bill boler director, investment & physical regeneration business in the community scottish...
TRANSCRIPT
Bill Boler
Director, Investment & Physical Regeneration
Business in the Community
Scottish Centre for RegenerationTown Centres and Local High Streets Learning Network Launch Event
12th February 2009
Business in the Community
Business in the Community• UK charity founded 1982
• Business-led
• 800 member companies - 90% FTSE 100
• £24 million turnover
Maximising the positive impact of business on society
• Impact in the environment • Impact in the marketplace
• Impact in the workplace • Impact in the community
Scottish Business in the Community
Supporting
Brokering
Challenging
Find out more at
www.sbcscot.com
Can Retail Investment make a difference?
Case Study
A Bank In Harlem?
Harlem: Perception vs. Reality
PERCEPTION (?)
Harlem's Economic Paradox -
“The killing of seven employees at a Harlem clothing store on Friday highlighted many social and political
problems: complicated racial tensions, the easy availability of guns, the inflammatory oratory of
community leaders.”December 13, 1995
Harlem issue
Money flowing out of community
Need to keepspend inside
“Under-served Market”
“Bring people back”
Community Benefits: The “Halo” Effect
IncreaseConsumerDemand
IncreaseDisposable
Income
IncreaseLocal Jobs
IncreaseLocal
business sales
IncreaseLocal Spending
IncreaseSecurity
IncreaseConsumer
Traffic
Attract Additional Investment
ProvideCompetitive
Offering
Case Study
Perceptions
•Low Income
•High Crime Rate
•“Not Our Customer”
Crime rate
Buying power
Middle class presence
•lower than midtown
•40% shop outsideHarlem
•20% HH > $50,000
Case Study:Address Perceptions
New market information
Cash Economy
‘Street’ Retailers
‘Cheques Cashed’ shops
% 1st generation immigrants
Income/Spend ratios
20% additional Household Income
Case Study
Cash Economy
Leakage
Population
• child care, home maintenance,auto repair, etc. ($1B of $6.2B)
• $2.6B in local purchasing power, $1B spent outside
• 413,000 vs. 338,000 (census figure)
“What happened?”
2nd in sales in the 144-store chain
Sales psf > than the overall Pathmark and industry averages
BEFORE AFTER
BEFORE
“What happened?”
Harlem USA –a 275,000-square-foot, retail and entertainment complex
AFTER
“What happened?”
Harlem Strategy
“The City poured money into the housing refurbishment, which
has drawn people there. That in turn helped big business
and local stores take root.”
“The US isn’t the UK/Europe”
=
Are there any lessons?
Investment in Underserved Markets
•To promote private investment in deprived areas”
•Working Group – “must be commercially viable”
•88 ‘Deprived Communities’ in the UK
•4 pilot investments.
Under-served Markets Model
Retail Investment
Employment
LocalBusiness Support
Increase footfall Attract
additional investment
Multiplier effect
Creative and cultural focus
• clusters music, media, ICT
• mirrors London’s growth sectors
24 hour activity
• equally significant day and night economy
Large cash-based economy
• over 50% of transactions in cash higher than national average
• informal economy is considerable
Andrew Carter, The Smart Co.
Unrecorded activity
• consumer spending
• Non-VAT registered businesses and community organisations and groups
• unable to capture value to economy of sole-traders and CBOs
Strong ‘multiplier effect’
• nature of economy (local living employees - small shops) suggests money is circulating several times in the local area
Large lost ‘float’
• people are going out of the area to spend money on products - high-end goods and clothing retail
Bespoke ResearchBrixton
Preference to be part of larger transformation project
Ability to implement required business/format model (i.e. site availability, accessibility, parking)
Competitive Offer: “If we have a choice between an untried market or area and a good site in say Oxfordshire, we would bias the latter”
•Government policy: enabler or barrier
Source: Retailer and Developer interviews
Learnings: Private Sector
Regulation
“It’s the Economy,
Stupid”
“It’s the planning/delivery
Mate”
•Time is £
•Investment is measured against other investment opportunities
•Regulation vs. incentive
Planning & Deprived Areas
Planning & Deprived Areas
Speke neighbourhood country's most deprived
Jamie Carpenter, Regen.net, 13 December 2007
A south Liverpool suburb contains the most disadvantaged neighbourhood in England, according to official figures published last week.
The revised Indices of Deprivation (IoD), which rank neighbourhoods in England in order of disadvantage, found an area of Liverpool's Speke ward to be the country's most deprived.
The indices rank 32,482 "super-output areas" according to factors such as employment, crime and low income.
Super output areas (SOAs) are small geographical areas, which exist below ward level, typically with populations of around 1,000.
Policy-basis: Joining Up Planning, Economic Development & Neighbourhood Renewal
“Encourage investment to regenerate deprived areas, creating employment and an improved physical environment”
Planning & Deprived Areas
PPS 6
• 2.33, 2.53: plan for investment in deprived areas (p14, 18)
• 2.44: give weight to those locations that best serve the needs of deprived areas (p 16)
Planning & Deprived Areas
Planning - 16 June 2006
Lidl won an appeal for a food store with offices above …
…improve provision for residents of a deprived housing area and bring employment benefits.
Blackbird Leys estate (Oxford)
USM Lessons
Small/LocalBusiness
Retail as a Catalyst
Retail Jobs
Retail Jobs
Entry Point
However, 44%, or 4-5 out of 10 people, used to work in retail
“What we found in many cases was the alternative to a retail job was unemployment. Retail is an entry point into the job market.”
In UK, 10% of all employment, or 1 out of 10 people, currently work in retail
Retail Jobs
Prepared by Business for Social Responsibility Page 1December 2002 010803
Recognition ofRecruitmentChallenges
RECRUITMENT RETENTIONEmploying Strategiesto Attract Workers Recognition of
RecruitmentFit with Company ChallengesCulture & Values
ADVANCEMENTExposure Career Paths Recognition of Advancement Challenges Identifyto Career Critical PositionsPaths Commitment to Developing Talent &
Internal Promotion Succession Planning ResponsiveDiversity Retention
StrategiesEvaluating IntermediaryOrganizations as Partners Training &
DevelopmentUse of Recruitment& Selection Tools
USM Lessons
Small/Local Business
Retail as a Catalyst
Retail Jobs
Settepani - Café
Xukuma - Clothing
Turning Heads - Hair Salon
Native - Bistro
Harlemade - Clothing
Case Study: Harlem USLocal Business
Case Study: Harlem USLocal Business
VS
“Customers also can't find the very specialized selection of African, Caribbean, Blues and Hip Hop music that The Record Shack offers.”
“Customers also can't find the very specialized selection of African, Caribbean, Blues and Hip Hop music that The Record Shack offers.”
“Nearly 80% of small businesses in Harlem rent on a month-to-month basis, which makes them vulnerable to rising property values.”
“Nearly 80% of small businesses in Harlem rent on a month-to-month basis, which makes them vulnerable to rising property values.”
“When your lease is finished,
they want to lease to Old
Navy or a big company.”
Case Study: Harlem USLocal Business
Recruitment & training for long term unemployed
Influence Credit Card Supplier for SME •gives a free debit PIN pad•eliminated a $500 administrative fee•reduced a separate monthly fee
Assistance in lease negotiations, parking and other issues that affect small retailers
Pilot a voucher scheme to ensure local independent traders fully benefit from footfall – ie shoppers who also spend in local shops.
Provide pro bono assistance - - marketing, inventory mgmt, etc
Connect Investment to Enterprise Strategy
Supportfor local retailers
Local contractsCleaning
Landscaping
Security support
Waste disposal
Building maintenance tasks
–Interior Designers
–Visual Merchandisers
Connect Investment to Enterprise Strategy
Greater Easterhouse Development Corp
Landscaping
Waste disposal
Maintenance
Connect Investment to Enterprise Strategy
Local contracts
Connect Investment to Enterprise Strategy
USM Lessons
Small/LocalBusiness
Retail as a Catalyst
Retail Jobs
Retail-led regenerationWhy it matters to our communities?
Why retail-led developments matter Overall Findings
The Case Studies
3. The Centre Feltham
Background – The Centre, Feltham
Location:The Centre, Feltham Shopping is located in the heart of the London Borough of Hounslow in South West London, within the M25 and close to Heathrow Airport.
Issues:Before the development the area was home to a concrete, non-user friendly shopping town centre with a series of ‘pound shops’ and the area was not secure at night. The image of Feltham was perceived relatively negatively and associated with Feltham Prison. Housing provision and the retail offer were both poor and the local housing market lagged behind the national market in terms of values. Local community services were disconnected with residents and the retail offer.
Overriding driver for change: Image of the area, jobs created, £200m redevelopment to recreate the town centre.
The Intervention – The Centre, Feltham
Planning and Implementation Stakeholders: Hounslow Borough Council
Developer:Developed by Thornfield Properties plc and owned by Morley Fund Management The centre opened in 2006.
Development Details•One million sq ft and boasting more than 50 retail units – including new brands never before seen in the town.
•Mixed-use development - retail, residential (in the shape of wood-clad apartments above Asda and elsewhere) and leisure components.
•800 homes developed by Barratt Homes•Anchor: Asda, Argos•Major tenants: Matalan, Next, New Look, Peacocks, Sports Direct.com
•2 car parks with over 868 spaces offering convenient access to the shops and community facilities.
•Community Health Centre•Community Library•Travelodge - 115 rooms
The Centre, Feltham – TransformationEconomic, Social and Environmental
Impacts Evidence
E: Provided jobs for local residents
• 550 permanent and 330 temporary jobs created, led by Asda who trained local people
E: Return of footfall and spend to Town Centre
• 60 units, anchored by Asda and Matalan, have led to a footfall of over 1 million per month (an uplift of 7-10%) with visitor spend of between £20 – 20 million (based on certain retailers)
E: Encouraging small local businesses
• The Centre has a number of smaller units designed into the scheme and the developer encourages local businesses to develop and operate there. Longer standing local independent traders located in the Centre include Kard Korner, Planet IT, Jenny’s Cafe and Celeste Jewelery.
E: Evening Economy • Feltham used to be a low-grade shopping destination with a proliferation of “pound shops”. The Centre added a strong mixture of food and drink uses with the retail and new residential.
S: Helping reduce crime • Landscaping to reduce hiding places, local crime partnerships such as the Townlink and Business against crime initiatives, the use of CCTV cameras and working with the police had all contributed to crime prevention has increased and
S: Mixed use element • Barratt providing 800 dwellings as part of the redevelopment
S: Diversification of Tenure • Provision of Key worker housing as well as private dwellings
S: Community Facilities • A new Community Centre houses a library with more than 40,000 active users and a state of the art Primary Care Trust medical centre. A 7000sqft children's day nursery opened in 2007
Before and After – The Centre, Feltham
2004 - 2007 (Progress made)
According to IMD indicators, between 2004 and 2007 Feltham’s ranking in terms of the most deprived wards in the country has improved in terms of:
• Education• Barriers to housing• Living Environment
Average Rank 2004
Average Rank 2007 Progress
IMD 12,345 11,669 Income 12,924 10,473 Employment 18,399 15,667 Health 16,308 14,786 Education, Skills & Training 9,101 10,021 Yes
Barriers to Housing 6,019 10,258 Yes
Crime 10,657 10,219
Living Environment 20,257 21,016 Yes
Before and After - Byron Place and Dalton Park
1997 – 2007 (Progress made)
% economically inactive reduced, higher levels of activity amongst those aged 16-19, 25-34, 50+, although still significantly below regional and national average
% of people of working age who are claiming JSA reduced from 3.5% (1999) to 2.2%
Retarded the decline in the resident population by 2004
Grown the proportion of the population aged 10-19, 20-29, 40-49, 50-59, 70-79, 80+
Trends in IMD domains (2004-2007, 2000 not comparable) at lower layer Super Output Area level (by development)
Byron Place (Lower Layer SOA) Progress Dalton Park (Lower Layer SOA) Progress
IMD 2004 IMD 2007 IMD 2004 IMD 2007
Overall IMD 9,574 10,586 7,194 8,337
Income 13,660 15,600 12,361 12,231 X
Employment 4,141 4,576 3,005 3,542 Health Deprivation and Disability 1,993 2,105 2,764 3,108 Education, Skills and Training 8,809 12,976 4,890 6,904 Barriers to Housing and Services 29,365 31,068 30,998 32,165
Crime 24,956 23,716 X 13,625 15,806
Living Environment 31,310 31,734 20,525 24,064
Case Study
Transactions per month
• 5000 Breakeven
• 6000 Profitable
•Projected: 5000 after 1st Yr
•Actual: 30,000 in 3rd month•Actual: 30,000 in 3rd month
•Link between Housing, Enterprise, Transport & Retail - Where & How can retail be a “trigger” to kick-start regeneration?
•Retail Jobs – unemployed & advancement
•‘Right Mix’ - Enterprise support linked to brand investment
•Plan for the future – Deprived areas aren’t limited to town centres
•Research; Measure impact
Lessons
Think about how Investment can bring benefit
•How it is benefiting deprived areas
•How it will increase local employment and training
•How it will support local business development
•How it will engage & support community issues
•How it will increase socio-economic activity