Retail developments are an important mechanism in the revitalisation of our communities, which will suffer from the current slowdown in the retail-led development pipeline, warns retail property organisation BCSC.

The industry body revealed the findings of its latest research, published in conjunction with Business in the Community.

The research report – Retail-led regeneration: why it matters for our communities – was conducted by global real estate advisor DTZ and identifies the wider benefits of retail developments including economic growth such as job creation and opportunity, but also quality of life factors such as improved public space and neighbourhood areas, new housing, increased civic pride and community cohesion.

The research focuses on the impact of five retail schemes including: Byron Place and Dalton Park in East Durham; Glasgow Fort; The Centre Feltham in Hounslow, London; and the Bullring, the Mailbox and Castle Vale in Birmingham. The research involved detailed analysis of socio-economic data as well as interviews with local stakeholders such as local authorities, businesses and community groups in each of the areas.

In the current economic climate, the importance of retail centres to the social and economic development of our towns and cities is becoming increasingly evident. In 2007, retail was the third largest employer in the UK, employing around 3 million people on a full-time basis and 1.75 million in part-time work. The sector is generally recognised as offering opportunities and employing a wide range of different socio-economic groups including low income families and black minority and ethnic groups, helping to promote and support social inclusion.

The report shows how the Glasgow Fort development has provided skills training and job aftercare services to help local residents secure employment and remain in work. The development has also contributed to a noticeable decline in crime, vandalism and drug use in the surrounding area. In East Durham, providing residents with a much-needed town centre retail offer through the transformation of Byron Place has provided a catalyst for improvements to local public transport services and helped to generate additional inward investment from the private sector.

The research also demonstrates that where urban design has been used effectively - such as in Castle Vale – there have been benefits in terms of public realm and civic pride. By opening up the frontage of the shopping centre and improving accessibility, the development is more inviting, providing safer access walkways and public squares that contributes to an improved sense of pride among local residents and changed perceptions of Castle Vale.

According to the report, the best way to improve social impact is for local authorities and developers to work in partnership to implement specific strategies on maximising employment training opportunities for the disadvantaged, providing support for existing business and addressing relevant social issues such as health and crime.

Martyn Chase, Head of Retail at DTZ and BCSC President comments: “With the retail development pipeline likely to be curtailed over the next few years, communities badly in need of investment and regeneration may suffer.

“For developers, there is a clear commercial benefit in taking social impact into account. Understanding future customers’ needs and concerns about communities early on is more likely to create a long-term successful relationship with all parties.

“Clear guidance is needed on how to measure the social and economic impact to help support local authorities when assessing the viability and benefits of new developments.”

Bill Boler, Director of Investment and Physical Regeneration at Business in the Community adds: "In this increasingly tough economic climate, ensuring that investment benefits the communities and people that need it most is more important than ever. Retail-led regeneration can reconnect communities to economic opportunity, leveraging direct employment, local business support and additional investment."

The report concludes that six key factors will maximise the return and make the difference for local communities in retail-led development:
· Attract a good range and quality of retailers
· Have a plan for your partnership – this should be simple and clear
· Keep lines of communication open and build trust
· Provide fit-for-purpose urban design
· Give high priority on sustainability and viability
· Add value by going beyond the minimum requirements and regulations

For more information or a copy of the report, contact Davinder Jhamat, Acting Knowledge and Research Manager, BCSC on davinder.jahmat@bcsc.org.uk