Melton’s empty shop units: Special report on the town’s economy

It’s clear that more and more people shopping online is having an impact on footfall, not just in Melton but on high streets across the UK.

High shop rents and business rates have also been cited as reasons why some have had to close up.

But the situation is not as bad in Melton as many other towns.

While the average vacancy rate for shop units in the UK is a worrying 12 per cent, the figure in Melton town centre is only half of this, at six per cent.

And there have been smaller indepedent traders starting up in recent months, with Mother Hubbard’s Dessert Cupboard opening in Market Place, Ben Jackson relaunching Melton Snooker Club in King Street and Becky Dakin and Marcus Jefford’s Luck and Boo at Apteeki revamping an existing vegan restaurant in Burton Street.

The perception of many townsfolk remains that there are too many empty business units in the town centre, though.

So the Melton Times has been speaking to some of the local experts on this issue - town centre manager Shelagh Core, estate agent Helen Vesper-Smith and Melton Borough Council - to find out more.

Shelagh Core - manager of Melton BID (an organisation which seeks to enhance the vitality of the town centre as a business centre and a tourist destination):

Reflecting on the situation in Melton, Mrs Core told the Melton Times: “Business rates and rising business costs are affecting many businesses, nationals and independents and we have sadly seen the closure and relocation of an increasing number of businesses at the end of last year and in January, with an increasing vacant unit rate now in the town of six per cent and a footfall decrease of 5.6 per cent on last year.”

Mrs Core says the BID team is able to monitor how many people visit Melton town centre as a result of its installation of a WiFi network for the town and a springboard footfall counter system.

The counter records footfall on a 24-hour basis, with average dwell time and journey mapping allow them to assess footfall trends in the town on a daily, monthly and annual basis.

She said: “Our town’s performance is also indicative of national High Street trends, with springboard footfall figures showing a decrease of national footfall in 2018 of 2.1 per cent and 1.8 per cent in 2019. Boxing Day footfall was the worst in 10 years, with a decline of 8.6 per cent.

“With rising online sales, it has been seen nationally and within the town that, experiences and leisure do generate footfall and we have seen that our strong events programme does encourage visitors to the town centre and increase footfall.

“We hope that the increase in our events, year on year, including the new 1940s Weekend this year will continue to support that footfall and visitor drive into the town centre.”

Melton BID runs a number of initiatives to support businesses and help them attract customers.

It offers a business support grant scheme, with funding available towards internal and external decoration, lighting, security and CCTV.

The launch of Melton Business Connect last year, also seeks to offer a networking opportunity for town businesses to come together, particularly the smaller independents, to connect in an informal setting on a monthly basis to learn from each other and to grow together.

Free social media, digital and marketing workshops are run by the BID for businesses, to give them training in areas such as social media and to help their online presence.

Mrs Core added: “The Town Guide App also provides an invaluable marketing tool for businesses, not only with the town’s online business directory but with the opportunity for businesses to promote local campaigns, loyalty cards and offers on a regular basis.

“We are now in liaison with Utility Auditors and other businesses to offer a business utility audit programme, which will include a free audit and cost comparison for all businesses for business gas, electricity, water, phone and broadband services, business mobile, card payment terminal and EPOS systems.”

Helen Vesper-Smith - partner at Shoulers and Son, a leading commercial and residential estate agency:

Q: Is it a challenge in your opinion for smaller independent businesses to operate units in Melton town centre and, if so, why is that?

Helen Vesper-Smith (HVS): “It is still a buoyant market for smaller shops on simple leases, and for those with no service charges we are finding business tenants wanting to continue to trade here as well as start-ups taking on new tenancies. Melton is holding its own with a six per cent vacancy rate compared to the national average of 12 per cent so it isn’t all negative.”

Q: Is it currently a challenge for your business to find new occupants for vacant shops and offices in the town centre?

HVS: “Small shops in the town centre pay no rates so are generally not as difficult to let and there are some very tempting offers around like the former Londis shop on Sherrard Street where the Landlord has slashed his rent from £18,500 to £9,900 per annum by way of an incentive.”

Q: Do you believe rents for business properties are set too high by some landlords in Melton?

HVS: “The rents are set with reference to what people will pay in the market. We have heard tales of greedy landlords demanding more than what we would consider to be a fair market rent, but the people we act for are not unrealistic in the rents they are asking.

“A few people moving out of the Bell Centre, where there are higher overheads, have asked us to assist them in finding other locations more competitively priced for their needs. We are actively participating with the BID company alongside other retailers and commercial occupants to promote the town centre and all the positive attributes it has to offer, as a centre of independent trading.”

Q: What impact do rates have on empty units and should the government/council do more to help smaller independents compete with chain stores and charity shops, who we understand don’t pay rates?

HVS: “Take a 1,000 sq ft. shop in the Market Place where a tenant has to pay rates at 50 per cent of an ‘unrealistic’ rateable value, this is a huge burden on a business. If the government could reduce the rates payable to say 30p in pound of the rateable value, this may help to alleviate the problem. The burden needs to come down for everyone, and the current business rates system requires fundamental reform to make them fit for the 21st Century.”

Melton Borough Council - aims to regenerate the town centre as part of its corporate strategy which covers the next four years:

Q: It appears to be a challenge for smaller independent businesses to operate units in Melton town centre. Does the council agree and, if so, why is that?

Melton Borough Council (MBC): “We are aware that high streets across the UK are facing declining footfall and increasing vacant business unit numbers, largely due to numerous factors such as changing shopping habits and competition from online retail.

“Melton is not immune to these impacts, however, it has fared better than most. Melton Borough Council is actively working with partners towards creating a more vibrant environment on our high street which in turn we hope will make for a more buoyant trading environment for our local independent traders.

“These plans include developing a more experiential offer through investment in the cattle market, development of events, continual investment in the street scene through support for Melton in Bloom’s attempt to win the Gold Award in this year’s In Bloom competition.”

Q: What incentives are the council offering to help small businesses set up and flourish in Melton?

MBC: “The council has an ongoing commitment to supporting and developing our town centres which are outlined in the developing Corporate Strategy for 2020 onwards and commits the council to delivery of key investment in Melton.

“We are committed to making Melton an attractive place to live, work and visit and have been successful in securing hundreds of thousands of pounds for the development of a Food Enterprise Centre, Manufacturing Zones, a new health and wellbeing leisure hub, as well as investing in Melton in Bloom. “The council has been working with partners to secure over £65million for the development of the distributor road and associated transport strategy which is expected to unlock significant development and investment into the borough. This will lead to additional footfall to our town centres which will enable businesses to thrive and be successful on our high streets.

“Councillors have also lobbied government to address the need to help smaller businesses with rates and business taxes and we hope to see more in the new Budget.”

Q: Do you believe rents for business properties are set too high by some landlords in Melton?

MBC: The council has no control over the business rents charged by private landlords and as such does not comment on the individual rents charged by each property owner, or as to whether rents are generally high in our town centres.

“As a council we work with local businesses to help them develop and offer support and advice in order for them to become sustainable and thriving features on our high streets. Each business enquiry received by the council is handled individually and where possible we will provide support and signposting services as and when required which is tailored to each individual business’s need.”

Q: “What impact do rates have on empty units and is there anything more the government and the council can do to help smaller independents compete with chain stores and charity shops, who don’t pay rates?

MBC: The council has no direct control over the level of business rates charged within the town centre. We act as the collecting agent on behalf of the Valuation Office which sets the rates across the country.

“If a business believes they are being charged too highly for their property they are entitled to appeal the level of rates directly with the Valuation Office. Whilst charity shops are entitled to a discount on business rates, this is not a decision over which the council has any say. Many small independent businesses are also not required to pay business rates should the rateable value of the property fall under £12,500.”