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Retail development: evaluating the social and economic benefits

National Retail Planning Forum

7 November 2012

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Socio-Economic Impact

“Sustainable development is about positive growth – making economic, environmental and social progress for this and future generations”

Rt Hon Greg Clark MP

Minister for Planning

Ministerial Forward, NPPF

March 2012

The concept of a Carbon or Ecological Footprint is now well understood. What is less well understood, although immediately ‘recognisable’, are comparable impacts on social and economic issues.

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.... the impact you have by being there and how you choose to run your business

Community Footprint

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Policy-basis: Joining Up Planning, Economic Development & Neighbourhood Renewal “Encourage investment to regenerate deprived areas, creating employment and an improved physical environment”

Context

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Background – “Each Stage had it’s own Strategy”

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Increase Consumer Demand

Increase Disposable

Income

Increase Local Jobs

Increase local

business sales

Increase Local

Spending

Increase Security

Increase Consumer

Traffic

Attract Additional Investment

Provide Competitive

Offering

Background

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Background

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Investment Framework

What’s its Purpose?

• Assess the positive and negative impacts of a past or proposed investment against the framework to determine its strengths and weaknesses in providing socio-economic benefits;

• Manage the ongoing socio-economic impacts of an investment

• Organise existing information from CSR, planning, and community investment

• Communicate wide range of impact in overview format

• Not a prescriptive reporting index; qualitative and quantitative

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People

Economy Place

INVESTMENT

BENEFIT

Community Footprint Retail Investment Framework

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Investment Benefits

Investment in People - Investment in The Individual (social mobility) - Investment in Key Stakeholder Groups

(social capital & inclusion) - Investment in The Wider Community (community well being)

Investment in Economy - Contribution to Local Economy - Investment in Employment - Investment in Enterprise

Investment in Place - Investment in The Site (place making)

- Investment in The Area (vitality) - Investment in Civic Pride (quality of life & identity)

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Investment Framework Case Study

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Investment Framework

Investment in the Individual Opportunity (skills & training, employability) Personal growth (education) Social well-being (health, culture)

Investment in Stakeholders Engagement & consultation (development and ongoing) Social Inclusion (groups w/o traditional access) Strategic Partnerships (LA, local business, training)

Investment in Community Cash, In Kind, Volunteering Issue areas

People - The Individual (social mobility) - Key Stakeholder Groups

(social capital & inclusion)

- The Wider Community (community well being)

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Investment Framework

Investment in Local Economy Income/Expenditure Market share/Leakage Linked shopping/Footfall Local money circulation Indirect impacts Return to UK plc

Investment in Jobs Number (net) Impact on local market

Investment in Enterprise Local business (opportunities, displacement) Business development (supply chain, tenancy) Adjacent High Street (small shops, independents)

Economy - Local Economy

- Employment

- Enterprise

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Investment Framework

Investment in the Site Physical regeneration Infrastructure, community facilities Alignment with local strategies Design (character, public realm, access

and connectivity)

Investment in the Area Mix of uses Diversity of choice Vacancies/churn Impact on town

Investment in Civic Pride Opportunity to dwell Sense of place Civic pride & Image

Place - The Site (place making) - The Area (vitality) - Civic Pride (quality of life & identity)

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Investment Framework

How is it used?

• Assess the positive and negative benefits of a past development that has already been built;

• Assess the positive and negative benefits of a proposed development, based on area context and past investor experience.

• Assess a proposed development proposal against the framework to determine its strengths and weaknesses in providing socio-economic benefits;

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Investment Framework

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Investment Framework

• Lessons from Case Studies

• Users – Communications (retailers); Planning team (supermarket); Executive team (mid-size developer); Asset Development & Management teams (large developer), Community/CSR team (large developer)

• Existing business imperative to use (upcoming planning application, communication of benefits brief; existing asset analysis, potential extension, framework for asset management)

• Benefits of engaging local authority

• Transparency: “Good and Bad”

• Balance of information detail, resources (both time and £) and use of proxies

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Socio-economic Impact

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What’s Next

What would most help the industry have more informed discussions about socio-economic impact?

• Series of workshops in 2013 to set a research agenda of what’s most useful?

• Collaboration with practitioners and academics

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Next Steps - Guidance

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Investment Framework Case Study

Transforming business

transforming communities