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easytiger

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strae Wrote:

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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.

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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.

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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.

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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!

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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.

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