retailers must



agree to stay within the defined district for a minimum of three years from the date of opening; if they relocate they are liable to repay the subsidies they have received. Advantages

This is a good way of helping multiple retailers with one programme. It can

be applied across the retail sectors, or the whole city. A floating incubator allows an authority to work with landlords and agents to

create a pool of suitable retail premises which can then be branded as part of the incubator programme.

It allows business to be in ‘right place’, rather than in a specific incubator unit. An incubator space may not have the best customer profile for that particular business, or the best mix of surrounding shops to suit the retailer.

It gives the retailer power over their own location – perhaps empowering them and adding an extra sense of responsibility for the business. This means there is less risk of the retailer becoming reliant of the support of the incubator, and not being able to be self sufficient.

As it requires a more formal agreement between incubator and incubatee the progress of a retailer, and a shop, is much easier to evaluate and the programme itself is easier to manage.

Due to formal nature of the agreement, it is easier for the incubator provider to be more objective about the direction and potential long term success of the business – it allows the relationship to remain professional.

Exposes early stage retailers to the market costs of running a retail business.

Disadvantages

Can be difficult to find willing landlords accepting of the possible subsidies. If a landlord is willing it may be because the vacant unit is difficult to fill by

other means, perhaps due to poor state of repair or location. There is a ‘separation’ between incubator and incubatee which may cause

communication or logistical issues. Creates a ‘one best way’ style programme which may not be perfectly fit to

every business on the programme. Can be difficult to find willing retailers for the programme, if they have

already secured premises or there is no financial incentive, the retailers may consider the additional services to be surplus to requirements.

3.2.3 Incubator Unit

This is a physical space which offers cheap or free rent to start-up retailers, perhaps for an allocated period of time. There is the possibility of extending the service to those who are already in existence, but operate exclusively online and wish to open a shop. This incubator could be a single shop with one tenant at a time although this is unlikely due to its narrowness. It is more likely to be a unit in which multiple businesses can operate, either in different internal units, or as ‘concession’ stands,



meaning the costs of rent and maintenance could be split and thus be more manageable. In theory, this programme could be used as to develop new and small retail businesses which then ‘graduate’ from the incubator and into privately rented units. This form of incubator also offers non-financial support services such as training and mentoring. This approach has the added advantages of joint supplies (tills, technology etc) which helps to relieve some of the financial burden. Aims:

To support start-up and existing retail businesses with the view to create

sustainable retail businesses independent of the incubator. Offer new retailers a way into the industry without stretching their resources

beyond the capability of early business. To create a shopping location housing multiple retailers to create the

‘shopping experience’ and encourage an independent culture.

Examples:

Bird’s Yard http://birdsyard.co.uk/ is a three storey shop, in Leeds, which houses multiple independent designers who specialise in mainly, but not exclusively, fashion as well as housing a tea room on the ground floor. The unit houses a number of ‘shops’ which work as concessions within the unit. It also stocks the products of numerous other independent designers. This mean the store can engage with independent retail on a small scale, a few pieces in a flexible manner, or on a larger more permanent basis. Bird’s Yard allows designers a chance to display their products without committing to long tenancies. Adding the tea-rooms, coupled with the ‘maze-like’ nature of the store, has created a shopping experience and generates visiting customers rather than simply passing custom.

Afflecks “is an emporium of eclecticism, a totem of indie commerce in Manchester’s Northern Quarter and above all else a fantastic place to shop for anything from Top hats to tattoos.” (http://www.afflecks.com/)

Afflecks is in Manchester’s Northern Quarter, housing over 70 independent traders and two cafes. The building runs as an indoor market and the tenants are classed as market traders. This allows the leases to be very flexible, week by week, meaning the retailers can take space without worrying that they might be tied in, if circumstances change. Afflecks has cornered a young and alternative market, ensuring that any tenants fit in with the atmosphere of the rest of the building. Careful management has allowed Afflecks to thrive and be a hub for independent and alternative retail in Manchester.


http://birdsyard.co.uk/

http://www.afflecks.com/


Advantages

This is a good way for new businesses to gain a foothold in the retail industry, hopefully gaining a customer base and developing their business plan to facilitate moving on from the project into a private unit.

Shared facilities, supplies and office. Helps to create a community of independent retailers who may assist one

another when necessary and increasing networking. Keeps both parties in direct contact which would mean any progress (or not)

could be monitored closely and there can be a closer working relationship. A formal contract could be a part of the agreement, one which stipulates

exactly what is expected of the incubatee as part of the programme – which could also be designed to prepare them leaving (e.g. mentoring/training).

Disadvantages

This is most expensive type of incubator. Footfall must be established and maintained for this to be successful. It is unlikely to find a private landlord who would be willing, and although they

do exist, they are not commonplace. There is an issue with finding appropriate ‘graduate space’ once the

business wishes to move on from the programme. An aftercare programme has to be carefully considered for the incubator to have any long lasting effects.

It is very easy to have a programme, such as this, fall into a ‘life support’ rather than an ‘incubator’. Special attention must be paid to the fact that this is not a permanent situation and it is about creating an independently sustainable business. This could be achieved by, perhaps, strictly enforcing time limits on the tenancies so the retailers are aware of the temporary nature.

One issue is regarding the mix of retailers within the space. Not all types of shop will naturally fit together in terms of customer profile. It could be difficult to determine which businesses will work together and to balance this decision with those businesses which look promising in terms of sustainability.

3.2.4 Online Incubator

This type of incubator can be used as a stand alone scheme, or to compliment one of the aforementioned incubators. It can be used for start-up businesses and established shops who wish to develop their online presence. The website would be created as part of the incubator programme. The online incubator takes the form of an ‘online department store’. It can house numerous products from multiple retailers but a single ‘basket’ and ‘check-out’. The retailers then either share the cost of the upkeep of the site, or pay a commission or rent to the independent host. The retailers might also share warehouse space to ease the burden and cost of storage space.



If the cost of the website is run from commission on sales it might encourage those retailers, which are most successful, to branch out on their own rather than incur the ever increasing costs that increasing sales would bring.

Aims:

To give existing independent retailers a chance to establish an online

presence in a supported environment. To give start-up business a chance to become established online and share

the burdens with other retailers to alleviate pressure. Possibility to create an online directory of local independent traders.

Examples: Asos Marketplace https://marketplace.asos.com/ From their website; “The place where anyone, anywhere in the world, can sell fashion, to anyone, anywhere in the world. Boutiques are small businesses selling their own label, other brands or vintage collections, directly to you”. ASOS Marketplace has two types of selling, one is the individual and the other is ‘boutiques’. The individual seller is a similar set up to ‘eBay’ in which a seller lists their product for free, and pays a commission upon sale. It is the ‘boutiques’ which are more alike to the type of incubation discussed above.

A boutique can be run by a single person or by an existing company but they must have at least 15 styles or items on sale at one time. ASOS charges a basic ‘rent’ for the listings and takes 20% commission on all sales. There are many other features offered as part of membership (below). The site also has a number of online guides available for free, these concern proper photographing of the products and the running of the boutique efficiently.

Membership services include free listings, promo codes and end of season sales, a customisable storefront and a dedicated account manager.

Not on the High Street http://www.notonthehighstreet.com/ is another form of online incubator, like ASOS, it is a private business in its own right rather than a public body simply helping retailers. The biggest difference is that Not on the High Street do not simply sell fashion but also home and garden items, gifts and beauty products.

The central business deals with the marketing, ecommerce and administration. A single seller can host up to 30 items and members are offered an account manager and helpdesk facilities as support. Another difference is the way in which people become sellers. It is not a case of simply creating a membership and paying, you have to apply and be accepted. Any new products must be different to those available on the high street, they must be photographed well and preference is given to those which are made in Britain. They only accept small, British based businesses and this is done to maintain the brand of the website as a whole.


https://marketplace.asos.com/

http://www.notonthehighstreet.com/


Advantages

This type of incubator can host many different businesses at once expanding the scope of the project.

It is cheaper than pop-up shops as a method for retailers to test-trade. May facilitate businesses which might work well in partnership (same kinds

of customers for instance) pooling their resources, perhaps opening a shop together or expanding in some other way.

Could work as a feeder into a physical space incubator, testing the businesses, products and business plans before using resources putting them into a shop.

Online sales can help a retail business to stay afloat through the quieter periods of the year in which the footfall in shops is smaller. Online customers can be based in a far wider geography thus making the potential customer pool much bigger.

Disadvantages

This might achieve business growth or development objectives but is unlikely

to deliver physical regeneration or influence place making. The cost of maintaining a website is actually far more than creating one; this

also includes adwords, and SEO. Can be as difficult to create website traffic and conversion as footfall on the

high-street. If online customers are spread nationally, or even internationally, converting

them to store customers (should one be opened) may be difficult. It may almost be like starting again with a customer base.

3.3 Retail Incubation in Leeds

Although, globally, retail incubation is in its early stages of development, there are already several examples in Leeds. Including:

3.3.1 How Bizaar!

Leeds City Council has previous experience in retail incubation in a project, funded through the Local Enterprise Growth Initiative, entitled How Bizaar! The project was based at Kirkgate Market and offered start-up retailers the opportunity to have a rent-free shared display space for a 12 week period. At the end of the 12 week programme, tenants could apply for their own stall on the market or could walk away, with ‘no strings attached’.

The stall was a large unit which could display the products of around 15 retailers at one time. The council covered the costs of stall refurbishment, as well the member of staff who ran the stall on a day to day basis. It was hoped tenants would chose to work on the stall themselves although, in practice, this seldom occurred. As part of the programme, there was also an option for a small individual unit at a subsidised rent. If a tenant chose this option then they were expected to run the



stall themselves as any other trader would. Approximately 100 people test traded at How Bizaar, with 10% going on to establish their own retail business.

Key lessons from the programme included: :

Length of tenancy should be flexible – 12 weeks is too long a tenancy for those businesses which are not viable and is not long enough for those business which have the chance to be successful and need longer to gain a foothold

Incubation space should cost something – the idea of ‘free’ space was not the most conducive to success and that the retailers would have been better served by paying a fee, more properly understanding the nature of business and taking more personal responsibility.

Retailers need to get experience working in retail – allowing tenants to simply display their products and walk away, rather than manning the stall themselves, took away the opportunity for them to gain real world retail experience and, again, lowered their feelings of personal responsibility.

Footfall is crucial – one of the biggest hurdles faced by the project was the location of the How Bizaar! units. The units were based in a quieter section of the market which sees far less footfall than the main areas and this made it even harder for retailers to establish a customer base.

3.3.2 Fabrication http://www.fabric-ation.co.uk/

Fabrication Crafts Ltd is a social enterprise supporting micro craft and fashion businesses also teaching crafts skills in house and in the community. At the time of writing, Fabrication is based in The Light where they have a pop-up store which is run as a social enterprise to help micro-retailers test trade. The shop itself is designed as part department store, part art gallery and displays a large range of products and work by different retailers. The shop contains clothes, jewellery, house wares and art, and even some food preserves.

As part of the agreement for displaying products, it is a requirement that retailers work a specified number of hours in the shop to help with running costs. The concessions also pay a commission on all items sold to go towards the running costs of the space.

Within the shop, focus is placed upon the origin of the items, their originality and any stories behind them or their makers. Shopping in Fabrication Crafts is a unique experience aimed at people who feel passionately about local products and independent retail. The current location has been very successful, however previous outlets in Kirkgate and in the Georgian Arcade of the Merrion Centre have been less commercially successful.

3.3.3 Bird’s Yard http://birdsyard.co.uk/ is a three-storey shop, in Leeds, which provides

an outlet for multiple independent designers specialising mainly, but not exclusively, in fashion. There is also a tea room on the ground floor.

The unit houses a number of ‘shops’ which work as concessions. It also stocks the products of numerous other independent designers. This means the store can engage with independent retail on a small scale, selling a few pieces in a flexible


http://www.fabric-ation.co.uk/

http://birdsyard.co.uk/


manner, or on a larger, more permanent basis. Tenants must work shifts within the shop as part of the agreement.

Bird’s Yard allows designers a chance to display their products without committing to long tenancies. Adding the tea-room, coupled with the ‘maze-like’ nature of the store, has created a distinctive shopping experience and attracts visiting customers rather than simply passing trade.

3.3.4 Imminent Developments

The Made in Leeds http://madeinleeds.co/ store in the new Trinity Centre showcases the work and talents of local designers and artists, with the intention to support the local fashion industry, local artists and musicians. From the website: “Leeds designers and creatives will be showcased in the store and brands already confirmed for the line-up include James Steward Couture, Antiform and Dots Printhaus.” The store is a pop-up, utilising an unlet space in Trinity, and will be open for 8 weeks in the first instance. Handpicked Hall http://www.handpickedhall.co.uk/leeds/ emerged when a previous business, a department store in Ripon, went into liquidation. Rather then sell the property, the owner began to lease out smaller spaces, or concessions, within the unit with the intention of attracting people to test retail in a cheap and flexible manner, in a good location.

Potential tenants must apply, and then be accepted to gain a space. They must also then maintain standards and meet operational requirements to retain the space. The landlord uses a ‘soft’ contract as a lot of emphasis is placed on mutual respect and a sense of community. There are no official leases as part of the tenancy and tenants may trade for as many or as few days a week as they wish.

Following the success of the first shop in Ripon, the business is using the same business model to expand into Skipton and Leeds. The Skipton store opened in March and the Leeds store is set for June 2013, at the Grand Arcade, and it is hoped that this will be the flagship store. The business owners also intend to use the other, small units within the Grand Arcade as second stage incubator units, offering more permanent spaces which would work as a next step for retailers.


http://madeinleeds.co/

http://www.handpickedhall.co.uk/leeds/


4 Independent Retail and Local Authorities

While many local authorities have a direct interest in independent retail through owning retail premises, running market services, and supporting events and tourism, it has not been common in recent years for councils to be involved in providing business support for retailers. This has been partly due to the constraints of funding – for example, the retail sector is largely excluded from European funded programmes – but also because the national business support offer from Business Link did not work with retail businesses. ‘The Portas Review: an independent review into the future of our high streets’ was published on 13 December 2011. It set out what Mary Portas, an independent retail consultant, thought had led to the decline of the high street and made 28 recommendations about what could be done – by government, local authorities and business – to breathe life back into them. The report was supported by the Portas Pilots grant scheme, to help implement the recommendations, and the High Street Innovation Fund. Both schemes have encouraged local authorities to look again at supporting retail locations and businesses, and a flurry of work has begun around the country. A brief review of local authority websites shows that work has focussed on two main areas of activity. A range of events such as festivals, celebrations or local campaigns which engage, promote and raise the profile of independent retail are being developed. Many of these are not new events, but are now working in a more targeted way with retailers. Secondly, there is a raft of structured schemes or formal co-working which encourage business development through investment, premises, training and other support services, such as those examples from Birmingham and Sheffield discussed below.

4.1 Manchester

“The council is particularly supportive of the growth of the independent retail sector, which has become a defining feature of several quarters of the city centre” (Manchester Core Strategy 2012-2027). One example of these links is evident as part of the I LOVE MCR campaign which was run in reaction the riots in 2011; “it was a grass roots campaign which allowed residents and local businesses to send out positive messages about the resilience of the city.” As part of this campaign there were a number of activities and a great deal of participants from all areas of retail. The finale was a weekend festival led by the independent businesses in the Northern Quarter – the home of independent retail in the city. The event attracted 15,000 visitors. In terms of the ongoing work between independents and Manchester Council, the independent retailers have also made the most of the links to the Tourism board, with both the Manchester Craft and Design Centre and Afflecks Palace winning Manchester Tourism Awards. The links, and thus the awards, have brought the retailers press and prestige as a result of working with the public sector.



4.2 Birmingham

Birmingham City Council ran a Retail Development Programme (RDP) in 2010/11. The aim of the Programme was to support existing independent retailers and attract new independent brands to Birmingham. The programme provided financial assistance through grants of between £2,500 and £10,000 for a variety of purposes, from marketing to shop fitting. The final evaluation for the project reported that:

Evidence from the evaluation shows that the programme met a real need for independent retailers in Birmingham, as retail was a sector that was rarely targeted for support. The demand for the programme was evidenced through the high number of enquiries and applications received. One of the key aspects of the delivery model was the decentralization of delivery, with promotion of the project and the provision of support and guidance being devolved to local levels. The project officers were commended for their helpfulness and support, and the programme as a whole was run well…

Other impacts of the RDP included increased access to new markets, improved confidence in the Council among retail businesses, safeguarding against the recession, the provision of a valuable source of finance and the regeneration of local town centres.

4.3 Sheffield Chapel Walk Project

Sheffield has used its £100k allocation from the High Street Innovation Fund to boost retail growth through training, development and retail start-up incentives on Chapel Walk in Sheffield City Centre. The main focus of work is the former Oasis Store, which is to become a second Birds Yard with the support of the proprietor of the original Leeds outlet. There will also be a focus on encouraging new retail via ‘pop up’ shops as a new way forward on the high street.

4.4 Leeds Leeds City Council is most directly linked to independent retailers through Kirkgate Market where we manage the facility as a whole and are landlord to 400 traders. The Market has had many business support schemes and programmes for start up and established traders, such as How Bizaar! and a capital grants scheme for stall improvements. Current support includes tiered rent subsidies and business support for new traders. Leeds City Council has also run a number of events in conjunction with the market traders, including local provision of national events such as last years ‘Love Your Local Market’. The event in Leeds consisted of a fortnight long celebration of local markets, including Kirkgate but also Pudsey, Otley and Yeadon. The event included promotions, shows and entertainment, dance lessons, face painting and much more. The campaign is returning in May 2013.



Outside of the markets there is also a level of involvement with independents in other events such as Leeds Loves Food. 2012 saw the festival’s 7th consecutive year in Leeds. The 2013 festival is extended to two weeks and three weekends and will be a celebration of the Leeds independent food and drink scene, promoting local and regional culinary expertise in an urban setting. Through the High Street Innovation Fund, Leeds Council has been working with town teams across the city including in Armley, Otley and Lower Kirkgate. The latter is a project focussed on Birds Yard with the aim to develop the space, making it even more helpful and accessible to aspiring retailers.

Beyond the schemes based at the market, Leeds City Council does not have any schemes or projects currently running which work directly on business support issues with independent retailers. As discussed above, there are schemes such as these running outside of the public sector that the Council might assist.

4.5 What more could we do?

Leeds City Council and Leeds Metropolitan University can assist in recruiting new retailers to existing incubator and raising awareness of the schemes. Leeds City Council has links with many other projects and organisations around the city, particularly those which are concerned with manufacturing and the creative arts. These are a great resource for potential retailers who are passionate about their products. Leeds Met also has connections and links to potential tenants for projects through its student population and also has its own specialised business start-up scheme. The council can play a role in linking incubator projects and retailers with other projects, schemes or organisations, which may work with them to a mutual benefit. An existing example is that a link has been facilitated by the council, between Melbourne Street Studios (an up and coming textile incubator) and the Department of Hospitality and Retail at Leeds Met. The joint venture will see students, as part of a course module, looking at the project and create a promotional package to raise awareness and to bring in tenants of the space. This allows the students to gain industry experience and Melbourne Street Studios to get fresh (and, more importantly, free) recommendations. This should continue as more incubators are founded and developed.

There is also a lot of expertise within the council’s business and enterprise team, which should be available to those people running the incubator projects should they wish to access it. This is already done to a large extent through events such as the ‘Spring into Action’ enterprise fair, organised in partnership with the Chamber of Commerce, and the ‘Pre Business Start up Workshop’ series. Information is also available through the business section of the council website (www.leeds.gov.uk) although much could be done to improve the quality of the information and the way it is structured. Both of the events mentioned above are generic business start-up events and it may be worth considering similar events, but which are sector specific with one aimed at retail.


http://www.leeds.gov.uk/


The Council’s economic development service is also currently leading on a piece of work called ‘Whats Next for Retail in Leeds?’ By drawing on the work of different teams within the council including markets, regeneration, asset management, business rates and city centre management, amongst others, this piece of work will consider the retail sector as a whole in the city. The council is looking to develop ‘Town Team’ approaches by supporting retailers in town and district centres. An important element of this work will be to engage with local businesses and landlords/owners of retail premises in these locations.



5 Independent Retail in Leeds

To establish a baseline of independent retailers in Leeds city centre, a programme of fieldwork was undertaken, mapping all independent stores and their locations. Desk research was then undertaken to establish whether these stores fitted our definition of “5 outlets or less”. A database of these stores was then prepared to enable follow-up survey work with the independent sector.

In mapping independent retail we have produced separate lists of food outlets (e.g. sandwich shops, hot food takeaways) and personal services (e.g. hairdressers, tattooists), choosing to focus on primary retail outlets. We have then segmented retail into three tiers, depending on the nature of goods sold and the target market of customers. The segmentation we used is as follows:

Segment Product Type Shop Type Customer Type High End Retail (Victoria Quarter)

High end, high value type products. Clothing and Accessories will represent ‘high fashion’ and be priced accordingly. Focus is on fewer, but more expensive items, as opposed to lots of product.

The look of the shop will represent the high value of those products displayed within. It is often almost sparse in terms of stock displayed and is extremely clean and tidy. It could perhaps be likened to a gallery of sorts, displaying the products. A shop should also be surrounded by shops within the same mould, to create a shopping environment.

Customers are usually from a more affluent background. They would usually be from the older generations who have more disposable income due to a lack of dependents. There are also younger people who frequent these types of store, those who are interested in high fashion and have the financial means to back this interest.

Boutiques (Corn Exchange)

The products stocked are often alternative, hand-made or vintage. Due to the limited stock products are not cheap, mostly priced in the middle range. The products in these types of stores are often prized on their differences from those available on the high street.

These stores will usually have a boutique feel, perhaps with a ‘shabby chic’ décor. The products are both displayed, as in a higher-end shop, but also available on rails. Shops will often offer information on the source or manufacture of their products to appeal to those customers who like to know the history of their purchases.

Customers are often younger and from a bohemian lifestyle. Many customers are passionate about their purchases, liking to know the history and story of the items, and to buy unique, ethical and alternative products. Many of the customers visit these stores in the hopes of finding products which are not readily available on the high-street.

Value/Variety Retail (Markets or Kirkgate)

The focus here is value and variety. The products available should be good value and due to this, a high volume of sales is required. There is a focus on selling everyday items, rather than specialities and luxuries as with the other types of retail.

This type of retail may be in a shop unit but could easily be on a market stall. The shop (or stall) would be designed to house a large amount of stock to maintain the volume of sales needed to make the business worthwhile.

The variety of stock means that the variety of customer is equally diverse. Markets attract customers from a multitude of backgrounds, although those on the lower end of the economic scale may find the bargain prices very useful.



5.1 Independent Leeds

Our recent research shows that there are currently around 200 independent shops within the city centre area of Leeds. Half of these stores are primary retailers (shown in orange on the map below), 50 are food outlets (pink on the map), and 37 provide personal services (mapped in yellow). Whilst Leeds does have a great selection of independent stores, the culture of independent shopping is not particularly prevalent within the city. Consumers have become increasingly reliant on the high-street stores and less inclined to venture into side streets and away from the very centre to visit the areas of independent stores. Briggate and Commercial Street, for instance, are almost completely void of independents but are the busiest areas of shopping. There are, however, pockets of great independents within Leeds if you know where to look. The Calls and the various Arcades have scattered independent retailers throughout, while Kirkgate Market, Central Arcade and the Corn Exchange are almost exclusively independent. The Arcades (Thorntons, Queens, County and Victoria) are situated on Briggate and are particularly suited to independent retail. As they are Listed Buildings, the units cannot be expanded and must remain intact, and thus small. The larger retailers have no interest in such small units and this means they are more suited to smaller businesses. Secondly, the Arcades are a successful location as they are used as a thoroughfare around the city centre and so gain footfall in this way. The Central Arcade is a newly refurbished, clean and impressive retail space for independents. The Corn Exchange is a beautiful and historic building which proved to be an attraction for tourists. These factors, coupled with comparatively small units, have allowed independents to set up shop here. Both demonstrate that independent retailers do have a place and a potential market in Leeds.

Birds Yard is another example of independent success, housing three floors of independent designer products, as well as a tearoom, and is situated in Lower Kirkgate. The shop has a unique way of displaying the work of numerous independents and has managed to create a shopping experience of its very own. The store has won many retailing awards, for individual designers as well the shop itself.

However, there are two big issues which affect all three of these areas; footfall and brand awareness. These two are very heavily linked together, symbiotically feeding into one another. Speaking to people around Leeds, some are unaware the Corn Exchange is open and full, that there is another floor to the Central Arcade, or that Birds Yard even exists. This needs to change if the independents based in these areas have any chance of survival. If these independent areas are going to flourish further then more needs to be done with regards to marketing, making people aware they are there, holding events, as well as providing incentives for those who do know to visit and spend.



There is one core section of ‘primary’ retail space in the city centre, this area has the highest footfall and exists from Briggate, across Lands Lane and across to Albion Street. This area incorporates the new Trinity Leeds Development. The other retail areas within the city are ‘secondary’, with smaller units and lower footfall.


Umesh Patel, proprietor of accessories and fasion store Gossip. The shop, based in the recently refurbished Central Arcade, sells fashion accessories for women, including shoes and a specially selected range of clothing, offering its customers “boutique style without boutique prices”.


Whilst there is a good selection of independent retail within the city centre, chain retailers dominate the primary retail area. Generally, the chain retail units are considerably larger than those housing independents. The independent retails, on the whole, seem to form clusters creating ‘indie areas’ within the secondary retail zones of the city.

This has implications for the city centre when considering both the recent collapse of some high street names and relocation of some retailers into the new Trinity Leeds development. Both of these factors will lead to some of the very large units being left vacant. There is a doubt, due to high rent, rates and the sheer amount of floor-space, whether independents could ever realistically fill these spaces. If independents cannot take the space, and city is already home to the vast majority of large retailers, it does leave an important question as to how the space can be used in the future.

5.2 Case Studies 5.2.1 Gossip – Umesh Patel

Who are you? Umesh Patel opened his accessories and fashion store in August 2012. It is based in Unit 13, Central Arcade in Leeds (just off Briggate, opposite Topshop and the new Trinity Leeds entrance). The shop sells fashion accessories for women, including shoes and some specially picked out clothing. All of this is in line with Umesh’s concept – “Boutique Style without the Boutique Prices”. ‘Gossip’ is a brand in its own right and the shop sells this brand exclusively. Although Umesh does not produce or manufacture his own products, he has complete control of all stock and carefully chooses products that fit with his vision for the brand, and for the store as a whole. Walking around the shop you can see the care that has been taken in these choices, the stock is presented beautifully and all work brilliantly, not only with each other, but also with the modern, chic décor and atmosphere that Umesh has created. What’s the story? Umesh comes from a background of IT Consultancy but was made redundant after the recession. He had difficulty finding permanent work and looked into self employment as the way forward. He first looked into franchising, and then came across Central Arcade, and impressed by the location and the price he decided to take a chance. He began buying stock, completed on the shop and starting trading. It was at this point, slightly back to front, that Umesh went to the bank and set up all the necessary financial aspects of his business. This is how ‘Gossip’ began. Umesh has never received any financial assistant or business support either at set up or through the running of his shop. He does qualify for small business rates relief, something which he says has helped immensely during his first year of trading, and is set to continue until 2014.



Any problems? Umesh has found there to be a few obstacles to his business, which he has had to overcome. There have been issues with the landlord who is not present, being based in London, and who has yet to appoint any kind of onsite manager. This absence has made it quite difficult for Umesh, and the other tenants, to voice any concerns and any changes, such as improved signage which has been requested, have been difficult and very slow moving. The footfall has also proven problematic for the arcade as a whole, people seem to be unaware there is even a second floor, never mind that the second floor is full with independent boutiques. Although this is an issue, Umesh has found that once people do find the shop they are extremely complementary and his repeat shopper rate is very high. What would help? In an ideal world, Umesh would love to have a more positive and pro-active landlord, or an onsite manager to make the arcade run more smoothly, and deal with some of the issues that it is facing from the front line, rather than from a London office. There should be some kind of central marketing strategy in-place, rather than simply waiting and hoping for footfall to arrive. He would also like to have better signage for the arcade, both externally and internally, hopefully leading people to the variety of shops upstairs. What about the future? Umesh sees two paths for the future. If footfall can pick up in the arcade then he would love to stay in retail, and would also like to launch a men’s line called ‘Shout’. If the issues with the Arcade remain the same then, unfortunately, it will be back to the drawing board. Any advice? Umesh says the secret is to be confident in what you sell, make it niche and give yourself a USP, for the best chance of succeeding in retail. The second most important, he says, is a good location. Financially, the best advice he can give is to plan for and factor in bad days, especially in the early stages of business where there can be more bad days then good ones. He also recommends getting every conversation and promise from landlords or agents in writing, that way both parties know exactly where they stand.

5.2.2 World of Dance – Lisa Proctor Who are you? Lisa Proctor runs ‘World of Dance’, currently based in the Victoria Quarter but in the process of moving into unit 3, Central Arcade. The shop sells dance wear, accessories and gymnastics gear. It is the only shop of its kind in Leeds city centre and Lisa believes that it is their specialist nature that underpins their success. Lisa employs three people to help run the store which sells ‘bought in’ brand dance wear, supplemented with their own range of ‘World of Dance’ wear.


Memphis Belle is run and owned by Beverley Zimmerman and positions itself as a niche retailer, selling 40s and 50s fashions, together with jewellery, cosmetics, lingerie and hosiery. The business is located in the Leeds Markets building on Vicar Lane and sells the Beverley Jane line, a range of specially branded and manufactured products.


What’s the story? The shop, which is family business, has been in existence since 1980, with Lisa in charge for the last 20 years. It is currently the oldest tenant in the Victoria Quarter, although the shop is moving in the near future. Lisa has made the decision to leave Victoria Quarter due to an increase in overheads and looked at a number of locations, finally deciding on Central Arcade due to the price, the location and the modern surroundings. Lisa hopes that the high quality and specialised nature of the products, coupled with the lack of direct competition in the city centre, will see her customers travelling with her to the new location. Lisa also feels that the dynamic of the city centre is shifting, with the opening of Trinity Leeds, and that the bottom half of Briggate and surrounding areas will be the more active and thriving retail space, and thus that is where she wants to be. Lisa has never received any financial assistance or business support. Any problems? Lisa says that her biggest obstacle has been the rising overheads as the Victoria Quarter has moved upmarket over the last few years. An increase in international and high-end chain retailers throughout the centre seen increasing rents and service charges. Although the Victoria Quarter began life as a location predominantly for independents, this has changed as the centre has expanded and thrived, and now the independents are few and far between. What would help? Lisa has been running a successful business for many years but appreciates that retail is changing. In an ideal world she would like to develop the ecommerce side of the business as she feels there is a great deal of opportunity for online sales that needs to be tapped into. Lisa also thinks that a renewed interest in dancing in always helpful to her business. The media, specifically one very popular television show, already play a big role in this. What about the future? Within the next couple of years Lisa sees herself establishing her shop in its new location, in Central Arcade, hopefully taking her existing customer base as well as using the new, more central location to gain a new legion of customers. Any advice? Lisa says that the single most important thing to remember is not to take too much out of the business, financially speaking, to make sure there is always enough in the pot for the tough times, which will come.



5.2.3 Memphis Belle – Beverley Zimmerman Who are you? Memphis Belle is run, and owned, by Beverley Zimmerman. The shop currently stocks fabulous 40’s and 50’s fashions, as well as a wide range of jewellery, cosmetics, accessories as well as lingerie and hosiery. Beverley stocks her own branded and manufactured products, the Beverley Jane line, as well as stock from other carefully selected manufacturers. What’s the story? The business, which is over 30 years old, was originally in Leeds Kirkgate Market selling lingerie and hosiery, both retail and wholesale. As the business expanded, a second location was opened, which is still the home of this unique and alternative retail offering. The shop was opened 21 years ago and is located in the Markets building, Vicar Lane in Leeds; it is a privately owned building although physically attached to Kirkgate Market. After many years in the Market, the overheads became too high and the decision was made to have the single store on Vicar Lane. Memphis Belle has transformed styles many times over the many years it has been open, during the last decade it has made the shift from gothic wear to its current 40’s and 50s fashions. Beverley says the demand for gothic wear simply is not as large as it was in the ‘naughties’ and so, very astutely, she found a new gap in the market. This is a pragmatic approach which is very likely one of the keys to her ongoing success as a retailer. Beverley says that as she cannot compete with Primark prices, and she has no desire to become a high fashion retailer, that finding her place in the market as an alternative and niche retailer has been important. Memphis Belle has a unique and unconventional offer within the city centre which attracts custom from less traditional sections of society, which is exactly who Beverley wants to appeal to; for example Memphis Belle has a large following of burlesque performers who are fun and loyal customers. As a result of this a great pattern of word of mouth has developed within these groups and the repeat customer rate of the store is very high. Memphis Belle also does excellent Halloween and Christmas business, transforming the whole store into a fancy dress and novelty item paradise. Beverley has never received any form of business support. Any problems? Beverley says that her biggest obstacles have been raising overheads, leading to her decision to leave Leeds Kirkgate Market, and also the location on Vicar Lane. She has looked into relocating to a more central location, perhaps around Briggate, but the costs are simply too high. Beverley is lucky that, because of her distinctive fashions, her customers will go out of their way to travel to her store but the surrounding areas (including Kirkgate and further down Vicar Lane) have not been so lucky and suffer from vacancy issues.


World of Dance, run by Lisa Proctor and previously based in the Victoria Quarter, has recently relocated to Central Arcade. Specialising in gymnastics and dance wear, it is the only shop of its kind in Leeds city centre and the specialist nature of the business has been a key ingredient of its success.


This also provides an obstacle in that it limits possible passing footfall as fewer people venture to this area of town now there is less to see. What would help? Beverley maintains that the biggest benefit to her business would be a better location, in terms of both footfall and surroundings, perhaps in one of the newly vacant properties around Lands Lane or similar. Unfortunately, that is not currently a viable option as the cost of the units in the core retail area is too high in terms of both rents and business rates. Beverley would also be open to developing the ecommerce sides of the business, although she is unwilling to take on the responsibility personally due to both financial and time restraints, as well as unfamiliarity with the technology. What about the future? Beverley intends to continue retailing and, trade willing, is planning to keep Memphis Belle in Leeds, and on Vicar Lane, for the foreseeable future. Any advice? The best advice Beverley could give, she says, is that retail is exceptionally hard work. She encourages anyone looking to get into the industry to fully understand this before committing. Beverley also suggests taking great care with all products and stock, research any gaps in the market and find a product to suit. Not all products will sell and sometimes fashions will change so Beverley suggest whilst you should take care with your products, you must also be willing to part with them.



6 Business Support for Independent Retail Start-Ups

6.1 Support Needs An important element of the research has been a survey of the views and perceptions of existing and potential independent retailers, carried out between 3 December 2012 and 14 Jan 2013. This survey, which is discussed below, has helped to identify current uptake of business support in the sector, and gaps or weaknesses in provision where partners could strengthen support. The goal was to use the survey to seek out and engage any potential users for any incubator programme that may come into existence in the future.

6.1.1 Survey Methodology

In surveying existing and potential retailers, we developed three related surveys for those who already have a shop, online-only retailers, and pre-trading start-ups. After fine-tuning the questions and approach through an informal focus group, the survey was posted on the Council’s Talking Point portal. Invitations to participate were sent out through lists of existing contacts, social media channels where retailers are known to be active, and to contacts from the Locate in Leeds property search portal who had enquired about retail premises over the past 12 months. The survey was open for 6 weeks and a total of 29 businesses participated. As the desk-top research developed, so did the survey and more questions were introduced, some with the intention of evaluating the independent retailer’s relationship with ecommerce, and to determine the demand for any assistance that might be offered in this area. The possibility of an ‘independent Leeds mystery shop’, use of a manufacturing or production facility and a possible ‘independent Leeds event’ were also touched upon through questions, and demand recorded respectively. The survey to attempted to ascertain whether or not Leeds is perceived as a good city for independent retail from the perspective of retailers.

At the end of the six week consultation period, there had been 24 results from the Talking Point portal and 5 from the initial focus group work. Of the 29 people who were surveyed, 10 already have shop premises, 8 operate online, and 11 are potential start-up retailers.

6.1.2 Survey Findings Business support organisations The best known business support body is the Federation of Small Business:

50% of those surveyed had heard of the organisation. British Independent Retailer Association (BIRA) and Leeds and North Yorkshire Chamber of Commerce both registered 40% recognition.

Only 30% of shop owners had used any of the business support organisations listed and only three of these (FSB, Business Link and Chamber of Commerce) had been used previously by shop owners who took part in the survey:



Ecommerce 73% of all those surveyed would like training and assistance in ecommerce. This

includes 75% of online retailers, who would like training and assistance in developing their ecommerce, despite already operating on the web.

Only 10% of shop owners actively use ecommerce as part of their business and 60% of shop owners would like assistance is this area.

91% of potential retail start-ups would like ecommerce to play a role in any future incubator scheme

61% of shop owners and online retailers already engage with social media.

Incubator 95% of online retailers and potential start-up retailers would like to participate in

a retail incubation programme. 90% of online retailers and potential start-up retailers would be interested in

moving their business into a physical shop space.

Leeds 69% of those surveyed think Leeds is a good city for independent retail,

although there is variation between categories: from 87% of online retailers and 82% of potential start-up retailers. Only 40% of current shop owners think that Leeds is a good city for independents.

6.2 Support for Independent Retail

Despite the issues which independent retailers are facing there are support networks and services which are already in existence. This next section will attempt to summarise the services currently offered nationally, as well as those locally, summarising what they offer independent retailers. This is not an extensive list.

6.2.1 Leeds City Council - http://www.leeds.gov.uk/Business/Pages

The council can provide detailed information on the Leeds economy, labour and property markets in the form of tailored reports to assist companies with their feasibility studies for expansion or relocation. A number of reports on key sectors, including manufacturing, shared services centres government departments and agencies, can be downloaded from the resources section of the website.

The website also has access to databases which house the commercial property lists available for sale or letting in the city, both council and privately owned. It has links to information regarding licences and waste management which may affect retailers and other small businesses. The site also has external links to other supporting bodies and a section dedicated to start-ups containing generic information and advice.

6.2.2 BIRA - British Independent Retailers Association - http://www.bira.co.uk/

“The British Independent Retailers Association (bira) is the voice of independent retailers. We are the leading trade association for independent retailers in the UK. Our aim is to provide first class support, business services and specialist representation to our members. We represent approximately 7,500 members


http://www.leeds.gov.uk/Business/Pages

http://www.bira.co.uk/


across the UK from single retail outlets to small chains, dealers, suppliers, manufacturers and distributors”.

BIRA is a paid membership body which provides a large variety of services to independent business across the country. They offer services in finance, including their own bank, legal advice and assistance, insurance services, training and work courses, as well assistance in things as varied as web design across to shop fitting.

6.2.3 FSB - Federation of Small Businesses - http://www.fsb.org.uk/

“The Federation of Small Businesses is the UK's largest campaigning pressure group promoting and protecting the interests of the self-employed and owners of small firms. Formed in 1974, it now has 200,000 members across 33 regions and 194 branches”. FSB is a paid membership body which provides various services in terms of business support. They hold networking events; provide legal/financial advice, assistance with business planning, and a mentoring programme amongst other things.

6.2.4 Others

Organisation Offer

Membership Organisations

British Independent Retailers Association (BIRA) - http://www.bira.co.uk/ The aim of BIRA is to provide first class support, business services and specialist representation to our members. There are approximately 7,500 members across the UK from single retail outlets to small chains, dealers, suppliers, manufacturers and distributors.

Member Benefits include; Access to the BIRA Bank, Legal and Financial advice, Discounts on; card processing facilities, insurance, training packages, wed design, shop fitting, office supplies, utilities and telecoms.There are also a number of membership communications.

Federation of Small Businesses (FSB) - http://www.fsb.org.uk/ The FSB is non-profit making and non-party political. The FSB is the UK's largest campaigning pressure group promoting and protecting the interests of the self-employed and owners of small firms. Formed in 1974, it now has 200,000 members across 33 regions and 194 branches.

Member Benefits include; Legal protection and advice helpline, Tax advice, Free business banking, Discounts on card payment terminals, Insurance services, Business support regarding marketing and business planning, Access to mentors, Networking opportunities and Access to the Yorkshire Enterprise Club


http://www.fsb.org.uk/

http://www.bira.co.uk/

http://www.fsb.org.uk/



Organisation Offer Associated Independent Stores (AIS) – http://www.aistores.co.uk/ The largest independent non-food buying group of its kind in the UK, with around 260 members. AIS enables independent retailers to profit from the level of buying power and services normally enjoyed by big high street chains – yet with no loss of their independence.

Member benefits include; Good buying terms (with access to major brands as well as exclusive own brand ranges), Business support, Trade shows, Marketing support, Mystery shopping, Personnel and training and Procurement and statistics.

National Federation of Retail Newsagents (NFRN) – https://www.nfrnonline.com/ Established since 1919, the NFRN has over 16,500 independent news and convenience retail members.

Member benefits include; Helpline for legal and commercial assistance, Access to a buying group, Access to tailored insurance, Access to financial offers, The NFRN work with Parliament and MP’s to lobby on behalf of members.

Fashion Association of Britain (FAB) - http://www.fashionassociationofbritain.co.uk/ FAB is the only UK trade association dedicated and tailored to furthering the interests of the independent fashion retailer.

Specialist fashion and accessories section of wider membership organisation, BIRA (see above)

The Booksellers Association - http://www.booksellers.org.uk/ The Booksellers Association is a membership organization for all booksellers in the UK & Ireland, and we represent over 95% of booksellers. The BA represents and promotes its membership and provides a full range of products and services to members

Member benefits include; Links to authors for events, Batch supplier payment systems, Marketing advice, Business advice, information, and training, Access to the ‘independent booksellers forum’ for sharing ideas and best practice, Market intelligence reports, National Book Tokens Programme, Open University Links to become academic ‘stockists’. Access to ‘Indie-Bound’ and Independent Booksellers week for free marketing and opportunities.

Independent Footwear Retailers Association - http://www.ifra.org.uk/ The trade association for footwear retailers within the UK.

Member benefits include; Contacts, Online listing, National representation, Insurance offers, Good deals with HSBC Business banking, Legal advice and Property advice.

http://www.aistores.co.uk/

https://www.nfrnonline.com/

http://www.fashionassociationofbritain.co.uk/

http://www.booksellers.org.uk/

http://www.ifra.org.uk/



Organisation Offer Entertainment Retailers Association - http://www.eraltd.org/ Established in 1988, the Entertainment Retailers Association (ERA) is the UK trade body representing the interests of physical and digital retailers of entertainment such as music, video and video games, a market worth over £5billion per annum.

Member Benefits include; Discounted licences Legal advice Reduced Credit/Debit and rates Entry to industry events

Leeds, York and N Yorks Chamber - http://www.yourchamber.org.uk/

Established in 1851, the network today includes businesses of all sizes and shapes and from a range of different sectors operating from offices in both Leeds and York and North Yorkshire.

The aim is to provide relevant services to business enabling them to develop and prosper and to provide a collective voice to take views and concerns to decision makers.

Member Benefits Include; Range of business support and development information and guidance, Networking events Training workshops Cross sector membership offer. Support for start up through Enterprising Leeds project, Other business development and sector specific support, Mentor and apprenticeship offer.

Online Resources

Organisation Offer www.independentretail.co.uk - The independent retail campaign is a year-round source of support, advice, ideas and inspiration founded by Retail Expert, Clare Rayner. It's aim is to help independent retailers and those who serve consumers to get and stay open for business!

Support includes; Written advice available for downloadcovering areas such as Visual merchandising, Point of Sale, Pricing Strategy, marketing and social media. Access to regular webinars which offer support, advice, ideas and inspiration to independent retailers. Option to list business on the Indie Shops directory – http://www.independentshops.co.uk/

‘Business in You’ - http://businessinyou.bis.gov.uk/ A partnership between private enterprise and Government to highlight support to start-ups and growing businesses and encourage entrepreneurial spirit.

Written advice, videos, case studies, links, tools and tutorials. Register for updates and to store info relevant to your business.

http://www.eraltd.org/

http://www.yourchamber.org.uk/

http://www.independentretail.co.uk/

http://www.independentshops.co.uk/

http://businessinyou.bis.gov.uk/



Organisation Offer HMRC - http://www.hmrc.gov.uk/startingup/ .

On these pages you will find links to guidance on what you need to do for tax and National Insurance purposes when starting a business. Written advice, telephone support, workshops, calculators and tools. Registration service for info and submitting returns.

Start up Britain - http://www.startupbritain.co/

Website offering nationwide calendar of events, offers (Dell, Axa, Paypal etc) and some events/workshops (mainly London based). Initiatives around start up space, highstreets, export support, directory of local support.

Better Business Finance - http://www.betterbusinessfinance.co.uk/

Web resource supported by British Bankers’ Association with involvement of Barclays, HSBC, RBS, Lloyds and Santander. Searchable guides to financial products, fact sheets and guides.

Business and Patent information Services (BAPIS/library service) - http://www.businessandpatents.org

One-stop information service to support business information and intellectual property needs. The team are experienced in dealing with patent, trade mark and business enquiries. Regular networking/support sessions

Technology in Retail

Organisation Offer Shopify - http://www.shopify.com/ Shopify powers tens of thousands of online retailers - the platform allows users to easily and quickly create their own online store without all the technical work involved in developing their own website, or the huge expense of having someone else build it.

Shopify offers a three tiered service ranging from basic, to professional and then unlimited. Offer includes; Professionally designed website Secure Shopping Carts Additional App and Mobile Technology features Blog facilities SEO and Marketing options Social Media Integration 24/7 Support Customer Reports

http://www.hmrc.gov.uk/startingup/

http://www.startupbritain.co/

http://www.betterbusinessfinance.co.uk/

http://www.businessandpatents.org/

http://www.shopify.com/



Organisation Offer O2 Priority Moments - https://www.o2priority.co.uk/local/ This free service allows independent retailers to reach new, local customers – offers can be targeted so when customers are in the area they'll never miss out. It should boost revenue while offering your customers savings. The retailer chooses what they want to offer, the quantities and timings.

This service allows local independentbusinesses to advertise to nearby o2 customers, increasing brand awareness, footfall and revenue. Once the offer is live a retailer can choose to pause, resume or repeat atany time. It is efficient marketing on a trusted service.

Developing your Skills and Training your Employees

Organisation Offer Leeds Retail Skills Academy - http://www.theleedsretailskillsacademy.co.uk/ Offers a range of qualifications and accredited programmes supported by Leeds City College and the National Skills Academy (NSA) for Retail. It also provides bespoke courses for employers and their staff and non accredited programmes for career changers and those thinking of starting their own business.

Apprenticeships and diplomas in retail skills, management, knowledge and fashion retail. The WorldHost™ Customer Service for Retail Programme. ‘Guide to Successful Retailing’ courses - inspired by Mary Portas. Currently offered at a short term discounted rate.

Leeds Enterprise Network - http://www.leedsenterprisenetwork.com/ University of Leeds Spark; http://careerweb.leeds.ac.uk/info/15/starting_a_business_spark (For Students/Recent Graduates) Leeds Metropolitan University; http://www.leedsmet.ac.uk/employability/business-start-up/starting-a-business.htm (For Students/Recent graduates).

Business start-up services including training, mentoring/advice and workshops based at University of Leeds Spark, Leeds Metropolitan University, QU2 - http://www.qu2leeds.co.uk/ Leeds City College - http://inc-yorkshire.com (Focus around early stage businesses in Leeds and surrounding areas. Various advisor and accommodation offers, virtual support and physical hubs).

6.2.5 QU2 Incubation Support for Retailers

QU2 incubator provides a paid-for business support package costing £350 and offering three meetings with a business accelerator and optional attendance at 10 workshops geared at various aspects of running a business. There is also the option for each session to be paid for separately, something which works more appropriately for a ‘concession’ style incubator such as Handpicked Hall. Meetings with business advisors are limited to five - one per month, and cost £95 individually.

https://www.o2priority.co.uk/local/

http://www.theleedsretailskillsacademy.co.uk/

http://www.leedsenterprisenetwork.com/

http://careerweb.leeds.ac.uk/info/15/starting_a_business_spark

http://careerweb.leeds.ac.uk/info/15/starting_a_business_spark

http://www.leedsmet.ac.uk/employability/business-start-up/starting-a-business.htm

http://www.leedsmet.ac.uk/employability/business-start-up/starting-a-business.htm

http://www.qu2leeds.co.uk/

http://inc-yorkshire.com/

http://inc-yorkshire.com/


The series of workshops is run biannually and costs £20 per workshop, with a cap at £140 for seven or above. The following table maps the QU2 offer against the findings of our survey.

Service Feasibility Potential cost Demand

Training/support Assistance with writing a business plan

Likely: offered as part of QU2 business support package – also offer access to trusted business advisors(at extra cost)

Business planning workshop: part of £350 package or £20 individually.

52%

Mentoring by a successful independent retailer

QU2 does not currently have a bank of retail mentors

Part of package 55%

Mentoring by a specialist business advisor

Likely: offered as part of QU2 business support package

Part of £350 package or £95 individually

Training in customer service

Not a QU2 priority, but could be available elsewhere

Unknown 28%

Training in marketing


Marketing workshop: part of £350 package or £20 individually

55%

Training in HR Likely: offered as part of QU2 business support package

HR workshop: part of £350 package or £20 individually

48%

Training in finance Likely: offered as part of QU2 business support package – also offer access to trusted accountants (at extra cost)

Accountancy and tax workshop: Part of £350 package or £20 individually.

48%

Training in legal (inc. Health and Safety)

Likely: offered as part of QU2 business support package – also offer access to trusted legal clinic (at extra cost)

Legal matters workshop: Part of £350 package or £20 individually

55%

Training in visual merchandising


Unknown 34%

Training in salesmanship


Sales workshop: Part of £350 package or £20 individually

31%

Financial Assistance Rent subsidies Unlikely: the resources

needed for this are beyond what is available for the project

This would like be a very popular choice but it would only have been possible in council owned building and those which are still council owned are few and far between / not in the areas necessarily conducive to successful retail

Rates relief Unlikely for businesses en mass but could be applied to any social enterprise as part of council policy

The Council can give 80% rates relief to qualifying social enterprises In speaking to many independents as part of this research, this has been the most revisited and discussed topic




Service Feasibility Potential cost Demand Ecommerce

Possible virtual incubator space

Unlikely – aside from the initial set-up costs, the resources required to maintain and run a marketplace would be prohibitive

Initial set up not that expensive but the SEO (etc) would be far more

91%

Ecommerce training – including set up, running, SEO etc.

Likely: offered as part of QU2 Business Support Package

Online marketing workshop: part of £350 package or £20 individually

73%

Training in using social media / new media


Social media workshop: Part of £350 package or £25 individually

61% of those surveyed currently use social media as part of their business to some extent.

Other Technical assistance – e.g. POS software


Unknown

Placement in a large retail store

31%


7 Conclusions

As a sector, we find independent retail to be in relatively good health in Leeds. There are 100 or so independent shops and a further 100 independent food or service outlets in the city centre, and many more in the various town and district centres across the Leeds council area. The economic realities of running a shop – the unpredictable presence and response of customers, the challenges presented by the strength of the chains and supermarkets, the high costs of premises in the best areas – mean that the majority view amongst independent retailers will tend towards pessimism. Despite this, 69% of those we surveyed see Leeds as a good place to be an independent retailer. In stark contrast to many other cities in the north, retail developments are continuing apace in Leeds. Trinity opened in March 2013, the Victoria Gate development is planned for 2016, Kirkgate market refurbishment is imminent, and the Kirkgate townscape heritage initiative was launched in April 2013. All of these developments explicitly recognise the importance of a distinctive independent offer alongside the national and global chains. This reflects a sea change in the world of retailing and is to be encouraged, celebrated, and capitalised upon. The outlook is good for independents. Councils have tended not to get involved in supporting retailers beyond their own tenants. Neither have incubation facilities had significant contact with the sector. The changing environment requires a change of approach, and the commitment of the Leeds Growth Strategy to “create a distinctive retail offer, with opportunities for independent and small traders to open shops and succeed” is important. Many of the business support resources that we have become used to over the past 20 years have now gone. The challenge for the Council and our partners is to make the most of what remains while developing new kinds of tailored support in a time of reducing resources. Good links have been developed with the incubation facilities, Leeds Met’s retail school and Leeds City College, and we must build quickly on these partnerships is we are to achieve our ambitions. Independent retailers have told us that they want help with ecommerce, and that rent and rates remain as significant challenges for early stage businesses. There is strong demand for incubation facilities, both physical and virtual. These themes should be at the centre of public sector thinking as we develop our support offer. The private and third sectors can see the opportunities that Leeds provides for independent retail. New models of retail incubation are being developed here in Leeds which would work well in tandem with public sector support. True cross-sector working, embracing the principles of civic enterprise, should be at the heart of our approach. Getting the word out that Leeds has a thriving and growing independent scene, full of new opportunities, is a further area where we could make a difference. The message is simple and compelling and is backed up by our research. Such work would clearly need to link with the city’s tourism offer and the broader work of Leeds and Partners on promoting the city.




8 Recommendations

We have identified a range of further actions and steps which might help:

Provide an easily accessible and up-to-date source of information on business support available to independent retailers through the Council website.

Continue to support to the city’s independent retail incubators, strengthening

links with public sector incubation: o Assist with recruitment of tenants to existing incubators and work in a

more co-ordinated fashion with other relevant stakeholders and organisations which may offer opportunities that are mutually beneficial.

o Continue to support co-working with Leeds Met through student placements and potential Business Enhancement Schemes within retail.

o Strengthen links with the National Retail Skills Academy hosted by Leeds City College at its Horsforth campus.

Keep track of the changing retail climate in the city centre and seek

opportunities to help independent retailers.

Continue to develop the city centre shopping environment to reflect the customer experience being offered by the large shopping centres.

o The research has demonstrated the importance of the shopping environment to successful retailing and thus, more should be done to the city centre retail areas, with the aim to make them both more visually appealing and consumer engaging.

o This might also include using vacant shop windows and similar for community projects, such as the previous Art in Usual Spaces or Playful Leeds.

Strengthen existing work with Landlords and raise awareness of the advantage

of pop-up shops and their place in the modern high-street Continue our work with retailers, centre managers, agents, landlords and

Tourism, including specific strands of activity promoting the independent retail offer of the city

Consider the commissioning of a second study which would look into the

independent retail within neighbourhood shopping locations and/or town and district centres in Leeds.

o In developing the Leeds economy, our work applies across the whole metropolitan district of Leeds. We will need to adapt our approach to the local circumstances found across the diverse communities that make up Leeds. Supporting independent retail in areas as varied as Armley, Otley, Wetherby and Hunslet is likely to require a range of approaches and a further study would underpin the development of retail support across the whole of Leeds.

Published by Leeds City CouncilEconomic Development

working with Leeds Metropolitan UniversityEnterprise Office

For further information, contact:Tel: 0113 247 8073Email [email protected]

Date of publication: 25/4/13

Date post:	25-May-2020
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