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Think tank says spread of retail multiples is reducing diversity and taking profits away from local communities

Introduction

A new report by influential independent think tank the New Economics Foundation (NEF) suggests that the proliferation of chain stores in traditional high streets is transforming them into "clone towns". The report argues that this phenomenon is driving out local businesses, resulting in a loss of diversity, consumer choice, and damage to local economies. This article delves into the findings of the NEF report and presents differing viewpoints surrounding the issue.

Identikit Britain

The NEF has launched a nationwide initiative asking citizens to submit pictures and surveys to illustrate the extent to which chain stores have taken over local high streets. The aim is to raise awareness about the rise of "clone towns" and their economic consequences. Andrew Simms, policy director of NEF, argues that the spread of chain stores has suffocated local businesses and diminished the unique identity of towns across Britain.

The Loss of Local Identity

The NEF report, titled "Clone Town Britain: The Loss of Local Identity on the Nation’s High Streets", highlights planning decisions that have favored retail multiples over small, independent businesses. The report claims that the resulting loss of diversity leads to a decline in consumer choice and the redirection of profits to remote corporate headquarters. This, in turn, negatively impacts local economies.

A Threat to Arts, Media, and Culture

Simms argues that the dominance of chain stores is not limited to physical high streets but also affects wider trends in arts, media, and culture. He warns of a future where a handful of huge companies control various aspects of daily life, including news, entertainment, leisure activities, and utilities. The risk, he states, is that the unique character of towns will be further eroded.

Defense of High Street Developments

While the NEF report raises concern about the impact of chain stores, retail experts offer a differing perspective. Fiona Moriarty, director of the Scottish Retail Consortium, believes the report exaggerates the homogeneity of towns, asserting that Scottish towns incorporate mixed shopping and do not all have the same shops. Similarly, Alan Hogarth of the Confederation of British Industry suggests that larger multiples cater to consumer demand and that niche retailers can still thrive against larger competition.

Government Support and Fairness

Martin Blackwell, regional development director for the Association of Town Centre Management, shares mixed feelings about the NEF report and highlights the need for support for small retailers. He argues that independent retailers face challenges not due to consumer preferences, but rather due to tax and government regulations. Blackwell calls for more government assistance for small retailers, emphasizing the need for fairness in terms of access to development grants.

The Impact on Hotels

Loss of Local Flavor

Just as chain stores potentially diminish diversity on high streets, the hospitality industry also faces challenges when it comes to maintaining local flavor. With the rise of international hotel chains, the individuality and uniqueness of local hotels can sometimes be overshadowed. This can lead to a loss of cultural experience for tourists and a decrease in the support of local economies.

Competition and Consumer Preferences

While larger hotel chains offer convenience and recognized brand names, it is important to consider the impact on smaller locally-owned hotels. Similar to the argument made by Fiona Moriarty, competition from chains can sometimes limit the market share for independent hotels. However, there is increasing evidence that niche boutique hotels with a unique selling proposition can thrive and attract a specific clientele who value local experiences.

The Role of Government and Support

Just like small retailers, small hotel businesses may face challenges in terms of taxes, regulations, and access to development grants. Government support and fair policies are crucial to ensure a level playing field and allow local hotels to flourish. This support can be in the form of incentives for preserving and promoting local culture, financial aid for infrastructure improvements, and marketing assistance to increase exposure and attract a wider customer base.

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