The commercial landscape of High Street shops has witnessed a significant transformation since the onset of the pandemic. John Weston, an associate partner at Brown and Co. in King’s Lynn, Norfolk, reports that rental rates for many High Street businesses have almost halved from their pre-pandemic peak. This dramatic drop in rents has led to a resurgence of local businesses in the area, breathing new life into the once-struggling High Street.
Local traders and businesses that were once unable to afford High Street rents are now finding it feasible to establish themselves in this prime location. The more affordable rates have had a noticeable impact, luring a fresh wave of tenants to the heart of the town. As Mr. Weston puts it, “The rental levels have come down significantly from the peak.”
However, it’s not all smooth sailing. Business rates continue to be a significant burden for many tenants. In some cases, tenants are paying more in rates than they do in rent. This ongoing challenge highlights the need for a comprehensive review of the business rates system, echoing the sentiments of Dame Sharon White, the chairwoman of the John Lewis Partnership.
The situation becomes more poignant as the last Wilko stores in King’s Lynn and Norwich close their doors this week. Although these stores were reportedly trading successfully, their closure is attributed to the nationwide struggles of the company. This trend is not unique, as three other Wilko stores in Norfolk have already shut down, resulting in dozens of lost jobs.
In light of such developments, Mr. Weston emphasizes the necessity of scrutinizing the backstories of retailers like Debenham’s and Wilko, as their failures have profound implications for towns across the country. Without intervention, the High Street faces a bleak future, and radical changes may be on the horizon. As Mr. Weston aptly summarizes, “Something needs to be done; otherwise, the High Street as we know it is no longer going to function, and I don’t think anyone wants to see as radical a change as that.”
In conclusion, the reduced rents on the High Street have breathed new life into local businesses, but the burden of business rates remains a pressing issue. The closure of well-performing stores like Wilko underscores the need for a comprehensive review of town centers’ challenges and issues to ensure their continued vitality.