Comment: Creativity can find a solution to reverse downward trend

Alas, its historic status has offered little protection against the ravages of the economy and, today, about 14 per cent of shops are vacant with a further 5 per cent in the midst of closing down for various reasons. Such statistics make for grim reading, and put in the context of a national Scottish vacancy rate of 9 per cent they show how much the once-bustling location is suffering.

Inevitably, the economy shoulders most of the blame for such a decline and it is true that current pressured conditions have afflicted Princes Street and other locations like it.

As consumers have cut back on spending, stores that were once viable propositions have been undermined and, as a result, large numbers have closed. Yet this is only part of the story and at least two other factors need to be considered.

The first is a national phenomenon: the rise of the internet. Today just under 11 per cent of all retail sales are made online. This doesn’t mean the traditional store is irrelevant, but it does mean that retailers need fewer high street outlets to service demand. One of the predominant trends in today’s retail market, even among healthy retailers, is “right-sizing” – chains reducing their store portfolios to fit the internet era.

In assessing the woes of Princes Street, a second consideration is a little closer to home: the disruptive tram construction that has dragged on for many months. As beneficial as the work will inevitably be in the longer term, in the here and now it has made the street less attractive and has reduced footfall and affected trading. Arguably, the last things retailers need during these more challenging times.

That the vacancy rate is so high, and appears to be rising, is a matter for some concern. Indeed, one of the real difficulties for both individual shopping streets and town centres is that once a high vacancy rate takes hold it can be very difficult to reverse. As more empty shops spring up, the area becomes less attractive to consumers, footfall goes down and it then becomes a less viable location for retailers. More shops then close and so the vicious circle continues.

For Princes Street this is arguably a particular problem: the location is well known and it’s a destination for tourists, many of whom have high expectations about what they’ll find there. If delivery continually falls short of what people expect, the reputation of the street could become permanently tarnished.

Putting a brake on the decline is far from easy, but with a bit of creativity and imagination it is possible to make a difference. Making sure vacant units look as attractive as possible by using attractive hoardings or “wrapping” goes some way to mitigating a sense of decline. Being flexible about tenants and encourage “pop-up” temporary shops also creates a solution, if only over the short term.

Longer term, however, the key has to lie in creating an attractive, unique and different retail experience which is appealing to shoppers. That might mean looking beyond the traditional names and adding new independent stores to the tenant mix.

In many ways, Princes Street has a better chance than most to succeed. Its name, history and location give in a natural advantage. It now just needs a lot more energy and effort to restore it to its former glory.

• Neil Saunders is the managing director of Conlumino Retail Analysts