The Grimsey Review: Retailers’ reaction

Carphone Warehouse chief executive Andrew Harrison said: “Getting people to stump up money to try and protect places that there is no demand for is a step too far.

“No one has asked us our opinion on the high street until now and it’s asking for money. It will be just another cost on top of many others including business rates.”

“I think the recommendations on car parking and Wi-Fi access are sensible.”

Waterstones managing director James Daunt: “It’s lamentable. We already contribute massively and disproportionately.

“For most of us a little extra profitability will be invested back into our businesses. This could quite literally bankrupt a few people. It’s not just small retailers that are in difficulty.”

On retailers paying business rates: “It is a goose that has been laying golden eggs now for some time. [Councils] need to look after that goose.”

99p Stores Hussien Lalani said: “Retailers contribute a lot to the economy already. We are the biggest net collectors of VAT for the Government and the largest private sector employer for the Government. On top of that we contribute to Business Improvement Districts, as do a lot of retailers. I support the spirit of the idea but I need to understand the detail.”

A John Lewis Partnership spokeswoman said: “Whilst we certainly welcome proposals that seek to revitalise high streets and help them flourish, we do not think the idea of a new one off levy on larger retailers, is the answer. Any new approach must avoid penalising one particular part of the retail sector. We do however, welcome proposals to reform business rates and parking charges.”

One large grocer said: “A levy of that size on a big four grocer could put them in profit warning territory. If it were a levy on profits it might be a different matter. If this was forced upon us by law it would be a very serious issue.”

Hobbs chairman Iain MacRitchie said: “We certainly welcome this review - the state of UK high streets encompass a wide-range of issues which impact all of us and it is important that these issues are highlighted and further solutions sought. Multichannel shopping will continue to reduce the need for physical space and the reshaping of high streets must be proactively addressed.

“The suggested initiatives and interested parties need to be joined up into a common plan and purpose. We agree with having skilled and motivated people in a team, working with a clear, locally supported and long term vision for each community. Having a single and focused minister would also be useful to combine the required policy initiatives.  

“Retailers increasingly face a disproportionate amount of cost through business rates and other charges. Areas need to be more accessible and cost effective for shoppers and as well as parking costs, business rates must be reformed to produce a fairer tax system. We should look at utilising existing budgets more effectively before using any additional levies or increased taxes.”

Bonmarché chief executive Beth Butterwick said: “The high street is the heart of Britain’s local communities. We cannot let its status dwindle any further.

“Any review of the High street is a welcome investigation and in many cases, the various recommendations proposed are music to retailers’ ears, such as placing emphasis on reinvigorating communities, the suggested freeze to business rates and the performance indicators to measure the economic health of our towns.

“Even in today’s multichannel environment, for our customers in particular, the local community is part of their daily life and strengthening the relationship between retail and community activity can only be a good thing.

“In many cases, retailers are already paying significant charges and should not be expected to pay out any more. A significant amount of thought and detail would be required around the suggested levy for businesses to even consider supporting the concept.”

An Asda spokeswoman said: “This is a valuable contribution to the challenges facing UK high streets. With the rapid growth of online shopping the cost pressures imposed on more traditional bricks and mortar businesses are increasingly restrictive, which is why we welcome calls for a review of the entire business rates system.”

A Morrisons spokesman said: “We are doing plenty at the moment to re-invigorate the high street. We have always played an active role in opening supermarkets in town centres and we are also acquiring properties on high streets through our Morrisons M Local format. We are bringing a bit of bustle back to the high street. We think we are making a significant contribution.”

British Retail Consortium director general Helen Dickinson said: “There is increasing agreement on what needs to be done to revitalise town centres. We all agree that punishing motorists with unaffordable parking charges is bad for high streets and counterproductive for local economies.

“We all agree that local authorities need to present a more coherent vision of how they see their town centres developing. We all agree that retail businesses are paying too much in tax. That is why we believe a new levy on large retailers is not the answer, and a complete reform of the business rates system from top to bottom is essential for the future prosperity of our town centres.

“With the prospect of economic recovery on the horizon, the time for ambitious and progressive thinking is now.”