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Bill Boler Director, Investment & Physical Regeneration Business in the Community Scottish Centre for Regeneration Town Centres and Local High Streets.

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Presentation on theme: "Bill Boler Director, Investment & Physical Regeneration Business in the Community Scottish Centre for Regeneration Town Centres and Local High Streets."— Presentation transcript:

1 Bill Boler Director, Investment & Physical Regeneration Business in the Community Scottish Centre for Regeneration Town Centres and Local High Streets Learning Network Launch Event 12 th February 2009

2 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

3 Scottish Business in the Community Supporting Brokering Challenging Find out more at

4 Can Retail Investment make a difference?

5 Case Study A Bank In Harlem?

6 Harlem: Perception vs. Reality

7 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

8 Harlem issue Money flowing out of community Need to keep spend inside Under-served Market Bring people back

9 Community Benefits: The Halo Effect Increase Consumer Demand Increase Disposable Income Increase Local Jobs Increase Local business sales Increase Local Spending Increase Security Increase Consumer Traffic Attract Additional Investment Provide Competitive Offering

10 Case Study Perceptions Low Income High Crime Rate Not Our Customer

11 Crime rate Buying power Middle class presence lower than midtown 40% shop outside Harlem 20% HH > $50,000 Case Study: Address Perceptions

12 New market information Cash Economy Street Retailers Cheques Cashed shops % 1st generation immigrants Income/Spend ratios 20% additional Household Income

13 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)

14 What happened? 2nd in sales in the 144-store chain Sales psf > than the overall Pathmark and industry averages BEFOREAFTER

15 BEFORE What happened? Harlem USA – a 275,000-square-foot, retail and entertainment complex AFTER

16 What happened?

17 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.

18 The US isnt the UK/Europe = Are there any lessons?

19 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.

20 Under-served Markets Model Retail Investment Employment Local Business Support Increase footfall Attract additional investment Multiplier effect

21 Creative and cultural focus clusters music, media, ICT mirrors Londons 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 Research Brixton

22 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

23 Regulation Its the Economy, Stupid Its the planning/delivery Mate Time is £ Investment is measured against other investment opportunities Regulation vs. incentive

24 Planning & Deprived Areas

25 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.

26 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

27 PPS , 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)

28 USM Lessons Small/Local Business Retail as a Catalyst Retail Jobs

29 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

30 Retail Jobs

31 USM Lessons Small/Local Business Retail as a Catalyst Retail Jobs

32 Settepani - Café Xukuma - Clothing Turning Heads - Hair Salon Native - Bistro Harlemade - Clothing Case Study: Harlem US Local Business

33 VS Customers also can't find the very specialized selection of African, Caribbean, Blues and Hip Hop music that The Record Shack offers.

34 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 US Local Business

35 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 Support for local retailers

36 Local contracts Cleaning Landscaping Security support Waste disposal Building maintenance tasks –Interior Designers –Visual Merchandisers Connect Investment to Enterprise Strategy

37 Greater Easterhouse Development Corp Landscaping Waste disposal Maintenance Connect Investment to Enterprise Strategy Local contracts

38 Connect Investment to Enterprise Strategy

39 USM Lessons Small/Local Business Retail as a Catalyst Retail Jobs

40 Retail-led regeneration Why it matters to our communities?

41 Community Benefits Impact on People and Society - Less crime (and less fear of crime) - New housing (and improved value of housing) - New community and health facilities - Pride for the place - Improved cohesion Economic Impact - Improved accessibility to jobs and training - More support and opportunities for start- ups and local businesses - Improved spend and income - Levering investment Place/Space Improvements - Improved accessibility and connectivity - Better transport in general - Public realm improvements - Cleaner public places - New ideas in urban design Why retail-led developments matter Overall Findings

42 The Case Studies 3. The Centre Feltham

43 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.

44 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 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 rooms

45 The Centre, Feltham – Transformation Economic, Social and Environmental ImpactsEvidence 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, Jennys Cafe and Celeste Jewelery. E: Evening EconomyFeltham 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 crimeLandscaping 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 elementBarratt providing 800 dwellings as part of the redevelopment S: Diversification of TenureProvision of Key worker housing as well as private dwellings S: Community FacilitiesA 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

46 Before and After – The Centre, Feltham (Progress made) According to IMD indicators, between 2004 and 2007 Felthams 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 2007Progress IMD12,34511,669 Income12,92410,473 Employment18,39915,667 Health16,30814,786 Education, Skills & Training9,10110,021 Yes Barriers to Housing6,01910,258 Yes Crime10,65710,219 Living Environment20,25721,016 Yes

47 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 ( , 2000 not comparable) at lower layer Super Output Area level (by development) Byron Place (Lower Layer SOA)ProgressDalton Park (Lower Layer SOA)Progress IMD 2004IMD 2007IMD 2004IMD 2007 Overall IMD9,574 10,586 7,194 8,337 Income13,660 15,600 12,361 12,231X Employment4,141 4,576 3,005 3,542 Health Deprivation and Disability1,993 2,105 2,764 3,108 Education, Skills and Training8,809 12,976 4,890 6,904 Barriers to Housing and Services29,365 31,068 30,998 32,165 Crime24,956 23,716 X 13,625 15,806 Living Environment31,310 31,734 20,525 24,064

48 Case Study Transactions per month 5000 Breakeven 6000 Profitable Projected: 5000 after 1 st Yr Actual: 30,000 in 3rd month

49 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 arent limited to town centres Research; Measure impact Lessons

50 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


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