Jump to content

Recommended Posts

strae Wrote:

-------------------------------------------------------

If an independent high street is

> thriving, how does it come to be slowly and surely

> taken over by chains?


Sometimes because, as an area gets more successful/prosperous, the shop Landlords (most of the business premises on the Lane are rented rather than owned) increase rents to the point where only a chain, able to subsidise high rents with tax breaks and other corporate strategies, can afford them.

maxxi Wrote:

-------------------------------------------------------

> strae Wrote:

> --------------------------------------------------

> -----

> If an independent high street is

> > thriving, how does it come to be slowly and

> surely

> > taken over by chains?

>

> Sometimes because, as an area gets more

> successful/prosperous, the shop Landlords (most of

> the business premises on the Lane are rented

> rather than owned) increase rents to the point

> where only a chain, able to subsidise high rents

> with tax breaks and other corporate strategies,

> can afford them.



Yep, economies of scale mean that you reduce unit costs and increase your margins - making it possible to afford the bigger rents. A sole trader, even one that is popular, may struggle to compete.

Strae you are not understanding the point of chains vs. indies.


The chains can afford to offer cheaper products because of the economies of scale. Indies have to charge more as they are producing less.


People may vote with their feet, but there's a lot more to it than that.

Hi Angharad_L,


My point is exactly re economies of scale - i.e. we make choices as customers and these choices have consequences for us and the high street. If we want to keep a high street full of uniques / independents / smaller businesses, there is a "cost" to that, because we would need to pay more / lose out on the economies of scale and scope that larger chains may be able to offer.


The other argument is trivial, i.e. if we could choose between a corporate chain and a local business at the same price for the same quality, we would not be having this debate, because then it would come down purely to personal (subjective) preference and there is no point debating because lovers of red will not be able to convince lovers of blue and vice versa.


The point I was trying to make was simply acknowledging that I am torn between the best deal for my bank balance (cheaper prices) vs what I would ideally like (a thriving high street of independent shops, at potentially higher prices) and I think this is a choice we all ultimately make. So in a way, WE (more than the shops themselves) are responsible for the way our high street turns out. If we want more independent shops, we should support them with our custom. We shouldn't blame or demonise the chains for trying to provide goods and services at good prices - and clearly if they take over the high street, then there must be enough customers who prefer that.


I for one, will try my best to spend as much time (and money!) as possible in the shops I enjoy and wish all the plucky people who try and start something on North Cross, LL, Bellenden etc the very best. Long may it last!

At the risk of being a bit geeky about it, when considering competition (especially between retailers) the classic analysis is based on PQRS - Price, Quality, Range and Service - which better reflects the reality of how consumers choose than considering price alone. Successful independents compete strongly on the 'QRS' elements or they go to the wall.


Unfortunately this doesn't address the issue re commercial landlords seeking ever higher rents, but, with various premises in LL and elsewhere empty at the moment, you would hope that landlords might not be quite so ambitious.

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Latest Discussions

    • This week's points has to be a contender for worst collective set of scores ever. Week 33 points...   Week 33 table...
    • I would love something like this..I remember the one where Gails is now..It had some bric a brac furniture and 2nd hand clothes, I don't remeber the Oyster bar. The issue with the one on Zenoria St-And I speak as a long time habitué of Portobello, Kensington Market, Alfies,Spitalfields,Covent Garden (back when it had a decent vintage market on Mondays in the 80's and Early 90's) ..Was that a lot of the stuff they sold looked a bit meh..like a bad car boot fair. I also remember when we first moved here a small indoor market on the corner of North X road and Felbrigg rd that had bric a brac and bits of furniture..That one had some good stuff. I think the secret is in having a good mix of stalls selling well curated pieces at decent prices...It would also be good to have a few tables and rails available to rent for one-off sellers (car boot style) by application. When I lived in Notting Hill I used to do Portobello under the flyover a couple of times a year and made really decent money because people tended to go there on sundays for the Casual stallholders rather the same dealers selling the same stuff.
    • Highly recommend landscape gardener Jasper Davis. Jasper designed and built me a bespoke summer house.  He also transformed my garden including natural paving/sleepers and planting. Can't recommend him enough.IMG_9568.HEIC Contact Jasper on 07966 251778
    • Is anyone  replacing their clip on buggy parasol?  Looking for a foster mum friend please
Home
Events
Sign In

Sign In



Or sign in with one of these services

Search
×
    Search In
×
×
  • Create New...