West Midlands one of only four UK regions targeted by retailers for new stores

THE West Midlands is one of just four regions identified by the UK’s top 100 retailers as still having the potential for more shop openings.

The region joins Scotland, the South West and London as being under-provided for, according to a report by UK law firm TLT and global retail research agency Conlumino.

Travel hubs are seen to have the best growth prospects. But, although the historic attraction of guaranteed footfall and time-pressed consumers still stand, the ability for travel hubs to support click & collect services is part of the driver towards increased investment.

Birmingham’s New Street Station and Grand Central is thought to be one of the best examples of the ability of a transport hub to generate new retail opportunities.

Perran Jervis, partner and head of Retail & Consumer Goods at TLT said: “When looking at opportunities for growth by region in the UK, the West Midlands continues to offer great potential for retailers. Developments like Birmingham New Street show how retailers are keen to invest in major rail hubs.”

However, business rates are still a millstone for many retailers and a barrier to investment in new stores; more than half (53%) believe that business rates will have a more negative impact this year than last.

“Business rates will likely hit investment in the high street, with 44% of retailers planning to reduce the number of new store openings as a direct result. Others will reduce the size of existing premises or shut stores altogether,” added Mr Jervis.

“Landlords may also face rent review requests from retailers to minimise the impact of the recent rates revaluation, which will see some retailers facing rises of 45% in the space of a year, despite transitional relief.”

Government plans to give local authorities the power to cut rates received mixed reviews. But, over a third were hopeful that local authorities would set rates more sensitive to local trading conditions.

Other barriers to investment in new stores included planning restrictions on new developments and the fragmented ownership and disjointed asset management prevalent in many town centres.

Mr Jervis said: “It is clear that more needs to be done to strengthen land acquisition powers to facilitate redevelopment of town centres. Doing so will help retailers compete with improved out-of-town retail developments and online shopping.”