The incubator city: how Bristol facilitates the growth of independent business

The British Retail Consortium’s recent proposals for business rates amendments attracted a backlash from independent retailers, who alleged they favoured established chains. It is easy to understand their frustration. After all, it is the independent retailers that are the true pillars of local retail markets – and it is often the locations that facilitate their growth that continue to flourish over and above those reliant on chains. Bristol is one such example.

The city has a long history of supporting independent businesses, with excitement around a new opening typically surpassing the response when a chain arrives in the city. It is also very entrepreneurial, which makes it the perfect breeding ground for new concepts – or the ideal ‘incubator city.’ Boasting the longest independent shopping street in Britain, with Gloucester Road topping national charts, the city is also home to other independently-minded areas like North Street in Southville, Old City and Cotham Hill, so the appeal to independents is obvious. But how does this work in practice, and how might the model be replicated elsewhere?

Flex leads the way

By staying receptive to monthly rental agreements, flexible leases and all-inclusive rents for fitted units – rather than forcing businesses to sign up to longer-term commitments – the city offers plenty of options for independent businesses interested in entering the market.

These small businesses appreciate the adaptability of shorter-term arrangements and some enjoy a more nomadic existence, moving around and taking flexible leases where they can. The risk of paying to fit-out and market a new unit for the long-term while taking on the repairing liability just doesn’t appeal if you can operate without those constraints in a simpler, but less certain form.

For example, many operators have figured out they can make more money by using a “dark kitchen” model servicing the likes of delivery services such as Deliveroo and Uber Eats. This keeps overheads low and operations simple, raising the question of whether there is any need to open a full-service restaurant or develop brands into more established, high street names.

This is no bad thing. Landlords increasingly prefer independents to chains in Bristol, as they can be better for other parts of buildings (residential or office uppers, for instance) due to the cachet associated with quality local operators, which are also less likely to be affected by the mass closures associated with bigger chains.

Wapping Wharf: a case study

Take Wapping Wharf (pictured). Opened in 2016 as part of Bristol’s regeneration scheme, the space is home to more than 40 small independent businesses, most of which are on flexible leases within the shipping container portion of the scheme. These operators were able to take on ready to fit-out spaces with infrastructure in place. This kept opening costs to a minimum and has resulted in a flourishing community of independent bars, restaurants and shops.

Interestingly, Wapping Wharf is expected to close in its current form, to be replaced by a 10-storey building that will itself have opportunities for many of the displaced operators to take on more substantial premises. The timing is unclear, but this would represent a natural next step for some flexible operators to move into a more permanent home. This is a positive move and will likely present the perfect middle ground between testing a business in a temporary environment and a full lease in a more traditional location.

So where next?

Areas such as Gloucester Road, North Street and Old City act as the logical way forward for start-ups looking for a more permanent home and some Wapping Wharf tenants are moving to these areas, or even trading from multiple locations, to maintain their independent appeal. Of course, this still depends on landlords being willing to offer a degree of flexibility and provide units that have perhaps already been put to a similar use so that some key infrastructure is still in place.

Looking ahead

The extent to which Wapping Wharf can be replicated in other cities relies on a number of factors. Plans, however reasonable, must always take into consideration the location and size of the scheme. Wapping Wharf sits in perfect position by the water and within a space easily accessed by residential areas and the city centre, allowing for a high volume of footfall. Ultimately, cities must find the sweetest intersection between use, local appeal and cultural value. As Bristol demonstrates, those that do find it will be far fitter for the brave new independent-oriented retail world than those that don’t.