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With a result that will be of little surprise to anyone familiar with the cost of property in Guernsey, a straw poll of town shops has confirmed that rent makes up the lion’s share of shops' spendings.
With costs going up across the board, whether you’re looking to purchase or make rent at the end of the month, it’s no surprise that people are finding it harder to stretch their cash between pay days, and it’s no different in retail.
The issue has come back in to the spotlight, after it was confirmed that the space occupied by Jojo Maman Bebe is currently up for grabs for the price of £50,000 per calendar year.
That figure appeared to shock many on social media when Express reported that the retailer is pulling out of Guernsey.
By contrast, few were surprised when Express directly asked retailers about the costs associated with the industry.
Pictured: Jojo Maman Bebe will close this weekend. The property it occupies is available for rent for £50,000 per annum.
Take Bailiwick Botanicals for example.
A local business which has done well since opening for the first time in 2021, it’s gone on to open a second shop on the Bridge and will be moving premises to a new home in Weighbridge house.
Erin Franklin, is the Retail Manager for Bailiwick Botanicals across Guernsey and Jersey and she says rent, and the age of the buildings on offer, can take up a major share of a company's outgoings.
“We’ve had floods, we’ve had asbestos removed, we’ve had water damage. So the cost for just having the space is immense, but then on top of that the buildings are so old that they need so much work and so much love that it ends up being much more than the projected cost.
“We’re kind of in a position where we just have to take what’s available. Guernsey is old, these buildings are old. I don’t think anyone wants to come in and just knock them down and start over, but there has to be some accountability, because now things are turning to be unsafe for people."
Pictured: Bailiwick Botanicals is moving from the Arcade to bigger premises in the Pollet.
Across town, Seahorse sits quite happily on the edge of the Pollet. The small boutique clothes shop has been around for years, often drawing in locals searching for a special something for a loved one, or tourists who’ve strolled along the St Peter Port seafront.
Theo Hamilton is the Managing Director, and despite a huge smile on his face, the reality of running retail is something he takes very seriously.
“I wouldn’t say it’s the easiest thing in the world. We’ve got a very good local clientele. All in all it takes a while to get on your feet, it does take a couple years to get established.”
He’s well aware of the problems others have had in town, but considers himself fortunate.
“We’re very lucky with where we are in the Pollet, we’ve never had a problem with the flood. I think our location helps out a lot with that. The properties are really well maintained, the only problem we’ve had has been with the wind. So the awnings outside do take a bit of a battering."
The biggest pause for concern to Mr Hamilton is the risk online shopping still poses.
It’s been a talking point for years, but the way online shopping threatens local stores is still very much at the forefront of local retailers.
“Online shopping is growing very, very big, and the costs for rent and local businesses is growing every year. For me, the rent we have here is absolutely fine, but the only thing that concerns me is if more people decide to leave the island, go shopping, or go shop online, then those rents could become bigger than what they seem to be. A bit more daunting.
“In St Peter Port you pay for what your location is, but that’s always been the case. It is nice to see some streets like Mill Street thriving again.”
It’s not just those renting their commercial spaces that are feeling the pinch either.
Paul Dodd owns Soundtrack in Church Square. A little bit of a local institution, the tech shop has been there for years, a permanent fixture sat within walking distance of parking and the bus terminus, but they too are feeling the pressure of increasing costs.
“Well the costs keep spiralling up, be it the rates, the insurance, electric, water, it all seems to keep going up and up.”
However, Mr Dodd claims the biggest issues facing local retailers are the hurdles set up by our very own States of Guernsey.
“When they stop locals from parking, it does impact the businesses. There’s things that need to be addressed to keep Town vibrant.
“There’s so many problems getting into town, with all the roadworks, and closing parking, it does put people off. It’s quite important people wanna get in nice and quickly, do whatever they want, and if they can’t, they don’t come in."
OPINION: "It is clear that the Retail and Real Estate sectors are struggling"
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