Cities that are less reliant on the retail sector are much more successful, our High Streets Development Conference has heard.

Speaking to over 300 delegates expert Andrew Carter, the Chief Executive at Centre For Cities, described the structural issues in the economy affecting high streets: “We’ve seen no real wage growth over the last 10 years and that’s really related to an awful performance of GDP and productivity. The jobs miracle that is much talked about in terms of low unemployment doesn’t apply to retail.” [emaillocker id=”71749″]

The geographical inequalities within this are particularly stark, while in cities such as Doncaster, Newport and Mansfield wages are 10% lower in real terms than 10 years ago. This shows that many of the country’s periphery towns have not recovered from the economic crash resulting in a recession in 2008. The lower wages in those areas have been particularly damaging to retail, as lower disposable income reduces consumer spending.

Carter warned: “Geography of jobs has changed and is changing quite rapidly. Twenty-four cities – our bigger urban areas – have less jobs today in the city centre than they did 10-15 years ago. This has translated in areas like Barnsley and Sunderland having 30% less jobs in the centre than there were 10-15 years ago. Yet in cities like Manchester, Milton Keynes and Bristol it has increased by 40%, demonstrating the extent of geographic division.”

The difference is even starker for higher productivity professions where wages are also much higher, meaning this inequality has not affected all areas equally, Carter explained: “Not every high street, not every town centre and not every city centre is struggling. If you look at places like Cambridge or Exeter less than 7% of their city centre stock is vacant, whereas if you go to Newport, Bradford or to Wigan, that number gets over 20%.”

Retail is feeling the pressure of online shopping, which is now where one in every five pounds is spent. This speaks to the need for cities to provide retail places that can still be attractive destinations for people, but also to reduce the reliance on the industry for the local economy. [/emaillocker]