Agenda Item No. 5 REPORT TO: EMPLOYMENT, BUSINESS ...old.wrexham.gov.uk/MinutesData/EmpBusInv/Reports/hccs0213s.pdf · Intelligence Unit sees the retail landscape changing over the

Agenda Item No. 5

REPORT TO: EMPLOYMENT, BUSINESS & INVESTMENT

SCRUTINY COMMITTEE REPORT NO: HCCS/ 02/13s DATE: 9 January 2012 LEAD MEMBER: n/a CONTACT OFFICER: Suzanne Chaloner (Telephone 292179) SUBJECT: Report of Town Centre Task & Finish Group WARD n/a 1. PURPOSE OF THE REPORT To consider the findings and recommendations of the Employment, Business & Investment Scrutiny Committee (EBISC) Task & Finish Group established to consider how to improve the perception of the town centre. 2. EXECUTIVE SUMMARY In September 2012, the EBISC established a Task & Finish Group to focus on how to improve the perception of the town centre. The report includes information considered by the Group in relation to the national context, and impending changes in retail patterns and infrastructure and outlines the four questions the Group focuses on in reaching its recommendations:

What do we want to achieve? Who are we targeting? What is the message? How do we communicate it?

The Group:

considered facts and figures highlighting the difference between some perceptions and reality, including percentage of vacant town units, walking distances between areas of the town and the confidence of local businesses;

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considered information on the town centre’s catchment area which concluded that Wrexham benefits from a more affluent catchment area than the national average;

discussed the strengths and weaknesses of the town centre; undertook a Core ideology Exercise to help identify an identity and message; considered advice from officers on different types of communication and

promotion; considered how best to measure and monitor the effectiveness of the resulting

recommendations. The report makes recommendations to the Head of Assets & Economic Development (in consultation with the Lead Member for Economic Development & Regeneration) on the need for a campaign targeting negative perception about the town centre; who the campaign should be targeted at; what the core message should focus on and how it should be communicated. The report includes details of how the £20k of funds agreed by Executive Board in October will be spent and suggests that the Committee take on a monitoring role in 6 and 12 months in order to consider the implementation and effectiveness of the recommendations as well as future financial options. 3. RECOMMENDATIONS 3.1 That the Committee recommends that the Head of Assets & Economic

Development, in consultation with the Lead Member:

(i) Develop a coherent and cohesive approach to changing the negative perception of the town centre;

(ii) Develop a promotional campaign targeted at indigenous

business / stakeholders and opinion formers / media / and shoppers as powerful 3rd party advocates as well as potential shoppers within the wider 45 minute catchment should also be targeted;

(iii) That specific campaigns, focused in the first instance on retail,

should be developed based on the following key themes and values: Character / Honesty / Friendliness / Integrity Ease of shopping experience / relaxed nature of the town

centre Variety and diversity of shopping offer Enjoyment (including events and creativity)

(iv) Promotion methods should include a mix of traditional and

digital with the ‘wrexhamsayshello’ website as the focus or ‘hub’ of the approach;

(v) Officers should work with businesses and stakeholders to help

promote the ‘wrexhamsayshello’ website;

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(vi) Officers should work with businesses and stakeholders with a view to developing an incentive-based promotion campaign for the future.

3.2 That the Committee commissions monitoring reports of progress with the recommendations in 6 and 12 months (June and November). Reports should include the results of footfall, visitors and business surveys as well as budget considerations. REASONS FOR RECOMMENDATIONS The EBISC is aligned with the Corporate Priority ‘Economy’ as set out in the Council Plan. Outcomes 1 & 2 of this priority relate to people wanting to live, work, learn, visit and invest here and businesses locating and growing here with associated outcome measures including the value of investment in physical regeneration in Wrexham; Town Centre vacancy rate; value of visitor spend. The recommendations contribute directly to the promotion of the town centre and therefore impact directly on these measures. 4. BACKGROUND INFORMATION 4.1 In June and July 2012, the Committee considered its terms of reference and future work programme. Members’ concerns about the future of the town centre were reflected in the decision that a review of the town centre should be undertaken. In September, following consultation with individual members, the Committee established a Task & Finish Group to consider the marketing, perception and promotion of the town centre. The scope of the review was agreed by Committee as follows: To identify the key benefits of Wrexham’s Town Centre / Identify a brand message for the Town Centre and to make recommendations on how best to share that message with the public and businesses in order to improve perception of Wrexham Town Centre. The Task & Finish Group members are Councillors William Baldwin, Dana Davies, R Alun Jenkins, Rodney Skelland, David Taylor and Derek Wright. The group met 7 times between September and November. Support was provided by officers from Assets and Economic Development Department. National Context 4.2 The percentage of vacant units in town centres is often quoted in headlines as a measure of their vitality. In October 2012, the average vacancy rate nationally was 11.3%1. Nationally, concerns about town centres and the future of the UK’s high streets culminated in the Prime Minister asking Mary Portas to undertake an independent review of the Future of the High Street – to help ‘bring back the bustle’ to our town centres. 4.3 The way we shop has changed rapidly and will continue to do so. The Economist Intelligence Unit (EIU) released a report ‘Retail 2022 – How the Economist

1 British Retail Shopping Consortium (November 2012)

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Intelligence Unit sees the retail landscape changing over the next decade’. The report explains how the retail landscape will change over the next 10 years and predicts that online shopping will account for at least a third of UK retail commerce by 2022, up from 13%. John Copestake, Chief Retail Analyst at the EIU has stated that ‘The opportunities for retail over the next decade and beyond are enormous. But where the future markets will reside and the way in which we buy goods will change dramatically. Retailers need to evolve to adapt to this new landscape.’ He predicts ‘Bricks & Mortar will fight back as traditional retailers respond to change by integrating online with physical store offerings. Physical stores will not disappear by 2022 but they will play a very different role. Many shops may operate as little more than showrooms, collection centres, or customer service hubs.’ Task & Finish Approach 4.4 The Group acknowledges that the retail landscape is set to change rapidly, and that the retail offer in Wrexham’s town centre, along with other town centres, is set to shrink in the coming years. It will be increasingly important for the Authority to work with retailers and town centre landowners to encourage them to prepare for and embrace the change. Such work is likely to include the Authority working with retailers to encourage and educate them in the development of digital and online services. The Group felt that the town centre would continue to have a key role to play in the retail experience: overall, the Group felt that Wrexham town centre was well-placed in terms of its potential – it is a College and University town, with a good catchment area, with good transport links and good parking facilities. Vacancy rates in Wrexham are below the national average of 11.3% - in October 2012 it was 10% and has remained relatively static in the past 12 months.2 The town centre needs to promote the ‘added value’ of the physical shopping experience a town centre. Following advice from officers, the Group decided to consider the following questions as a structure for its reviews: 1. What do we want to achieve? 2. Who are we targeting? 3. What is the message? 4. How do we communicate it? Question 1 - What do we want to achieve? 4.5 The scope of the review had previously established that the Group’s recommendations should be focused around improving the perception of Wrexham’s town centre. For the purposes and capacity of the Task & Finish Group, the interpretation and scope of this aim had to be fairly narrow, however the Group did discuss a wide range of options and possibilities which could potentially revitalise the town to attract and generate a vibrant economy. These ideas focused on improving the multi-functionality of the town centre – improving the overall experience of the town centre, including sport and leisure as well as trade. While these are not included as specific recommendations, they are listed at Appendix 2 for information and reference.

2 Action for Market Towns (AMT), Benchmarking report Jan 2011 and October 2012

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4.6 The Group considered the following: views of two members of the Group involved in retail/trade; comments from stakeholders, including those made at the Town Centre

forum; initial findings of the 2012 town Centre Survey undertaken by Assets &

Economic Development; examples of negative press coverage; other Members’ views as shared in previous scrutiny committee

meetings. 4.7 In considering the town centre, the Group discussed how the development of the centre in recent years – specifically with the establishment of purpose-built retail centres at opposite ends of the town (Island Green and Eagles Meadow) had led to some shoppers, businesses and stakeholders (including ‘opinion-formers’ such as bus and taxi drivers) previously used to Queen / Hope / High & Regent Streets perceiving the town as fragmented and as having lost its heart. 4.8 The Group considered facts which highlighted the difference between perceptions and reality: a map of the town centre recently developed by the Town Centre Manager illustrates the proximity of the various areas of the town in terms of walking times. The map is attached at Appendix 1. For example, the walking distance between Island Green and Eagles Meadow is some 8 minutes. 4.9 As previously noted, town centre vacancy rates in Wrexham are lower than the national average at 10%. In addition, the Group considered the findings of the 2011 and 2012 Town Centre Surveys undertaken in October.3 The 2012 Survey (67 responses received) clearly demonstrates an improvement in the confidence of our local businesses in relation to their trading position and future prospects:

Survey Question – In the past year has your -

2011 (%) 2012 (%)

Turnover increased? 0 29 “ “ stayed the same? 0 35.5 “ “ decreased? 100 64.5 Profitability increased? 0 29 “ “ stayed the same? 0 33 “ “ decreased? 100 62

4.10 Sales figures for town centre businesses (average) also demonstrate that while the past few years have been difficult with a year on year downturn in sales, this year has seen upturn.4

3 2012 Town Centre Survey – 100 businesses were surveyed and 67 responses were received. 2011 Town Centre Survey - 50 businesses surveyed and 30 responses received. 4 Wrexham monthly retail trend reporting

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Month / Year Change on

previous year (%)

October 2008 -3.93 October 2009 -0.1 October 2010 -7.4 October 2011 -8.8 October 2012 +6.9

4.11 Perhaps most significant, is the shift in the perception and confidence of the businesses. In 2011, none of the businesses surveyed expected their business to improve in the next 12 months; in 2012, 43% said they did. 4.12 Conclusion Negative perceptions, when voiced, contribute to the promotion of a negative view of the town centre. Therefore there is a need to address and change the negative perception of:

some stakeholders (including local Members, local businesses and ‘opinion formers’ such as bus and taxi drivers), in particular towards the perceived decline in the ‘old’ town centre and the advent of Eagles Meadow;

some local people, in particular towards the perceived decline in the ‘old’

town centre and the advent of Eagles Meadow;

the local press (negative and sometimes incorrect press coverage).

In addition, there is a need to positively influence the perception of potential shoppers and visitors from further afield whose perception of the town centre is rooted in the past and have not visited the town centre since changes such as the opening of Eagles Meadow in 2008, the introduction of Siopa 101 town link bus service this year, free parking after midday in certain council car parks, etc.

Question 2 - Who are we targeting? 4.13 Officers provided advice that the effectiveness of direct marketing between seller and potential buyer is diminishing – people have become so marketing-aware that they have to some extent developed immunity. Rather, the future of marketing lies in encouraging and facilitating active advocacy from others, i.e. happy customers or other people who feel positive about the product who will then go on to spread the word. This is increasingly relevant given the advent and growth of social media. 4.14 Consideration of question 1 has concluded that the perception of the town centre is lagging behind the reality.

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The Group’s view that it is this local advocacy (from some local people, businesses, stakeholders and opinion formers) which is lacking and needs to be targeted and corrected. Wrexham’s Catchment Area 4.15 The Group considered key facts that are available from various retail analysts (e.g. ACORN and CACI), including a 2009 Report on Wrexham Town Centre – Retail Opportunities (Jones Lang Lasalle) which concluded that there was evidence of the need for the retail centre to attract shoppers from a wide catchment. 4.16 Demographics (2009) – Wrexham’s population by age profile within the 45 minute catchment area shows that 25-44 (26%) and 45-64 (26%) are largest profiles. 4.17 2009 data shows the following analysis of Groups within 45 minute catchment:

o 17% are Secure Families o 15% are Struggling Families o Between 10-15% (per group) are Wealthy Executives, Affluent Greys;

Flourishing Families Other 2009 data shows the following analysis of Categories:

Within 10 minute drive catchment = Hard Pressed and Comfortably off are well represented with Wealthy Achievers in the more rural areas;

Within 30 minute drive time = Wealthy Achievers are more evident alongside clusters of Hard Pressed and Comfortably Off;

Within 45 minute drive time = Stronger representation of Wealthy Achievers.

The report concludes that Wrexham benefits from a more affluent catchment area than the national average. Market share 4.18 In terms of the market share that Wrexham achieves from the catchment area, the 2009 Jones Lang Lasalle report and more recent 2011 available figures5 show that Wrexham consistently receives around 13% of the market share, with main rivals being Chester (2009 – 30% and 2011- 23%) and Cheshire Oaks (2009 and 2011 – 9%). 4.19 The 2012 Visitor Survey6 undertaken by Assets & Economic Development (300 responses via web-based survey (available for 2 weeks on the Council’s website and Wrexham.com) plus face-to-face interviews undertaken in

5 Skillsmart Retail, Location Model Wrexham Town Centre, October 2011 6 2012 Visitor Survey – web bases survey available for two weeks in October on Council website and ‘wrexham.com’. 300 responses received. Supplemented by face to face interviews Sat 20 October – 75 reports.

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the town centre identifies that the majority of people visiting Wrexham do so for shopping or for work. The survey also identified a change in the profile of visitors between 2011 and 20127 –

2011 (%)

2012 (%)

Locals (living within a postcode covering the town)

78

48

Visitors (less than 30 minute drive away)

14

39

Tourists (further than 30 minute drive away

8

18

While the survey was a relatively small sample, it is perhaps an indication of the increasing attractiveness of the town centre to those in the more affluent areas of the catchment area. 4.20 Conclusion: The Group has concluded the following, as a result of consideration of the first two questions: Efforts to change perception should be aimed at:

indigenous business / stakeholders and opinion formers / media / and shoppers as powerful 3rd party advocates;

potential shoppers within a 45 minute drive time Question 3 - What is the Message? 4.21 The Group discussed the strengths and weaknesses of the town centre, considered visitor survey information and undertook some ideology exercises with Officers. The key benefits of Wrexham, as identified by Members, were identified as follows:

We may not have the quantity of offer that some larger towns and cities have, but, what we do have, we are good at;

We should promote ‘Shop around in Wrexham’ because of the diversity of retail offer;

While Wrexham has not necessarily got everything a visitor may want, it will have everything they will need

We should promote our independent shops as well as the big names; Plenty of parking spaces (including some free after midday) Located on Key Transport Routes We should celebrate Eagles Meadow; Ability to make a day of it because of diversity of offer in the town centre

(leisure, entertainment (eagles meadow / sports), eating out)

7 2011 Visitor Survey – 100 face to face interviews

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4.22 Members and Officers were unanimous in the view that the message should have longevity and flexibility. Members worked with officers and took part in a Core Ideology Exercise: core ideology is used by big organisations – including some of the world’s biggest consumer brands – to help them decipher what they are truly about and to help them project and identity and message. The exercise asks a series of questions which help identify core values (the values the organisation would stick to through thick and thin) and core purpose (the reason the organisation exists). 4.23 An example of a major chocolate manufacturer used in the exercise uses the repetition of the question ‘why?’ to help understand a core purpose:

Q1. What does the company do? A1. Makes chocolate

WHY? A2. Because there is a market for it.

WHY? A3 Because people love chocolate.

WHY? A4 Because it feels like an indulgence and people want to indulge themselves.

WHY? A5 Because it makes them happy.

So, what is the company’s core purpose? To make chocolate? To fulfil a market need? Or to make people happy? 4.24 The Group answered the same series of questions relating to Wrexham town centre. A number of themes and values about the town centre (and county borough) emerged, which also tied in with the specifics Members had already identified in paragraph 4.21 above: Character / Honesty / Friendliness / Integrity Ease of shopping experience / relaxed nature Variety and diversity of offer Enjoyment (including events and creativity) Given the national factors discussed in paragraphs 4.2 and 4.3 the Group felt that these key themes also contributed to the need to demonstrate the benefit / added value of the physical experience of shopping in Wrexham. 4.25 Conclusion Develop specific campaigns based on the 4 themes, focused in the first instance on retail and shopping, to the identified audience; Question 4 - How do we Communicate? 4.26 The Group considered other work and campaigns currently underway. There was a feeling that while there often were events taking place in the town centre, these were sometimes not well-publicised and there was a lack of a single point of information about facilities, retail offer and events. The need for improved signage was

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also acknowledged, however it was noted that this was already being taken forward following the Executive Board decision in October 2012 to allocate funds to this project within the current financial year. 4.27 The Group heard from the Marketing & Communications Officer about the approach of the Hello World campaign being one of positioning the County Borough as a forward-thinking, inherently innovative place. A website ‘wrexhamsayshello’ which will focus on modern, creative communications, ideas and language to engage audiences, is planned for spring 2013 and will underpin the ‘hello world’ identity that has been developed. The Group was in agreement that any work around perception and promotion would benefit from being linked to ‘wrexhamsayshello’ and that it was important that an approach that had longevity was developed so that it could be built on in the future. 4.28 In consideration of the conclusions about message and audience, Officers considered information from the Marketing & Communications Officer about developments in digital promotion, such as mobile phone based ‘Apps’. The Group agreed with Officers that incentive-based promotions were likely to be among the most successful methods of getting people into the town centre. A coherent and cohesive approach for promoting the town centre should be undertaken, with the ‘wrexhamsayshello’ website as its focus or hub. 4.29 Conclusion

Promotion campaigns should have the ‘wrexhamsayshello’ website as its focus or ‘hub’.

Officers should work with businesses and stakeholders to help promote the ‘wrexhamsayshello’ website.

Officers should work with businesses and stakeholders with a view to developing an incentive-based promotion campaign for the future.

Financial Implications 4.30 The Marketing & Promotions budget in 2012/13 is £42k, however it should be noted that this is committed annually to events and promotions such as Christmas, St David’s Day and the promotion of corporate strategies as well as advertising and website development. The development of the ‘wrexhamsayshello’ website has already been agreed with funds allocated independently of this report. In October 2012, the Executive Board considered savings available in year for reinvestment in Council Priorities in this financial year and agreed that £50k should be invested in promotion of the town centre, including signage. Officers have proposed that up to £20k of this funding is available for promotion and marketing to supplement the signage and have suggested that it could be spent as follows:

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Activity Detail Cost Potential links to T&F

recommendations Radio Campaign

Heart Radio – 12 month campaign (40 hits per day)

£8,000 Heart FM’s audience catchment covers the 45 minute drive catchment area recommended in this report. This would help deliver recommendation (ii)

Window stickers

To be displayed in shop windows (A4 x 200)

£875 This was a suggestion (see Appendix 2) in terms of involving local businesses in signposting to the ‘wrexhamsayshello’ website. This would help deliver recommendations (iv) and (v)

Town Centre Mobile Application ‘App’

A shopping based ‘App’ to offer rewards and incentives

£4,500 This would help deliver recommendation (vi)

Wrexham Town Centre promotional film

5 minute promotional film

£3,000 This would help deliver recommendation (iv)

Wrexham.com advertising

Pop up banner advertising

£500 This would help deliver recommendation (iv)

Newspaper campaign outside Wrexham

6 week campaign This would help deliver recommendations (ii) and (iv)

TOTAL £19,875 While the funding must be spent before the end of March 2013, the outcomes of the proposed actions would continue into 2013/14. As the notes in the table show, the Group consider that the development and delivery of campaigns, if based on the themes and characteristics recommended, would go some way to implementing the report’s recommendations. However, particular emphasis on the engagement with businesses, stakeholders, media and local opinion formers may need further thought and development. 4.31 While acknowledging that changes in perception are difficult to measure, the Group agreed that the outcomes from the recommendations and actions should, as far as possible, be measurable. In particular the success of particular campaigns should be monitored to ensure that limited funds are focused on the most effective methods. Reference was made to measuring the impact of the campaign on annual surveys, such as the footfall survey, Visitor and Business surveys, and it was noted that these are the best measures available at this time. It was suggested that Officers consider including questions about promotional

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campaigns in future surveys to help evaluate their effectiveness. It was also noted that the development of the ‘wrexhamsayshello’ website would provide additional information on website usage in the future. 4.32 The Group agreed that should the Committee and Head of Assets & Economic Development agree the recommendations, the Committee should be recommended to monitor their implementation at a 6 and 12 month period, and that such reports should include available performance information and financial forecast for the promotion of the town centre. 4.33 Policy Framework - The terms of reference of this Committee are aligned to the Council’s Strategic Theme ‘Economy’ as set out in the Council Plan, hence any scrutiny topics identified will contribute to the Council’s priority outcomes outlined in the Council Plan, specifically Priority 1 – People want to live, work, learn, visit and invest here, with key measures being the value of investment in physical regeneration in Wrexham; Town Centre vacancy rate; value of visitor spend. 4.34 Budget – The HAED has indicated that funds are available to be spent up until the end of the current financial year as a result of the Executive Board decision in October 2012. The detail is set out in paragraph 4.30. However, no additional funds have been identified for 2013/14. The Committee will need to consider making recommendations regarding longer terms funding as part of future reports. 4.35 Legal - There are no legal implications arising from this report. 4.36 Staffing – There are no staffing implications arising from this report. 4.37 Equality/Human Rights -.Not applicable at this stage, however individual decisions arising from the implementation of the recommendations in this report may require assessment. 4.38 Risks – The Corporate Risk Register does not identify any significant risks related to the town centre. 5. CONSULTATION 5.1 Both the Head of Assets & Economic Development and the Lead Member have been invited to attend the Scrutiny Committee meeting where the report will be discussed. 5.2 The Head of Assets and Economic Development attended the meeting of the Task & Finish Group on 29 November to consider the final draft of this report. HAED advised the Group on the work of Tourism Partnership North Wales (TPNW) in developing a brand position for north and north east Wales and advised that work undertaken by Wrexham would need to tie in with the overall direction being undertaken by TPNW. The HAED was in support of the findings of the report and its recommendations, and supported use of the funds outlined in paragraph 4.30 to develop the recommendations.

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5.3 The Lead Member for Economic Development & Regeneration was unable to attend the meeting of 29 November. The final report has been shared with him and he will be in attendance at the scrutiny committee meeting.

6. EVALUATION OF OPTIONS 6.1 The report contains recommendations with a range of options for improving perceptions of the town centre. Paragraphs 4.31 and 4.32 make reference to the need to monitor and evaluate the effectiveness of different approaches over time.

BACKGROUND PAPERS LOCATION WEBSITE INFO Changes in Shopping – Retail 2022 – How the Economist Intelligence Unit sees the retail landscape changing over the next decade

www.eiu.com

Wrexham Town Centre – Retail Opportunities (May 2009) Jones Lang Lasalle

Assets & Economic Development Department

Council Plan 2012-16 http://www.wrexham.gov.uk

Report of Lead Member for Policy, Finance, Performance & Governance ‘Resource Allocation Changes linked to the Council Plan 2012-16’ of 9 October 2012

Council website

www.wrexham.gov.uk

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FURTHER INFORMATIONWrexham Tourist Information CentreLambpit Street, Wrexham, LL11 1AY

Tel: 01978 292015, Email: [email protected](People's Market Car Park - LL13 8BB)

Wrexham Visitor Map

Appendix 2 Paragraph 4.5 makes reference to wider discussions had by the group about options and possibilities for revitalising the town centre. The following have been suggested by individual members and do not necessarily reflect the views of the Group.

Transferable parking tickets – enabling users to buy a ticket in one car park

and be able to move around town centre car parks within the purchased

ticket time.

Screen and stage in Queens Square (possibly sell advertising space on the

screen to local businesses)

Develop stickers for shops (possibly around Love Wrexham, Shop Wrexham

/ Love Independents, Shop Wrexham)

Mapping of town centre using ‘Baby Dragon’ footsteps directing people to

different areas of the town and develop Wrexham Baby Dragon

merchandise

Coach parking

Improve frontage of empty shops by using planters and boards to showcase

events and heritage sites around the county to help stimulate tourism.

Boards could be moved as premises come back into use.

Need to focus on helping businesses prepare for the increase in online /

digital shopping – possibly by developing a buy online but buy local + collect

locally

Other concerns raised by individual members

Concern about lack of budget to maintain the quality and appearance of

expensive paving and street furniture which has been provided over a

number of years through specific grant funding amounting to many millions

of pounds, such as by the Welsh Development Agency.

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2

The need for improved signage and to highlight ‘hidden gems’ in our town

centre as well as drawing attention to various facilities.

The need to control number, size and location of A boards and displays

which encroach onto paved areas making the streets appear cluttered and

present a health & safety hazard.