Retail report says UK has too many shops

One of Britain’s top retailers says Britain has too many shops and is calling for a one-off tax to fund new businesses.

Retail gurus Bill Grimsey and Mary Portas disagree over the best way to rescue our ailing high streets. Picture: Michael Gillen

Bill Grimsey, a former head of both food stores Iceland and DIY chain Wickes, reckons the government must accept that “bricks and mortar” retail can no longer anchor Britain’s high streets and must find more ways of making town centres vibrant.

Grimsey has produced a rival report to that of retail guru Mary Portas, whom he accused of being too “nostalgic”.

He says a tax on larger retailers would create a fighting fund of £550 million which could be used to sponsor start-up businesses and other alternative high street ventures.

The cash would be raised by a levy of 0.25 per cent on companies with a UK turnover of more than £10m in 2014.

Grimsey said: “The big players have made a lot of money out of the high street over the years, and they should put something back.

“They could achieve far more than the government has and leave a lasting and powerful legacy. If this money was spent wisely it could make a massive difference.”

Grimsey’s self-funded report – due to be presented at a House of Commons reception tomorrow – will also call for a minister for high streets and say that town retail centres will need to incorporate education, arts, residential, leisure and technology facilities as part of a major overhaul.

Among 31 recommendations, he will also examine business rates, use of technology to create “networked towns”, car parking, access to finance for small business, charity shops and planning regulations.

Portas yesterday hit back at Grimsey’s attack on her report, saying his attacks were “absolute rubbish” and that another report was not needed.

She will appear before the Commons communities and local government select committee to discuss her review, which was completed more than 18 months ago and included recommendations such as setting up 27 “Portas Pilots” that shared £2.3m of funding.

A £10m High Street Innovation Fund was also set up to help councils with the highest incidence of empty properties and those most affected by the 2011 riots.

Meanwhile, the retail sector is showing signs of healing itself, as the latest figures show sales were up 1.8 per cent on a like-for-like basis in August, compared to the previous year.

On a total basis, sales were up 3.6 per cent, according to the latest report from the British Retail Consortium (BRC) and accountancy firm KPMG, published today.

BRC director-general Helen Dickinson said: “While these figures don’t quite reach the lofty heights of what was an exceptional July, they’re keeping the good run going and are well above the 12-month average for sales growth.

“Taken hand in hand with a recent uptick in consumer confidence, the signs are that many of us are feeling a little more positive about the economic outlook and responding well to good deals and new autumn collections alike.

“Overall, these are very encouraging figures which maintain the sense that a consumer-led recovery is tentatively taking shape.”

While the growth was broad-based, the home categories were the best performers, rebounding from July when the good weather discouraged shoppers from thinking about indoor improvements.

Food was the slowest category due to the tough comparatives because sales were boosted by the Olympics last year.

Online sales of non-food products grew 15 per cent in August versus a year earlier, its best performance of the year so far.