Town's retailers remain confident

By Jo Perry
BBC Scotland news website, Tayside and Central reporter

Sales among retailers in Falkirk are down by 2% on the same period last year

A recent poll of 100 business owners in Falkirk found that 85% expected the town's economic outlook to improve.

But that optimism is in sharp contrast to the fiscal realities being experienced by many firms at the moment.

Only last week a major £500m development to create a new commercial hub on the outskirts of the town was shelved.

Among the reasons given was the developer's inability to attract a big name retailer, who would in turn attract others to the project.

The Falkirk Gateway development was heralded by the town's council as among the most visible symbols of Falkirk's regeneration.

In the last century the town has changed from a centre of heavy industry and manufacturing into a town of service-based employers.

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Falkirk's town centre is typical of many across the UK, with dozens of high street names prominently placed along its 26 shopping streets.

The town also boasts two shopping centres, a sizeable retail park and four large supermarkets all within a half-mile radius.

For a town with a population of 150,000, Falkirk seems well catered for when it comes to shopping.

However, with the unemployment rate in the town showing an upward trend - jumping from 2,113 to 2,576 from February to October - retailers are finding that customers have less to spend.

Turnover is down by about 2% at the Howgate Mall in the town centre, and footfall has also dropped by about the same amount in the last 12 months.

'New businesses'

Town centre manager Alastair Mitchell is quick to point out that there are few signs the economic slowdown is having an impact in the town.

He said the rate of new business coming into the centre had yet to be affected.

"In the last few months we have welcomed a number of new businesses, including City Nightclub and Sportsters Bar, which is one of the largest nightclubs in Scotland.

"Brothers Menswear, an independent business which has been in Falkirk for three generations, moved from an off High Street location to the High Street, and is doing very well", he said.

"From what I have been told, as far as fashion is concerned, the businesses who aim their products at the young - people without large mortgages and pensions - are doing well.

"But those aiming at the over-35s are more likely to be the ones struggling."

About 85% of business owners in Falkirk expect the economy to improve

Among the big-name retailers to move out of Falkirk's High Street are discount bookstore The Works and JJB Sports.

Steve Mackie, who owns the Gilded Cage in the town centre, cautioned against assuming the worst.

The speciality gift store has been a permanent presence in Falkirk for more than 40 years and has survived previous downturns.

Mr Mackie said that following the publication of figures which showed UK retail sales dropping by 0.1%, there was plenty of evidence to suggest not all retailers were being battered by recession.

He said: "Any retailer that cannot sustain a drop of 0.1% is in serious trouble. For me, I have always cut my costs as much as possible as part of good housekeeping.

"Earlier on this year I was considering taking on additional staff but I decided against it. We don't over-extend ourselves.

"Judging from what we're hearing, 2009 is going to be a thoroughly unpleasant year, but at the moment business is good and that is also the case for the other independent retailers I know.

"If we consider that retail sales in the UK are only down by 0.1%, yet some of the big name retailers on the High Street are seeing their sales plummet by up to 14%, it must be true that there are many out there whose sales are good."

BBC Scotland is focussing on the impact of the credit crunch on Falkirk, with special reports on television, radio and online on Tuesday.