Retail Change in the UK

Retailing is a major component of Western European economies. It accounts for about 13 - 14% of GDP of most countries. Although the number of shops in the UK has fallen from around 400,000 in 1955 to 279,000 in 2004, the amount of floorspace has risen. As a result there are fewer but larger shops.



Prior to the mid-1960s, most shopping in the UK was done at local shops for everyday items such as groceries ('low order goods') or in urban centres for clothes and furniture ('high order goods') [N.B. your work in Year 10.] The shops selling the high order goods could afford the more expensive rents for property in the CBD. Their location made them easily accessible for people living in the surrounding area. Most shoppers used public transport into the urban centre or walked to their local shops.



This trend still exists, but it is in decline as new retailing patterns emerged. The nature of shopping has changed for many people. The 'everyday' goods are now purchased weekly or even less frequently in supermarkets. Shopping for high order goods has become, for an increasing number of the population, a leisure activity involving a drive to an out of town shopping centre or retail park. Shopping replaced fishing as the UK's largest leisure activity in 2005.

DECENTRALISATION

This trend began way back in the 1950s in the USA with a desire to relocate businesses in larger facilities offering easy parking and polarised businesses designed to capture younger and more affluent customers. Parrallel to these locational changes were changes in the organisational structure of retailing with a decline in independently owned small traders and an increase in large company owned stores (c.f. the movie You've Got Mail with Tom Hanks and Meg Ryan).

Globalisation has also come to retailing with companies such as Carrefour, Tesco and Wal-mart hypermarkets operating across the USA, Europe and South East Asia. Over the last twenty years there have been many changes in the methods of selling, largelly facilitated by new technology. These range from large discount warehouses and teleshopping to online shopping and auction sites and themed markets and tax free shopping zones, together with a wide variety of self service variants from drive through to self check out.

The most visible impact has been the physical development of large bespoke planned out of town shopping centres or retail parks. These too originated in America in the 1950s with the concept spreading to Europe in the early 1960s on the back of US military bases in Germany. By the mid 1970s several large scale schemes had begun in the New Towns such as Milton Keynes and Telford. The multi purpose mega mall concept did not appear until 1986 under the guidance of Sir John Hall a property developer in the North East of England who was instrumental in creating the Gateshead Metro Centre (initially 160,000 square metres).

Three Waves of Decentralisation in the UK

i) 1960 - mid 1970s Food-based super stores

ii) 1970s - evolution of Retail Warehouses selling DIY, motor components, carpets, electrical goods (' white goods') and furniture.

iii) mid 1980s - Regional Shopping Centres


Why decentralise?
Demand shift in population to suburbs and more recently counterurbanisation to rural areas. The movement is by largely younger, more affluent and mobile people who favour retail parks and superstores. With increased car ownership and better mobility combined with increased female employment has resulted in late night and extended weekend shopping opportunities.
Organisation Changes to the structure and scale of retailing have lead to the growth of large scale multiple or retail chains which enjoy economies of scale from bulk purchasing.
Land costs The high cost of city centre land has made it very expensive for space consuming activities such as superstores. Developers of the large scale shopping centres offer a variety of inducements to encourage the major prestigious brand names to relocate (c.f. the links in 'Out of Town' in my next blog).
Labour Access to labour also encourages decentralisation. Retailing has become increasingly dependent on a part-time female labour workforce. (N.B. influx of migrant workers and students impacting on this trend).
Technological changes Computer technology has made a major impact on instore efficiency and coupled with just in time delivery enabled the large chains to remain open and fully stocked 24/7.


Look carefully at my movie 'Retail change in the UK'




Your notes should cover:

What are the changing patterns of retailing changed?

What factors influenced this decentralisation and relocation?

Where is the future of retailing?


Here are some interesting links to read and make notes from



http://news.bbc.co.uk/1/hi/uk/3943665.stm











Check out my blog on 'Out of town shopping centres'