My hometown shows that high streets have to change or die

BBC InDepth

My hometown shows that high streets have to change or die

  • Published27 minutes ago
A treated image of closed down retail shops
By

Business correspondent
Emma Simpson

The empty building that used to be the home of Marks & Spencer in Aberdeen is one of the first things you see when you arrive off the train and come into the city centre. The sign has gone, though the shape of the lettering can still be made out; the windows are blacked out and the doors boarded up.

This is my hometown. As a teenager, I spent hours on Union Street, its main thoroughfare, nicknamed the Granite Mile after the local silver-grey stone. It was the place to try on all the latest fashions from the likes of Clockhouse and Chelsea Girl.

The street used to be packed with shoppers from across the north-east of Scotland.

Now, it's pockmarked with empty shops.

"I come to Union Street to take a bus somewhere else… there's nothing to shop for now… it's horrendous," complains Marie Sim, a lifelong Aberdeen resident.

It's a similar story across the country: High Streets, once bursting with shops, hit first by the rise of out-of-town retail centres and then by online commerce.

But Aberdeen is in the thick of an ambitious turnaround plan. The port city has essentially declared war on its empty shop problem, taking an unusually hands-on approach to filling vacant units and bringing long-neglected upper floors of buildings into use.

Closed Marks and Spencer in Aberdeen
Image caption,

The Marks & Spencer flagship store in Aberdeen closed in August, 80 years after it opened there

On top of that, the council is pouring tens of millions into trying to make the city centre a destination again. Like many other places, it's leaning into the "experience economy", with a new indoor food and drink market and a major redevelopment of the seafront.

High Streets are integral to how we feel about where we live. The sight of vacant shops and graffiti can quickly become a vicious circle, deterring shoppers, discouraging investment and leading to anti-social behaviour.

Politicians of all stripes have been trying for years to breathe new life into town centres – and Andy Burnham, who has made a focus on "place" part of his political identity, is the latest. He argues they should become "symbols of Britain's renaissance".

But can it be achieved? And if they're to survive, do town centres need a fundamental rethink?

'Too much retail space'

One in eight properties on British High Streets are currently vacant, according to Green Street, the property and retail analytics company, a number that's stayed stubbornly high for years.

"If there was a silver bullet, it would have been fired years ago," says Jackie Sadek, a former government adviser on urban regeneration, who has spent nearly four decades working in town centre renewal.

One of the biggest obstacles is fractured ownership. Shops and buildings are often owned by dozens of different landlords, sometimes through offshore companies or complex structures, each with their own interests and priorities. That can slow decision-making and make large-scale regeneration difficult.

But even with empty units that are available, you need to find someone willing to take them on.

Many units are old and need modernising.

Vacant and closed store on a high street
Image caption,

One in eight properties on British High Streets are currently vacant

The cost of running a High Street business has also risen; employment costs are higher, and there's the burden of business rates.

Firms need customers. Footfall on many High Streets has been in long-term decline as shopping and services move online, and this enormous structural shift has yet to play out fully.

Two-thirds of town centre experts think there is still 20% to 40% too much retail space, according to a survey by retail body Revo and real estate consultancy Lambert Smith Hampton.

Whack-a-mole shop filling

In Aberdeen's boom years of North Sea oil, from the late 1970s through to the early 2010s, it didn't have to work hard to fill its hotels and restaurants and get the cash tills ringing because of the wealth the energy industry brought to the city.

I remember weekends with friends as a teenager, spending whatever cash we had in the fashion chains and shoe shops. Later came the pubs and bar-hopping, and trips to the art deco Capitol Theatre (now office space), where I saw Duran Duran.

But by the end of 2022, Union Street had hit rock bottom. Aberdonians had long deserted the High Street for a shopping centre, which opened in 2009 next to the railway station.

"They'd fallen out of love with their city," says Bob Keiller, head of Our Union Street coalition, a community-led group formed after an emergency summit to reverse the decline.

The first thing it did was listen to what residents wanted, receiving thousands of submissions. Restoring a bit of civic pride and filling empty units became the focus.

It's been a co-ordinated effort, involving letting agents, the council, landlords, businesses and a big team of volunteers, led by Keiller, a former FTSE 100 CEO, who isn't getting paid. He has a map on his office wall, detailing the status of every property, unit by unit, with colour-coded Post-it notes.

They audited the street, tracking down absent landlords, and logging what was empty and why. Volunteers offered to give the empty properties a clean and a lick of paint, to make them more attractive to let. They also spruced up the streets, picking litter, weeding, and painting bins. A small team still goes out once a fortnight.

A image of Bob Keiler
Image caption,

Bob Keiller heads a community-led group set up to help revive Aberdeen's Union Street

There's a website where all the available properties are collated; crucially, all of the financial incentives are also listed. These can include council fit-out grants (where a new business gets money to decorate premises), and a two-year discount from business rates.

In 2023, 57 of the 198 units on Union Street were empty. As of today, 33 have been filled, with a further 14 in the process of being let.

But it can feel like a game of whack-a-mole because since the initiative started, another 20 units have become vacant. "The key thing is, we're filling quicker than emptying," Keiller insists.

Keiller's operations director, David McKeith, describes it as putting an arm round the shoulder of those they can help and being a "wasp in the ear" of people who just say no.

At one end of the office, a small, young team produces social media content, linking visitors and residents to a new Our Aberdeen app, showing what the city can offer.

For Keiller, the "small wins" – like tackling graffiti – are needed to help change public perception.

"We've realised the psychology is not to do it once but be prepared to do it two or three times before people that do these things eventually say, 'there's no point in putting it there because somebody's going to paint over it.'"

The upper floor problem

Attention is also turning to the often-forgotten upper floors of buildings along the once-iconic Union Street. In a separate initiative, experts are getting inside those vacant high-up spaces to identify the barriers to bringing them back into use.

Aberdeen sought the help of a High Street troubleshooter, Iain Nicholson, who's worked with dozens of towns and cities through his Vacant Shops Academy.

Out of more than 1,000 empty units he helped audit nationally, on average more than half didn't have a letting agent actively marketing the property. He says some councils don't even know who the landlords are.

Empty shops, he says, won't all be filled by the market alone. Towns and cities need to encourage a broader range of occupiers, from arts and culture to leisure, health and well-being.

He says what's striking about Aberdeen is its joined-up approach, and the fact people "rolled up their sleeves" and overcame differences. "That's not something you can yet say about everywhere."

New markets and widened pavements

Can other places learn from Aberdeen?

Every town and city faces its own mix of challenges.

Nicholson also helped Crewe in Cheshire. As a smaller place than Aberdeen, it is focusing on arts, culture, and community, with a new women's centre opened this month.

And English councils are being encouraged to take a more interventionist role.

They can now force an empty commercial unit that's been vacant for at least a year to be offered to tenants through a High Street Rental Auction, even if the landlord doesn't want to let it.

Left: a Noodle bar in Aberdeen. Right: an image of Aberdeen centre
Image caption,

A noodle bar (left) is one of the new businesses in the area. Parts of the city centre have been undergoing construction work (right)

It's early days but the mere prospect of losing control of a property is delivering some results. Bassetlaw Council in Nottinghamshire, an early adopter of the scheme, says more than 30 shops across the district have been let or are currently under offer as a result of the policy.

But filling empty units is only part of the challenge. The bigger question is what town and city centres are actually for.

Changing habits mean we won't need so many shops. Instead, it's argued, town centres will need more people living and working in them, with new homes and office space alongside services that can't be done online. With an ageing population, for example, bringing NHS health centres into the heart of a town could be a big opportunity.

In Aberdeen, the building that used to house BHS – a department store shuttered in 2016 – is being converted into an entrance plaza for the new food and drink market.

The physical appearance of Union Street is changing too. Like many Victorian shopping thoroughfares, it was built with a wide road (probably to give space to horses and carriages). Now parts of the pavements are being widened to make it a more pleasant place to spend time, though many Aberdonians are weary of the disruption, and of new traffic restrictions.

Money is a big barrier. Aberdeen's new indoor food and drink market is costing £40m, funded by the council and the UK Levelling Up Fund. In other places, regeneration schemes can struggle because the cost of redevelopment outweighs the likely financial return, making support from the public sector essential. And the economics are becoming more challenging.

"Higher interest rates, rising costs of construction and other issues are impacting the viability and delivery of new housing and big redevelopment projects," says Steve Norris, a director at Lambert Smith Hampton. He says that big projects usually require cash from both the public and private sectors.

He wants to see "more creative ways of funding".

Part of Burnham's plan is to give local leaders more freedom to invest in town centres and drive regeneration, building on the approach he has championed in Greater Manchester. But bigger projects take years.

Volunteers in purple clothing
Image caption,

Volunteers have played a role in the redevelopment of Aberdeen's Union Street

Making it easier and cheaper to open and run a High Street business is one of the more immediate solutions being called for, with business rates a particular concern.

Burnham has promised further rates reform. All eyes are on this month's Budget to see how far he will go.

The chief executive of Next, Simon Wolfson, argues that the bigger challenge is not business rates, but planning reform.

"The most important thing that the government can do for high streets is let them develop," says Wolfson, who's also a Conservative peer.

Rome 'not built in a day'

Back in Aberdeen, there are some signs of traction.

Lauren Reid and her mother Rose moved their fashion boutique to Union Street in 2024. A council grant helped with the refurbishment after they decided to make the leap.

Can they make the sums add up? "We're getting there," she says.

She feels the same about the future of her street. "I always say Rome wasn't built in a day."

Lauren Reid and her mother Rose  pose in front of their boutique shop.
Image caption,

Lauren Reid and her mother Rose moved their fashion boutique to Union Street with the help of a council grant

Right now the area feels like a construction site – but another gaping hole will soon be filled. Robert Keane is a local property developer who in 2023 bought the Trinity shopping centre, once home to Debenhams. The space is now set to be re-occupied by a national leisure brand. A notoriously tiring stairway leading to the Trinity from the train station is also being replaced by an escalator.

"We saw a real good opportunity, because it was dying," he says.

He reckons he can make a go of it, cutting the cost of parking and overheads, resetting rents and being more nimble than previous far-flung owners.

It was a bold move given Lambert Smith Hampton suggests that more than one in 10 UK shopping centres is ripe for demolition.

But he's betting the dynamics of Aberdeen are finally changing.

"I think by 2027 it should look and feel like a different city."

That is certainly the hope. Yet walking along Union Street today, past the boarded-up shopfronts and roadworks, it can still feel like a city caught between its past and whatever comes next.

Top image credit: Getty Images

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