Struggling hardware independents slam business rates
Published: 4 November 2013
Garden machinery was the stand-out performer amongst independent retailers in the third quarter of this year, but the DIY and hardware sector barely managed to hold its own.
The latest quarterly sales monitor figures from the British Independent Retailers Association (BIRA) also show that more than half of respondents overall are seeing growth or stability, with those finding less in the till falling below half for the first time in a year.
However, the losers seem to lose more than the gainers gain, so the overall performance is worse than in the second quarter.
Of all the product sectors covered by the report - which covers such diverse categories as clothing, books, furniture and computers - garden machinery and tool hire put on the best sales. They rose 10% on last year's third quarter, although they were not quite as good as the 12% year-on-year figure recorded for this year's second quarter.
DIY and hardware independents' year-on-year sales were more or less flat in the third quarter and on 2013's second quarter, while cookshop/housewares retailers showed a marginal improvement.
The issue of business rates comes up in many of the comments made by retailers within the report.
Complaints specifically from DIY and hardware retailers include: "Business rate rises suggest that services for business should be getting better but we all know of a long list of things that councils do or do not do that are anti business." And: "I am the only local shop in the town that pays business rates, The other shops have paid nothing for the last two years. I have contacted the council and been told it is due to the size of my shop."
Another reports: "The high cost of business tax has meant we cannot afford staff - we are stripped to the bone so we have had to cut the shop into three and lease them out." And: "Business rates needs to be reviewed or it will be the end of the high street."
Predictably, cookshop and housewares retailers are up against the same problem. "Since April 2009 my rates have increased by 30%! My turnover certainly hasn't," says one. And another complains: "Business rates is our biggest problem. Everybody knows this. The fools on the hill don't care. All a*******s."
And from a furniture and floorcoverings independent: "We are persecuted as we need space to sell our product and in a dying high street. Parking charges and restrictions do not help. Halve the rates."
Parking is an issue for another DIY and hardware retailer too. "All high street and secondary road businesses are affected by parking restrictions imposed by local councils. This is definitely a major reason for the decline in high street sales," he says.
The report also highlights a regional gap in performance. Some areas, such as the Midlands, are enjoying sustained growth, while others, such as the north east, continue a long bad run.
Despite the mixed results, BIRA found that the number of independents now feeling confident about the year ahead has risen to over half.