Turning our cities into vibrant hubs for the future means stakeholders must work together now

In recent months, the future of our city centres has attracted widespread commentary and opinion, linked to several high-profile anti-social incidents and a perceived demise in attractiveness for shoppers, tourists and workers.

As retailers navigate an uncertain economic market fuelled by the growth of online sales, inflationary pressure and the closures of mega retailers Argos and Iceland, some have queried if the sector represents a roadblock or a catalyst for the reinvigoration of our city centres.

Certainly, there has been an over-reliance on the retail sector in the recent past. But the idea that retailers have abandoned the city centre out of fear or fear of failure are overblown.

A balanced approach

In a post-Covid environment, retailers’ appetite to re-engage has been questioned, and they are assumed to favour high-density shopping centres and retail parks at the expense of the high street. Recent footfall data and market activity rebut this argument. The historic focus of many city centre stores was solely on selling products to tourists, students, commuters or day-trippers. This is now changing to reflect the expectations of the modern consumer and will need to continue to evolve to ensure a more community-focused future. International evidence demonstrates that balance and diversity is key to successful city centre regeneration. A strategy that links retail with residential housing, flexible office space, hospitality and entertainment options, along with a focus on leisure, wellness and historical heritage is a positive first step.

The modern consumer

The development and cultivation of strong consumer relationships is imperative, given the range of choice on offer in the market. Retailers still need to excel at selling products, but product sales will become only one element that includes services, experiences, advice and content to keep consumers coming back. Internationally, shoppers are moving away from the middle of the market; in greater numbers they’re either seeking value-based or premium propositions. Retailers are addressing this pattern, with second-hand luxury items now on sale in many department stores, offering a gateway to the premium market to a wider consumer base.

Less is more

The physical city centre store has an instrumental role to play. It provides retailers with the opportunity to showcase their brand, engage with a broader, more diverse demographic, trial new concepts and transition their business to an integrated, omni-channel model. In this model, less is more. Retailers will reduce store numbers but will seek larger-footprint or more high-profile spaces within the city centre. While differentiated in nature, these stores will act in tandem with their suburban/retail park outlets to facilitate accessible delivery/pick-up/return options and support a more user-friendly customer experience, maintaining footfall and engagement across their wider store network.

Irish brands benefit

Ireland’s city centres remain an attractive location for international retailers. The arrival of Flannels, Lego, Lululemon, Canada Goose, Pret A Manger, Tessuti and Mont Blanc stores post-Covid illustrates a more diversified experience in a market once dominated by mid-tier UK fashion retailers. This realignment has also facilitated Irish brands such as Elvery’s, Carraig Donn, Sculpted by Aimee and Dubray Books to open in prominent city centre locations. This potential has also been highlighted by the inclusion of Cork, Dublin and Belfast among the top-ranking ‘Cities of the future’ from a business attractiveness perspective in a recent report commissioned by the Financial Times/fdi Research.

Task force

In recent months, column inches have been filled by decrying the problems of Ireland’s city centres. Proactive collaboration is now required across national and local government departments, the business community and public interest groups to counter this. The creation of a focused, city centre revitalisation task force would be a timely intervention by the Government, drawing on international best practice from a transport infrastructure, business incentive (rates and capital allowances) and community engagement perspective.

The retail community has not abandoned our city centres. Retailers recognise that openness to change and innovation is imperative. Retail can once again be a driving force for positive change in our city centres. The time for action is now.

Owen Clifford is head of Bank of Ireland’s retail sector