Glasgow retailers refuse to go extra mile for marketing project

Published on Saturday 29 November 2008 13:07

HARD-PRESSED retailers in Glasgow have thrown out plans to promote the city centre because it would have involved a hike in their business rates.

The so-called Style Mile initiative, based on the Z-shape of streets formed by Argyle Street, Buchanan Street and Sauchiehall Street, would have followed the lead of Sydney, the only other city in the world with a similar marketing campaign.

Sydney's Style Mile is crammed with fashion boutiques and designers, including Collette Dinnigan, Morrissey, Lisa Ho, Alana Hill and Leona Edmiston.

But the steering group for the Style Mile in Glasgow said that retailers were already suffering from the downturn in spending and they could not afford the proposed 1% levy to market the idea.

The group is now talking to the public and private sector about developing an alternative plan to retain the city's position as the number two shopping destination in the UK after London.

It was intended to give a boost to major retailers in the area, including House of Fraser, Debenhams, the Buchanan and St Enoch's shopping centres and designer stores, such as Vivienne Westwood in Princes Square.

The Style Mile was to have been the linchpin for Glasgow city centre's aim of achieving full Business Improvement District (BID) status. BIDs exist across the world as partnerships between local authorities and business to invest in communities.

It is estimated the Glasgow Style Mile would have brought in 4.5m over five years by increasing footfall through more targeted marketing, improved shopping and leisure facilities for local customers and tourists, and developing better access to the area.

Glasgow Chamber of Commerce, the city council and city centre businesses were behind the project.

Lesley Ballantyne, steering group chair and managing director of John Lewis in Glasgow, said: "As a result of the worsening economic climate and its effect on the retail sector the Style Mile narrowly missed out on reaching the voting threshold to attain full BID status."

She described it as a "significant missed opportunity".

The ballot for the project resulted in 51.75% of 143 votes cast by eligible businesses going against the Style Mile BID.

Ballantyne added: "The indications are that the result has been largely influenced by the difficult and worsening economic climate and its effect on the retail sector. These are unprecedented times and to be so close to a 'yes' vote illustrates the substantial local support that we have had."

The east of Scotland already has Essential Edinburgh, a BID project, which covers the area between Princes Street and George Street.

In an effort to attract more shoppers into Glasgow and limit the effects of the credit crunch during the festive season the city council is introducing parking promotions and an embargo on non-emergency roadworks next month.

Cities in the UK are increasingly losing shoppers to the internet and are having to compete with London's new Westfield complex, Europe's largest urban retail centre. They are trying to cope with what is being tipped as the least lucrative Christmas since the recession of the early 1990s.