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East Lothian Courier

Trader: we need a miracle

Bryan Copland • Published 19 Jan 2012 09:30 Mobiles Print Comments 16 Comments

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HBA chair Joe Forte and member Pat Lemmon in an all-too-quiet Haddington High Street

Ten town businesses ponder closure - just as plans for new supermarkets go before council

HADDINGTON town centre needs a "miracle" if it is to have a bright economic future, a trader has said, as new data shows at least 10 businesses could consider closing within the next three years.

The warning comes as plans by supermarkets for edge-of-town stores in Haddington are about to go before councillors.

A 'health check' carried out on the town centre found that 80 per cent of businesses which participated fared worse than expected between November 2010 and November 2011.

At least one business suffered "serious financial difficulty" and 45 per cent had "some financial difficulty" over the period.

Turnover decreased for 58 per cent of businesses, while 70 per cent saw a drop in profits.

The survey also found that 45 per cent of participating business which rented their premises - about 10 in total - did not intend to renew their leases when they finished, most likely within the next three years. Five more were uncertain whether they would opt for renewal.

Only nine per cent of outlets had a better 12 months than expected - the same proportion saw profits rise.

Alarmingly, 61 per cent of traders predicted a deterioration in the business climate over the next 12 months. Only six per cent expected an improvement.

The data was gathered by East Lothian Council's economic development division and released in a report, 'Haddington High Street Town Centre Survey'.

A total of 85 independent retailers - listed in the East Lothian Business Directory and members of Haddington Business Association - were invited to take part in the survey, with 38 responses.

At a meeting of Haddington Community Council, Pat Lemmon - an HBA member who runs The Toy Box on High Street - said: "We need a miracle now. The Haddington health check makes very grim reading."

East Lothian councillor Tom Trotter, Haddington ward member, added: "The figures are scary, to say the least."

Over the period, 35 per cent of outlets reduced their staffing levels, while only three per cent - approximately one business - increased their workforce.

However, more than half of businesses agreed to a marketing campaign being developed for Haddington and had their own website.

The figures tied in with bleak monthly figures for November across Scotland, during which like-for-like sales had dropped by 1.3 per cent from the previous November.

Joe Forte, chair of HBA who runs a sports shop on High Street, said the data painted "quite a black picture" but vowed to remain positive.

He told the Courier: "The survey portrays a town under acute pressure like many other towns in Britain at the moment."

"Apart from businesses feeling the severe effects of the current economic downturn, traders feel that the relocation of council staff to Macmerry, the current increase in internet trading and the non-food items currently being sold by Haddington Tesco have also added to a drop in sales.

"This, and our concerns over high rents within the town, has made a large percentage of the businesses question whether or not they will be renewing their leases during the course of the next three years, should these conditions continue.

"As ever, we remain committed to working with East Lothian Council (ELC) to find solutions. Also, Urban Animation is about to start its report on the 'Haddington Vision'; we welcome this and acknowledge the strong support this has received from ELC and the other community groups.

"Hopefully constructive ideas will come from this that will assist us all in the fight back."

A council spokeswoman said: "The survey was carried out at a time of great economic uncertaintywhich is causing major uncertainty for both retailers and consumers across the UK.

"The economic development unit works at a local level to try to stimulate economic growth with initiatives such as the Christmas Shop Local campaign and targeted promotions of the county to day visitors and other tourists.

"Business support work is also provided such as seminars, trade association marketing grants and business advice for retailers."

The survey was the first of its type to be carried out in Haddington for "some time", but the spokeswoman added that similar surveys could be carried out in other county towns in the near future.

Iain Gray, East Lothian MSP, said: "At first glance this report seems very negative, but the important thing is to use the information to work together and improve Haddington town centre.

"If we want to grow businesses, we first need to identify what the challenges are and I think this report does exactly that. In a county like East Lothian our town centres are clearly important drivers of economic activity despite competition from out-of-town and online shopping.

"We need to make sure that as much as possible is done to promote shopping locally. I have already arranged a meeting with Haddington Business Association to discuss what I can do to help.

"I was interested to see the survey showed strong support for a marketing campaign and a loyalty scheme for Haddington town centre. I know towns elsewhere in the country have introduced loyalty schemes and I think there is a lot of merit in the idea.

"I try to do as much of my shopping locally as possible and I would certainly back the introduction of such a scheme.

"I remain convinced that Haddington can be one of the most attractive town centres in Scotland, and we all have a role in doing what is needed to make that aspiration a reality."

He added: "Having an office on Tranent High Street as I do, I know that these challenges are not confined to Haddington.

"Most of the survey results will be relevant to other towns in the county too and I am sure small firms outside the Haddington area will be keen to explore how they too could grow their business in the coming months and years."

The £20,000 study by Urban Animation is due to be completed by the end of April.

Applications by Sainsbury's, and Tesco to build out-of-town stores will be heard by the council next month.

Traders fear any new out-of-town development would have a detrimental effect on their businesses, and are keen to see Tesco remain in the centre.

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