Retail Week’s roadtrip continues with a jaunt around the Northeast and Yorkshire, including a look at Hull’s retail regeneration and a visit to family-owned Pavers.

Hull

Between business rates, the national living wage and the apprenticeship levy, it would be easy to think that retail and the Government have an adversarial relationship, more commonly finding themselves at loggerheads than collaborating.

However, one Yorkshire city is proving that both can come together to create a thriving, and profitable, retail scene.

Hull is just over halfway through its tenure as the UK City of Culture 2017, and the public and private sectors have united to make its reign a success.

While £27m of public sector money was invested in transforming the city centre, local businesses have ploughed a further £5m into the fund to date.

Jim Harris is the manager of the city’s largest shopping centre St Stephen’s, one of the 12 businesses that gave financial backing to facilitate Hull’s 365-day festival of cultural events.

Humber Street Hull credit Leo Francis

Humber Street Hull credit Leo Francis

Humber Street, Hull

“It has been a hugely galvanising force,” says Harris. “There’s been a resounding message from businesses in the city centre on the level of energy they feel from shoppers and the number of new customers they see.”

Harris says that usage of St Stephen’s car park is up 40% year-on-year and footfall after 6pm is up 8%, driving a 4% increase in food and leisure spend in the shopping centre.

And its not just St Stephen’s that is benefitting. During the city’s Made in Hull cultural festival, 37% of businesses in the city centre reported a rise in turnover and 27% saw profits rise, according to Hull City Council.

Harris is adamant that this is just the beginning for Hull’s retail renaissance. “This is about legacy – it’s going to take time but I think it is a game-changer for the city, particularly for retail here,” he says.

Hull record stores soundsystem records credit Chris Pepper

Hull record stores soundsystem records. Credit: Chris Pepper

Soundsystem records, Hull

The city has undertaken a variety of projects to boost footfall, including the refurbishment of traditional indoor food court Trinity Market and Hull Minster, which has held events including a traditional ale festival and live music performances.

St Stephen’s, which boasts an annual footfall of 12 million, has also held several events in the shopping centre, including a parade with a samba band and costumes that were created by local residents.

“One of the crucial roles for us to play is to be a genuine heart of the community and the City of Culture bid has given us a chance to really cement that,” says Harris.

Putting Hull on the map

The concerted effort from the local council and businesses to put Hull on the map comes after a period when the city, by Harris’ own admission, was down at the heel.

“It’s very tough for bricks-and-mortar retailers if you operate in a city that doesn’t have an in-built tourist infrastructure or double as a transport hub,” says Harris.

“Hull has always been around for that convenience shopping trip but whereas before people would have driven to Leeds or Newcastle for a day out shopping, they’re now thinking of us.”

The united front that the city’s businesses and councillors have shown demonstrates how being named City of Culture has acted as a springboard to turn around Hull’s previously flagging fortunes.

It also provides a blueprint for the many secondary cities across the UK facing declining retail footfall.

“For existing customers, and even more importantly new shoppers, one of the crucial things about City Of Culture is that we under promise and over deliver,” says Harris.

“For a city like Hull, we only get one chance at this.”

Northern sole

Pavers HQ

Pavers HQ

Pavers headquarters in North Yorkshire

A quick train journey takes us to North Yorkshire, where Pavers has quietly been building up a footwear empire.

The company was set up in York in 1971 by Cathy Paver, an ambitious mum who took out a £200 bank loan (she told the bank she was buying a sofa) to fund her footwear business. The business started off selling direct at village halls and house parties before branching into stores.

Cathy passed away earlier this year at the age of 88, but the business remains family run in the truest sense. Cathy’s son Stuart has been at the helm for the last 25 years, whilst his son James acts as director of sales. Sister-in-law Debbie even presents the retailer’s home shopping channel, which airs on Sky.

However, managing director Stuart Paver says that family members have to earn their stripes elsewhere before joining the business.

“When people do come back it’s got to be for a position that they’re suited to and is available,” he says, adding that his son James, who did stints at investment banks including Goldman Sachs, “took a big pay cut” when he took his role at Pavers.

Stuart Pavers

Stuart Pavers

Stuart Pavers

Pavers caters to the female shopper aged 45 and over, but the vast majority of its customers are in the 65+ age bracket – a sector of the market that Paver says is very underserved.

“We have a very loyal customer base and we’ll never get the peaks that other people report but we also don’t get the troughs so it’s much easier to plan for and trundle along with,” he says.

“I’d much rather have this loyal customer base than a flighty one that you don’t know will come back to the shop next week.”

The retailer has 130 stores across the UK and Ireland but is gearing up for a rapid bricks-and-mortar expansion with a particular focus on the Southeast, and snapped up eight of Brantano’s former outlets after it collapsed earlier this year.

Pavers also lost out on a deal to acquire 45 Jones Bootmaker stores at the eleventh hour after rescue firm Endless bought it out of administration.

However, the retailer is pressing on with its ambitious expansion plans. It wants to grow to up to 240 stores and has 65 new locations in its pipeline.

“During difficult times its often much easier for somebody like us that’s got a very good balance sheet and is strong financially to acquire units and do deals that work for us in the long term,” says Paver.

Pavers isn’t just expanding with more stores – it is also ploughing £4m into doubling the space of its warehouse and head office.

Although Paver concedes that recruiting buying and merchandising positions in the sleepy town of Upper Poppleton can be a challenge, leaving the retailer’s Yorkshire heartland is out of the question.

“We’re the only big retailer left in North Yorkshire. It’s far sexier to be based down South and you get far more press coverage but then it’s more difficult to retain people and it costs more,” he explains.

“We’ve developed a very strong team and will continue to be based here for as long as I can see.”

Setting up camp in Sunderland

Berghaus HQ

Berghaus HQ

The product sky rail at Berghaus headquarters

Next stop: Sunderland, where we visited the rather snazzy headquarters of Pentland Brands-owned Berghaus.

Brand president Richard Leedham – who has worked for Berghaus for more than 20 years – admits that like Pavers, Berghaus has recruitment difficulties.

“It’s not the easiest place to attract talent to so we’ve invested in a great working space and flexible working, allowing people to live all over the country but spend a lot of time in Sunderland,” he says.

Pentland, which also holds the majority stake in JD Sports, has ploughed investment into Berghaus headquarters, including creating a fully operational product development lab. 

The revamped space also boasts a variety of outdoors-inspired design details including a chalet-style dining area, climbing rope-lined stairwells and climbing holes instead of door handles.

The two-year long refurbishment was completed at the end of 2015 and won a top title at British Council for Offices Awards last year.

“It’s the most active office environment we could offer, short of being based in the mountains somewhere,” says Leedham.

Berghaus HQ

Berghaus HQ

Reception area in Berghaus headquarters

It’s an investment that has paid dividends for the business, which has recruited senior executives from North Face, Unilever and Procter & Gamble in recent years.

Location aside, the outdoors brand is looking at demystifying the sector, which Leedham concedes can be an intimidating one for shoppers.

“We provide for everyone from a dog walker to people participating in extreme sports and I don’t think we’re doing the best job as an industry of selling that,” says Leedham.

Berghaus has recently closed the vast majority of its standalone stores.

Leedham explains that the sector has gone through “massive consolidation” in recent years and that Berghaus’ retail portfolio had not driven sufficient sales to justify the running costs.

Berghaus is prioritising its online and wholesale channels, including Cotswold Outdoor, Blacks and Millets. 

However, Leedham says there is a lot both Berghaus and the sector at large can do to attract new customers.

He says that the outdoors sector has missed a trick by catering primarily to avid outdoorsmen.

“Traditional outdoor brands have been far too male focused and we’re missing out on the opportunity to engage a wider consumer, and especially women within that,” says Leedham.

From the samba bands of Hull to the chalet halls of Sunderland, these retail businesses are giving talent and shoppers alike new and compelling reasons to come up North.