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| This work was commissioned by The Scottish Office in 1996 to inform understanding of the role of small shops and their contribution to the retail industry in Scotland. The study was to provide information on the role of small shops; to consider the ways in which planning policy affects small, and particularly, independent shops; to assess whether the planning system can draw useful distinctions between small shops generally and independent retailers; and, advise on the economic issues generally affecting small shops. |
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| Main Findings and Recommendations |
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- inadequacies in the data on retailing in Scotland hinder policy development in this area;
- certain locations eg. rural village shops and isolated stores perform a community and social role which is worthy of support;
- an enhanced support mechanism focused more on business development as well as subsidy provision would have more likelihood of ongoing success;
- better dissemination of examples of good practice for small shops could enhance learning about operational opportunities;
- individual neighbourhood centres need to be assessed to see if they have outlived their original function and can thus be replaced;
- local authorities should consider commercial improvement areas for selected streets and centres which have a particular retail function;
- the role of LECs with respect to retailing needs to be investigated further.
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| Background |
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| Small shops are seemingly everywhere. Most people have some view over what constitutes a small shop and how valuable it is to their location or shopping patterns. Small shops however are a complex phenomenon. Many physically small shops are run by large corporate retailers. Many large franchise organisations operate through small shops. Small shops may therefore be part of large businesses. Yet, the small shop in most people's minds is that of the independent retailer or local shopkeeper operating on his or her own. |
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| Independent retailers have been under severe competition from multiple retailers. Their number has been apparently in decline. Their functions and roles have had to adapt to the changing circumstances of a modernised and highly efficient retail sector changing as consumer expectations and demands have changed. National chains have been able to expand their operations and have generated enormous consumer traffic. Small independent retailers have struggled to be competitive in such a situation. Whilst there are many good examples of small, independent retailers, there are also many others which do not operate effectively or efficiently. In some locations, particularly rural ones, the shop may be the social and community heart of the village and function as an essential service. In others, the function of the small shop may be to provide diversity and vitality. |
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The research therefore aimed to: - provide information and a more informed understanding of the role of small shops and their contribution within the retailing industry in Scotland;
- indicate the extent to which planning policies both alone as well as in association with other policies, affects the role of small shops in general in Scotland and the independent retail sector in particular; and
- advise on whether there are specific measures the planning system can adopt to safeguard the role of the small shop consistent with the Government's commitment to competition and innovation in the retail sectors.
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| The Study |
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| The study involved a three-stage process of literature review, planning authority surveys and consumer and retailer surveys. |
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| Literature Review: A literature review of previous research on the issues around small shops generally and the planning system interaction with small shops in particular was undertaken. In addition, a contact network of academic researchers across Europe was used to ascertain the situation in other countries and whether their policies could relate to Scotland. |
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| Planning Authority Survey: Local authority planning departments were surveyed through a questionnaire on retailing, planning and small shops. A focus group of ten respondent authorities was mounted to further investigate the issues. In addition, a survey of LEC involvement in this area was undertaken. |
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| Retailer and Consumer Surveys: Retailer and consumer surveys were undertaken in 10 locations across Scotland representing 5 locational types where small shops have particular representation and problems (secondary streets, suburban centres, neighbourhood centres, rural villages, isolated shops). Personal interviews with 65 retailers and 395 consumers were completed successfully. |
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| Survey Findings |
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Survey work with the local authorities and LECs concluded that: - there was widespread awareness of the decline of the small shop sector and the problems this posed;
- the rural shop was clearly identified as an essential service;
- small shops in urban and peripheral estate areas were seen to be multi-functional in commercial and social roles, but were often suffering trading and other difficulties;
- policies towards small shops, particularly in urban areas were viewed as currently limited and ineffective;
- there was little 'planning' distinction that could be drawn between independent and multiple small shops;
- the role of LECs with respect to retailing could be clearer.
- The key findings from the retailer survey work were :
- rural village shops and isolated stores have a more restricted catchment area but a wider, social or community function than other locational types;
- convenience style outlets tend to open 7 days a week, with long total hours;
- village shops appeared to be doing better than the other types with neighbourhood centres in particular having problems;
- the main constraints on the businesses were competition effects, reduced shopper traffic and finance;
- respondents felt that the local authority could do more for the sector, but that retailers also could bear more responsibility;
- the local authorities could do more in terms of finance burden easing and environmental improvements; central government could tighten planning legislation and reform the tax and rate system for retailers and/or small retailers; the LECs should support existing businesses more rather than increasing competition with new business start-ups.
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The key findings of the consumer survey were: - the profiles of the samples drawn suggest a form of dependency on small shops which does vary from locational type to type;
- rural, neighbourhood and isolated stores have a very different catchment to the suburban and secondary streets, being more local and pedestrian based and with shopping trips being more frequent i.e. more of a convenience approach;
- the main food shopping by the consumer groups was superstore based with the non-food pattern being more dispersed and less focused;
- rural village respondents used the small shops because they wanted to support them; this was in direct contrast to neighbourhood centre respondents who criticised the high prices and used them only in an emergency;
- rural shops were also perceived as having a social or community function whereas secondary streets were seen as a thoroughfare or a mixed use location;
- satisfaction levels in rural village and isolated shops are high, being associated with high service levels. Secondary streets were more poorly viewed and were seen as lacking in quality and variety. Neighbourhood centres were mixed, with poor variety and quality as well as prices reducing satisfaction ratings;
- as with the retailers, the consumers identified local authorities as being mainly responsible for the small shop sector. However consumers bore the most responsibility in rural villages and isolated shops;
- destination retailing, such as the post office, was viewed as important in conditioning travel behaviour.
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| Concluding Remarks |
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| The Role of Small Shops |
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| Small shops play a vital function in certain areas and locations, typically a convenience and community function in rural villages and isolated locations. In other locations they may play an ancillary function providing reasons for visiting certain locations and extending choice. Small shops provide a colour and character to Scottish retailing and act as seed-beds for some Scottish entrepreneurial talent. Small shops also provide valuable finance to other business services, often on a local level, through the services they purchase. |
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| The Role of Planning Policies |
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| Planning policies affect the small shop to a considerable extent, with restrictive policies reducing competition and limiting the effects of 'undesirable' developments, and positive policies e.g. shop support schemes, appearing to be of benefit. Small shops in neighbourhood centres are being by-passed by many consumers. They need to be enhanced where the catchment has potential or removed where there is no viable future and alternative facilities are available. |
| Activities in the area of business development and environmental improvement would seem to have potential for significant expansion in selected locations. Financial constraints on many small shopkeepers are real and could be eased through selective assistance. However the biggest potential benefit for individual small shopkeepers would be in the provision of co-ordinated business development. |
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| Potential Measures for the Planning System |
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- Selected secondary streets could be designated commercial improvement areas and benefit from co-ordinated improvement activity.
- Village shop support schemes in rural areas should be introduced or expanded and the 'hurdles' for entry considered carefully. These schemes should concentrate on business advice and training as well as capital improvements.
- Planning policies should have presumptions against developments which compete with supported shops.
- Neighbourhood centre provision could usefully be re-assessed given modern shopping patterns and a withdrawal from some centres and their replacement by other non-retail facilities may be appropriate.
- Pharmacy and post office locations should be restricted to local, community type functions and locations in the main with other provision near places of work and high traffic levels.
- Petrol filling stations with convenience style shops should be located very carefully in rural areas so as to avoid the introduction of disadvantage to some local consumers at the benefit of passing traffic.
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| "Retailing and Small Shops", the research report summarised in this Research Findings, is available priced £5.00. |
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Cheques should be made payable to The Stationery Office and addressed to:
The Stationery Office Bookshop,
71 Lothian Road,
Edinburgh EH3 9AZ
Telephone: 0131-622 7050, or Fax: 0131-622 7017 The report can also be ordered online from:www.thestationeryoffice.co.uk |
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Further copies of this Research Findings may be obtained from:
The Scottish Office Central Research Unit,
Area 2J, Victoria Quay,
Edinburgh EH6 6QQ
Telephone: 0131-244 7560 |