This article first appeared in West London Business, September 2010
Localism and retailing in London
DPP
Localism has emerged as a central theme of Government policy affecting all areas of activity and intervention. The principles are classically Conservative based on reducing the state but differ in that they do not give control back to the market or business. In quite the reverse, they seek to give control to the community at a local level, a very Liberal theme. Whether this marriage of philosophies can work remains to be seen and the publication of the Decentralisation and Localism Bill this autumn will be the first test.
In respect of planning policy the approach will rely on light central guidance with decisions being made at the local level and backed by strong local engagement.
As a signal of how things may develop, the GLA under Mayor Johnson, have published new guidance on retail planning policy in London which seeks to influence policy development and calls for changes to planning law and the use classes order. Cornered Shops- London’s Small Shops and the Planning System was published in July and seeks an agenda of far greater control of retail development at a local level, focussing on smaller shops and independent traders.
The report identifies the contribution that small independent shops make to the community and the value they offer to “Lifetime Neighbourhoods”, a key theme of the emerging London Plan. The report also notes the decline in the independent retail sector and the growth in multiple operators getting involved in smaller format stores.
Mayor Johnson calls for changes to the Use Classes Order that identify small shops and those essential convenience store types to be differentiated from the wider A1 use class. The Mayor calls for a competition test to be introduced into PPS4 to limit the threat from supermarket operators to small format convenience stores and seeks greater protection for independent traders from retail impact through a clarification of the impact tests in PPS4. He also seeks to differentiate between retail chains and independent traders through the use classes order.
Whether this strategy and policy is one of long standing or a response to the Portobello issue that has been in the news this year remains to be seen. The Royal Borough of Kensington and Chelsea (RBKC) have been heavily criticised for failing to prevent the loss of indoor stall markets at Portobello Road where landlords have sought to improve their covenants by letting premises to chain fashion outlets and so changing the character of the area. It is true that RKBC could not prevent this from happening under current planning legislation, but I am not sure that knee jerk changes to the planning system are required.
The evolution of shopping areas is one which drives the property investment market. 25 years ago Covent Garden was an edgy centre full of independent traders, stalls, unique shops, bars and restaurants underpinned by a vibrant street theatre tradition. Now Covent Garden is a strong commercial retail centre based around multiple chains and blue chip tenants. It has lost much of its edge but this simply reflects its evolution. The operator here has retained the right mix and balance of tenants and uses to ensure that the area continues as a success.
Current examples can also be found in Brick Lane where the authenticity of the food and culture in the area is giving way to a more commercial and less edgy feel or Borough Market where strong controls over the market are required to ensure that it continues to have the original earthy feel rather than the feel of a sanitised up market foodhall.
These centres will all evolve, but they all require investment and good management. The key perhaps to managing these character areas is through clearly identified local strategies, recognition of local strengths and weaknesses and defined area based retail strategies that reflect the uniqueness of the place. PPS4 allows for this in policy formulation intended to give planning authorities the power to identify the special characteristics of an area that need to be protected from impact or change. A detailed strategy for Portobello market could recognise the contribution of indoor stall markets and seek to prevent their change through restrictions on shop fronts and servicing; local convenience stores can be protected where the district retail strategy recognises their importance and sets impact policy thresholds for particular types of development low enough to ensure they are properly considered.
Many of the tools already exist in PPS4 that allow planning authorities to structure their policy frameworks to achieve Mayor Johnson’s objectives. Moving the planning system beyond land use considerations to concern itself with the operators of shops or competition between operators will have a negative impact on investment in retail property and could lead to centre’s stagnating. A good clear strategy developed between land owners, the Council and the community they serve will be the strongest way to protect and promote local retail centres without cutting off the benefits of investment, competition and choice that the evolution of the retail market can bring.