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Family businesses: the saviour of Britain’s high streets

In recent years news on Britain’s high streets has made for grim reading. What with the demise of retail giant BHS and the closure of 120 Austin Reed stores in summer 2016, together with falling footfall figures of up to 10% in some towns, the future of British high streets could be viewed as somewhat bleak.

But it appears that salvation could be coming just when it’s needed, and from a very unexpected source. Enter the humble family business.

There are 4.6 million family businesses in the UK, accounting for 87% of all private sector firms. What’s more, a report published this year by the Institute for Family Business shows that nearly half of SME family firms aim to grow their businesses over the next two to three years, and that retail is one of the sectors in which family firms enjoy a higher percentage share of turnover than non-family firms (35% vs 30% respectively).

These figures are being reflected in the changing face of our high streets, with family businesses now snapping up empty units that were once occupied by major retail players.

Sussex Beds is one such example. Two years ago the 30 year old family company was near collapse. In administration and preparing for imminent closure, it took risk-taking and resilience from its second generation MD, Steve Pickering, to save the brand. As a result, the company, which has seven stores county-wide, experienced a turnaround in its fortunes, won a national retailer award, and is planning to open a further 11 stores within five years.

Another family run company, Pets Corner, has gone from relative obscurity to household name status within half a decade. The first Pets Corner store was opened in 1968 in Haywards Heath by husband and wife team Mark and Sandra Richmond. Now, almost 50 years on, the company boasts over 160 stores throughout the country after undertaking an ambitious expansion programme spearheaded by son, Dean.

There is much debate as to why family businesses are experiencing this current boost in trade and positivity, but personal motivation and service levels have been cited as two likely causes.

“Owners of family businesses tend to feel more personally responsible for the success of their company and pull out all the stops to make it work”, offers Alex Kent, professional business consultant at mysherpa.co.uk. “At a time when the high street is competing with growing online sales, the service and expertise provided to customers from family-run firms can give them the competitive edge over large retail organisations.”

Alex continued: “I think the best local firms compete against the bigger players by having both a local presence in the physical stores as well as an online presence. Sussex Beds have both and I feel this is definitely a contributing factor to their success.”

This was posted in Bdaily's Members' News section by Lucy Clapham .