Little shops holding austerity Britain together

Although the austerity years have hit independent shops hard, these small businesses are becoming a powerful force for change in Britain’s communities, according to the latest retail study from insurance company AXA.

The last decade has not been kind to Britain’s little shops – they have seen costs rise and profits shrink alongside family budgets, and one in 10 local stores have closed down during this period.

However, AXA’s research shows that the survivors are quietly pulling together to improve and sometimes save their communities, with eight out of 10 participating in community projects with other shop owners.

More than half of the retailers surveyed said that their local shopping district is in decline due to under-investment; 51% actively lobby the local council for improvements to local infrastructure and amenities, and one in five are on a committee that organises community events aimed at attracting outsiders to their area – D-Day celebrations, Christmas markets and even children’s book readings.

Where lobbying fails, 28% said they had joined with other shop owners and invested their own profits into improvements. This comes on top of the average £8,000-£9,000 a year such shops already pay in business rates.

All in all, AXA estimates that local shop communities:

– Organise 110,700 community events each year, amounting to two for every UK town and village.

– Have got parking bans lifted in 43,200 streets, and 24,000 streets repaved.

– Maintain 51,000 urban green spaces.

– Act as 90,000 fundraisers for UK charities, as well as making 32,000 regular donations of food and goods to help society’s poorest.

Additionally, eight in 10 small retailers said that they ensured their shops reflected their local area’s history and character. In rural locations, this brings important economic benefits – 72% of village shops provide retail space for local craftsmen, artists and food producers, and 30% said their shop attracted tourists to their village. Consequently, the pace of closure of village stores – 300 a year – represents a pending crisis in Britain’s countryside.

At the sharp end, those located in Britain’s inner cities provide an informal support network for homeless people; a quarter said they provided help directly to those sleeping rough in their locality. Likewise, a quarter have hired someone previously living long-term on benefits, and 15% have hired former prisoners looking for a second chance.

The study also suggests that local shops are a lifeline for Britain’s growing elderly population, both financially and socially. A third of independent shop owners said that local pensioners would struggle to find an alternative if they closed.

Darrell Sansom, managing director of AXA Business Insurance, commented: “Britain’s small shops have been squeezed, and we are still seeing closures, particularly in rural areas. Our study shows the flip-side of this picture.

“Through the years of crisis and austerity, these little shops have pulled together and formed powerful local networks that are proving extremely durable and effective in getting things done. In the poorest areas of the country, shop owners truly see themselves as engaged in the daily struggle together with their customers; and across the country, local shops are the glue that holds communities together and help people feel a sense of local identity and pride.”