Future Fit Retail Roadmap

DEC 2024

Future-Fit Retail Roadmap

Re-imagining purpose, embracing opportunity R.190/2024

Our Mission

To nurture a strong retail economy, fit for the future: fostering prosperity through vibrancy, productivity and a customer-led approach.

Contents

4 Introduction

7 Background and Context

20 The Vision

24 Strategic Goals

27 1.  Vibrant

42 2.  Customer first

54 3.  Productive

63 Conclusion and Recommendations

65 Appendix

Introduction

Executive Summary

The retail sector is a cornerstone of Jersey s economy. It is essential for daily life and prosperity and both businesses and Government must work together to ensure it is future proofed.

Consumers interaction with retailers has evolved significantly over the past decade, necessitating a new plan to build on the last Interim Retail Strategy, published in 2021.

More than 900 retail businesses cater for diverse customer needs through a range of avenues, from online marketplaces to boutique stores, and this roadmap aims to support those businesses for a brighter future. Protecting the supply of essential goods must be a core focus across

the sector, while highlighting the need for high-street businesses to adapt to ever-changing environments and spending habits.

Retail is a major economic driver in Jersey. The third largest private-sector employer, with over 7,000 jobs, it contributes £375 million in Gross Value Added, generates significant GST revenue and supports the commercial property market.

A thriving retail sector is also crucial for Jersey s visitor economy, enhancing the island s appeal to tourists while unlocking new markets. The plan envisions a prosperous retail environment that supports the community and enhances the visitor experience, centred around a vibrant St Helier. It is a vision that sets us on a path to have a consistently high-performing, environmentally- sustainable and technologically advanced small island economy by 2040, as set out in the Strategy for Sustainable Economic Development.

Jersey s high-street enjoys footfall of circa-7.5million visitors per year and shopping is identified as a top activity for tourists. Opportunities to capitalise are strengthened by the fact that one third of Islanders live in St Helier and two thirds of Jersey s population work in town.

However, the proportion of overall household expenditure attributed to online spending in Jersey has risen by 5% since 2014/15, to an average of £106 per week. It is, therefore, necessary for businesses to diversify their offering and we all have a role to play in fostering innovation.

Traditional retail, which incorporates transactional goods such as food, drink, clothing and footwear, currently accounts for 16% of household spending but trends appear to have changed since the pandemic. There is now increased spending on experiences and travel, compared to before the pandemic, and the reimagined retail sector a core focus of this roadmap should integrate more with hospitality, recreation, health and education. This new approach will create a seamless blend of services and capture a larger share of household spending by offering diverse, interconnected experiences. Businesses have significant opportunities to capitalise on this evolving landscape.

Jersey s future retail environment must also encourage entrepreneurialism and creativity, support startups and incentivise established firms to innovate. This will drive economic growth, attract investment, and create a dynamic marketplace.

A fair economy will be supported by prioritising accessibility, supporting local businesses, and ensuring fair wages. Inclusive hiring practices and pathways for career development must be encouraged reducing inequality and supporting a balanced distribution of wealth. Promoting lifelong learning and digital literacy will help older employees remain productive and engaged, ensuring continued growth and stability in the retail sector.

Internationally, the plan aims to enhance Jersey s global reputation and expand export opportunities by encouraging innovation and quality in local products. This will attract international consumers and strengthen the Island s brand.

The Jersey: Future-Fit Retail Roadmap focuses on three strategic goals: Vibrant

Enhance the vibrancy of our streets by addressing vacancies and working with landlords

and businesses. This includes integrating retail into the Plan for St Helier and public realm improvements. We will drive innovation and entrepreneurship through policy, support customer- experience training, and encourage participation in the nighttime economy. Collaborations with the arts, culture, and heritage sectors will maximize retail opportunities alongside hospitality.

Customer first

Prioritise the needs of Jersey s residents and visitors, focusing on hyper-convenience and seamless engagement. Our goal is to create a community-centric environment, making access to products and services easy and enjoyable. We will enhance public-realm attractiveness and will encourage businesses to elevate customer service standards and stay attuned to consumer trends to remain competitive.

Productive

Support business growth across a variety of channels, embracing automation and circular economy principles to enhance productivity and build a resilient, more self-sufficient supply chain. This approach will reduce reliance on imports and tackle the climate crisis, ensuring a sustainable future for Jersey s retail sector.

Success in transforming Jersey s retail sector focuses on vibrancy, community wellbeing, and customer satisfaction, rather than just increasing shop numbers. Businesses should align their strategies with these goals and contribute to the sector s overall transformation. Annual and ad-hoc updates will track progress, with relevant parties responsible for delivering and reporting on actions. Continuous review of internal strategies will help businesses thrive and support the collective success of Jersey s retail landscape.

Deputy Kirsten Morel

Minister for Sustainable Economic Development

Future-Fit Retail Roadmap Re-imagining purpose, embracing opportunity

Background and Context

Why is retail important to Jersey?

The Retail sector is fundamental to Jersey s economy. Simply, it is impossible to live without

it. More complicated though is our interaction and our relationship with retailers and how we become aware of, choose, and access goods and services. This landscape shifts constantly and is no longer recognisable from the landscape we had ten years ago. The need for a roadmap is clear, as we have not had one since the Interim Retail Strategy published in 2021, or indeed since the seismic shifts we have experienced in the sector post-pandemic. It is time for that vision and time to re-imagine retail for the Jersey of the future.

Retail is the everywhere economy. People interact with it daily and often subconsciously. It can be taken for granted, but it is certainly missed when we cannot access the products and services we require. On an Island with a history of Occupation and thus scarcity, our need is to always have a secure supply of essential goods. This is a challenge that the roadmap aims to address.

Retail also matters because it is a major contributor to economic prosperity in Jersey. It is the third largest private sector employer, with over 7,000 jobs in the sector (11% of total Island employment) and generates over £375 Million in Gross Value Added. Moreover, retail activity sustains a significant proportion of the Island s commercial property market and contributes

to the vibrancy of new areas of development for housing and offices. Broadly, half of the total GST collected across the economy is generated by the retail and wholesale sector[1] (the total GST estimated this year at over £125 Million) and further retail contributions to States and Parish incomes are generated by Corporate Income Tax on large retailer profits, commercial rates and via income tax paid by the employees.

With over 900 retail businesses across the Island, this resilient sector often shape-shifts and adapts to the needs of the customer, whether that be an online marketplace, a smaller boutique or specialist store to a bigger branded chain or department store. From pop-up to permanent, lifeline good to lifestyle good, retailers will be there to serve us.

The retail sector has a vital role to play in our macroeconomic challenges and can help steer our economy into a strong position for the future. There is a clear ambition to ensure it is successful and profitable for the good of our communities, our town and our parishes, as well as our Island economy.

Moreover, a prosperous retail sector is synonymous with a vibrant Visitor Economy, blending experiencing the natural landscapes and attractions with leisure activities and hospitality for those visiting the Island. The future retail sector also has the potential to unlock interest in untapped markets for visitor spend, such as Asia and the Middle East, providing the product, services and tax-free shopping facilities are appealing.

At the core of the retail sector is St Helier s main high street and side streets, which are well supported with infrastructure.

Future-Fit Retail Roadmap Re-imagining purpose, embracing opportunity

St Helier

  Bus Terminal

  Shopper Parking

  Elizabeth Harbour

Freight Terminal

  Central Market

  Jersey s high street

(King Street and Queen Street)

  Other Retail

200m

St Helier retail

7.5 million+  Shopping

No Shopping is the top activity High street visits each year for visitors

Captive  1,000+ audience Shopper parking spaces

in walking distance

1/3 of Islanders are St Helier residents,

and more than 2/3 work in town

Central  Daily freight bus station services

Three minute walk to the high street From UK and additional services

from France

St Helier is a major driver of economic activity for retail due to the volume of the population who live and/or work in the town. However, we also have a plethora of interesting and essential retail outside of the core. The overall contribution of the sector to Jersey s economy is summarised below:

Highest Economic  375 million  contributor to

Contribution in GVA GST receipts

at approx 50%

People  7,000 +  3rd largest

private sector and Skills job roles employer

Business  Over 900  2% of firms with

retail businesses  50 employees Environment in Jersey or more

Re-imagining Retail

Traditional Retail Sector

Selling goods, mostly transactional (e.g. food and drink, clothing)

Traditional retail transactions currently make up 16% of total household average weekly spend[2]. It is worth noting that spending on experiences (recreation and culture in the charts below) and travel continues to increase post-pandemic.

The re-imagined Retail Sector

Will focus on content and include more frequent convergence with hospitality, recreation, care, health, education, co-working and other habitual opportunities for Islanders.

In the new definition of retail s purpose, which we will explore throughout this roadmap, more of the household spend will be in this re-imagined landscape. It is a space over where half of the chart below becomes a potential retail opportunity; a place where lines between hospitality, recreation, health, education and transaction are blurred, interconnected and ubiquitous.

There is a glaring opportunity for businesses to find their gap in the future space and seize it. It might be a boutique cinema in a department store (as Selfridges has done) or a candle making workshop space integrated in a store, as we have already seen in Jersey.

Breakdown of average weekly household spending by expenditure group (£ per week)

Housing, fuel & power Transport Recreation & culture Restaurants & hotels Household goods

£112 £96 £60 £55

£266    Misc, goods & services

Health  

£33 £90

Education

£30 Communication

£14

Traditional Retail Scope

Breakdown of average weekly household spending by expenditure group (£ per week)

Housing, fuel & power Transport    

£112

£266      

Future Retail Scope

Online Spending

Data from the Jersey Household Spending Report 2021/2022 shows that overall online spending amounted to £106 per week, accounting for 12% of all household expenditure. This represents

a substantial increase since the 2014/15 survey, when online spending accounted for 7% of all household expenditure. If we have already seen a near doubling of this percentage in that time, we can anticipate this will have further increased.

The breakdown of online spending is as follows:

Air travel 95% Sea travel 92%

Accomodation services 81%

Package holidays 74%

Clothing and footwear 28%

Recreational and Cultural services 26%

Communication 25%

Other recreational items* 20%

Purchase of vehicles 16%

Household goods and services 11%

Other 4%

*Includes computer software, sporting equipment, toys and open air recreation

Examining the spending categories in more detail, online spending accounts for:  over half of expenditure on books (58%)

 over two-thirds (69%) of spending on computer software and games and almost a third (32%)

of expenditure on computers

 almost half (49%) of the total spending on photographic, cine and optical equipment

 over a third (36%) of spending on games, toys and hobbies

 a quarter (25%) of expenditure on equipment for sport, camping and open-air recreation.

Wider government policy context

Although responsibility for the sector lies primarily with the Minister for Sustainable Economic Development, it also interacts with several other Government departments and relies on Government interconnectedness to deliver the vision set out here.

Infrastructure

Responsible for parking, layout of roads, Jersey Property Holdings buildings and amenities, such as the Central Markets, public toilets and beach cafØs. This department is also responsible for public realm improvements and standards.

Environment/SPPP

Responsible for Planning Policy and Planning decisions.

Treasury and Exchequer

Responsible for tax matters: GST, Retail Tax and tax refunds for visitors.

The Cabinet Office

Ensuring the strategic direction of the new retail roadmap aligns with the Common Strategic Priorities and feeds into the Future Economy Programme (led by the Department for the Economy.)

Department for Children, Young People, Education and Skills

Skills Jersey, which facilitates an apprenticeship scheme but can also help with careers in retail and lifelong learning.

Department of Customer and Local Services

Helping people back into work (skills and training.) Also responsible for licencing and staffing permissions.

External Relations

Serving Jersey s best economic interests by promoting a strong, diversified and internationally connected economy, safeguarding its competitive position as a platform for global business and promoting growth through trade and investment. Promoting Jersey s island identity abroad, together with a greater spirit of international awareness at home.

The Parish of St Helier, other parishes and ALO s such as Jersey Business, Visit Jersey and Digital Jersey also have a huge role to play in the success of Jersey Retail.

Future Economy Programme

The Jersey: Future-Fit Retail Roadmap is part of delivering against the long-term challenges set out in the Strategy for Sustainable Economic Development, and is aligned with the overarching economic vision and five guiding themes of Government. Publishing and delivering the Retail plan is recognised as a key action in section 2.5 of the Delivery Framework and is part of delivering against the long-term challenges identified therein.

Strategy for Sustainable Economic Development - 5 Guiding Themes

1. 2. 3. 4. 5.

RESILIENT INNOVATIVE SKILLED FAIR INTERNATIONAL

1. Resilient economy

An economy resilient to economic shocks and global trends, and agile to change.

Our future retail roadmap can significantly contribute to a resilient economy by fostering adaptability and innovation, which are essential in responding to economic shocks and global trends. By integrating digital technologies, supporting local supply chains, and enhancing customer experience, the plan will encourage businesses to quickly pivot in response to market changes, thereby maintaining stability. Additionally, by focusing on sustainability and local sourcing, it reduces dependency on global supply chains, making the economy more agile and capable of weathering disruptions. This forward-thinking approach not only strengthens individual businesses but also bolsters the overall economy s ability to thrive in an unpredictable global landscape.

2. Innovative economy

An economy with a culture of entrepreneurialism and innovation.

This strategy can be a catalyst for an innovative economy by nurturing a culture of entrepreneurialism and creativity. By encouraging businesses to embrace new technologies, explore alternative business models, and prioritise customer-centric innovation, the roadmap fosters an environment where experimentation and agility are rewarded. It supports startups and small businesses in testing new ideas, while established firms are incentivised to innovate to stay competitive. This continuous push for innovation drives economic growth, attracts investment, and cultivates a vibrant marketplace where new ideas can flourish, ultimately creating a dynamic and forward-looking economy.

3. Skilled economy

A culture of lifelong learning, supporting the future needs of the Island.

A future-fit retail environment can significantly contribute to a skilled economy by emphasising the importance of retail skills as highly transferable and valuable for any future career choice. The plan promotes lifelong learning and professional development, ensuring that the workforce acquires a versatile skill set that is applicable across various industries. Retail experience cultivates essential competencies such as customer service, problem- solving, communication, and adaptability, all of which are critical in today s dynamic job market. By nurturing these transferable skills, the retail sector not only prepares individuals for success within the industry but also equips them with the tools needed to thrive in any future career path, supporting the long-term economic resilience of the Island.

4. Fair economy

An economy with growth that benefits all Islanders equitably.

A stable retail landscape can significantly contribute to a fair economy by fostering growth that benefits all Islanders equitably. By prioritising accessibility, supporting local businesses and ensuring fair wages, the roadmap helps create opportunities for all segments of the population. The Government s recent commitment to a Living Wage transition will have a significant impact on the incomes of employees of this vast sector. It will also encourage inclusive hiring practices and provide pathways for career development, enabling more Islanders to participate in and benefit from economic growth. Moreover, by promoting local entrepreneurship and ensuring that economic gains are distributed more evenly, the strategy helps reduce inequality and supports a more balanced and fair distribution of wealth across the community. This approach ensures that as the economy grows, its benefits are felt by everyone, not just a select few.

5. International economy

Protect our global reputation and diversify our export opportunities.

A secure retail and wholesale industry can contribute to an international economy by enhancing Jersey s global reputation and expanding export opportunities. By encouraging innovation and quality in local products, the roadmap helps position Jersey as a leader in sustainable and high-quality goods. This not only attracts international consumers but also strengthens the Island s brand on the global stage. Additionally, by diversifying the range

of products available for export and leveraging digital platforms for global reach, the plan enables local businesses to tap into new markets. This proactive approach helps protect

and enhance Jersey s international reputation while fostering economic resilience through diversified export channels.

Productivity

Reversing the trend of declining productivity is one of the keys to unlocking economic growth identified in the Strategy for Sustainable Economic Development. We will explore improving productivity as one of the key goals of this roadmap.

Ageing population

This roadmap addresses the challenges of an ageing population and the associated increase in the Dependency ratio (the number of non-workers to workers) by integrating technology and flexible work practices that accommodate older workers. By promoting lifelong learning and digital literacy, the strategy can help older employees remain productive and engaged, allowing them to contribute valuable experience while adapting to new retail technologies. Additionally, by fostering age-friendly retail environments and encouraging part-time or flexible work options, the plan helps retain older workers, thereby mitigating the increase in the Dependency Ratio. This approach not only sustains economic output but also leverages the unique strengths of an ageing workforce, ensuring continued growth and stability in the retail sector.

Jersey s Performance Framework

The retail sector plays a crucial role in aligning with Jersey s performance framework by driving economic growth, supporting community well-being, and fostering regenerative practices.

Retail contributes to the framework s goals of increasing productivity, ensuring inclusive economic participation, and enhancing quality of life for residents. The Sector promotes local entrepreneurship and provides employment opportunities, boosting equitable growth and social inclusion, and through initiatives focused on circular practices and digital transformation it also supports environmental, and innovation targets.

Future-Fit Retail Roadmap Re-imagining purpose, embracing opportunity

The Vision

Our Mission

To nurture a strong retail economy, fit for the future: fostering prosperity through vibrancy, productivity and a customer-led approach.

1. The Vision

In our vision for retail in Jersey, we see a vibrant tapestry of community engagement, enterprising spirit, and regenerative practices. Our roadmap is not merely about transactions; it is about cultivating an ecosystem where ideas flourish, where play sparks innovation, and where every citizen contributes to the prosperity of our future.

2. Place-making and Community

Our retail roadmap revolves around fostering deep connections within our community. We envision a network of local businesses, artisans, and entrepreneurs collaborating to create a thriving economic ecosystem. Through shared resources, knowledge exchange, and mutual support, we will strengthen the bonds that tie us together, ensuring that every member of our community has a stake in our collective success.

3. Regenerative Practices and Sustainable Development

Central to our vision is a commitment to regenerative practices that nurture rather than deplete our natural resources. We will prioritise sustainability in every aspect of our retail landscape, encouraging sourcing products responsibly and reducing waste to investing in renewable energy and green infrastructure as we decarbonise and transition to a net zero economy[3]. By embracing environment friendly practices, we will minimise our environmental footprint while maximising long-term prosperity for generations to come.

4. Cultivating Entrepreneurship and Innovation

Our Island economy will be a productive environment for entrepreneurship and innovation, where bold ideas are encouraged, and creativity is celebrated. We will provide aspiring entrepreneurs with the resources, mentorship, and support they need to turn their visions into reality, whether through incubator programs, funding initiatives, or collaborative spaces. By nurturing a culture of experimentation and considered risk-taking, we will fuel economic growth and drive forward-thinking solutions to meet the challenges of tomorrow.

5. Celebrating Culture, Heritage, and the Arts

At the heart of our retail roadmap lies a deep appreciation for the rich tapestry of culture, heritage, and the arts that define our island identity. We will support spaces where local artists and craftsmen can showcase their talents, where traditional practices are preserved and celebrated, and where cultural exchange flourishes. Through mindful collaboration with cultural institutions, community organisations, and Jersey communities, we will celebrate our heritage while embracing the diversity of our present.

6. Engaging Future Citizens and Their Habits

As we look to the future, we recognise the importance of engaging the next generation of citizens and understanding their evolving habits and preferences. The ambition of

this roadmap is to move from a responsive position, to a predictive one, where we

fully acknowledge the rapidly changing relationship that consumers have with brands, places and with each other. Our retail strategy will leverage digital technologies and social media platforms to reach and connect with younger demographics, while also prioritising experiential offerings that cater to their desire for authenticity and uniqueness. By co-creating and listening attentively to Islanders needs, we will ensure that our

retail sector remains vibrant and relevant in the years to come. Where our citizens are transacting increasingly online, the High Street will evolve to have fewer but better shops that respond to the socialising desires of its audiences. The most notable change in customer expectations we have witnessed in the most recent times is the demand for hyper-convenience. Consumer intolerance occurs when we have access to things at

pace and then they do not work or work less effectively than we expect them to. In other words, the moment the access is unlocked, our expectations are raised and remain high. Businesses are having to meet these expectations more quickly than ever before. Our desire for newness is also insatiable, so the need for speed is critical in delivering the recommendations in this plan.

7. Curating Events and Experiences

Events will serve as the heartbeat of our retail roadmap, bringing together members of

our community in celebration, exploration, and learning. From pop-up markets and cultural festivals to workshops and immersive experiences, we will curate a diverse array of events that cater to every interest and passion. By fostering a sense of belonging and excitement, these events will not only drive foot traffic to our retail spaces but also foster deeper connections and a sense of shared purpose among our citizens. After-all, retail is no longer about real estate, it is about content, and participation is the new consumption[4].

There will be greater synergy between hospitality and retail sectors, especially regarding the night-time economy and events and experiences that combine the strengths and offerings of these two areas.

In summary, our vision for the retail plan for our island economy is one of mindful and deliberate collaboration, where interconnectedness, community engagement, and regenerative practices converge to create a prosperous and sustainable future. By celebrating our culture, nurturing entrepreneurship, and engaging future citizens, we will transform our shopping streets and retail businesses into vibrant hubs of creativity, innovation, mixed-purpose and prosperity for all.

Future-Fit Retail Roadmap Re-imagining purpose, embracing opportunity

Strategic Goals

Our Retail Roadmap is framed around the following strategic goals:

1. Vibrant

We will focus on vibrancy by ensuring that tackling vacancies is a high priority. This will include a suite of options that work with landlords and businesses to enhance the vibrancy of our streets, rather than deteriorating them. We will be working across Government

to ensure retail is a key feature in the Plan for St Helier and contributes to public realm improvement initiatives. We aim to curate a retail offer that is appealing, exciting, and unique to our Island s needs, driving innovation and entrepreneurship through policy. Additionally, we will provide customer experience training to help upskill workforces and remove barriers to opening, enabling participation in the nighttime economy and weekend trade. Our policymaking will address vacancies to ensure optimal use of bricks and mortar spaces, and we will collaborate on both public realm and amenity improvements to enhance customer experience across physical and digital platforms. We will work with the Arts, Culture and Heritage sector, and the Creative Island Partnership to explore how retail can contribute to Island events and ensure we maximise opportunities alongside hospitality in both the day and night-time economies. Additionally, we will expand the Town Team to enable centralised interventions that enhance the spirit and sense of place.

2. Customer-first

We will prioritise the needs of Jersey s citizens and customers, who are driving the future

of the sector with their demand for hyper-convenience and seamless engagement, across channels. Our aim is to create a habitat where people can live, work, care, and socialise as a community, while making access to this offering easy by responding to clear community feedback. We will ensure that visitors are excited by their experiences and the unique products Jersey has to offer. By increasing awareness of available products and brands, we will make them easily accessible in the most convenient ways. Both digital and physical wayfinding will be attractive and informative, reducing friction for citizens and visitors alike. We will work with stakeholders to enhance public realm attractiveness, creating a retail environment where people want to spend time. Recognising that what works for visitors

also benefits residents, we will stay attuned to shifting consumer trends to better serve future generations and remain competitive. We will strive for world-class customer service standards, enhancing our reputation and fostering skills development for young people.

3. Productive

We will work to ensure businesses can experience growth in omni-channel traffic, helping them effectively convert this traffic into sales and thrive in a globally competitive landscape. The multi-channel space, including social retailing, presents a key opportunity for growth and increased productivity, and we will support businesses in leveraging this potential.

As the sector embraces automation, we will provide access to best-in-class solutions

for businesses to explore and implement. Our policies will incorporate circular economy principles, tackling the climate crisis with a regenerative approach that promotes re- purposing, repairing, and re-using resources on an unprecedented scale. This will enhance productivity and build a more resilient, self-sufficient supply chain, reducing, as far as possible, reliance on imports. Although this is a significant challenge for Jersey, with focus and collaboration, it is an achievable future state.

Each of these strategic goals is outlined and explored over the following pages.

ArtHouse Jersey s Skipton Forget Me Knots (2020) taken by Danny Evans.

Future-Fit Retail Roadmap Re-imagining purpose, embracing opportunity

1. Vibrant

We will focus on vibrancy by ensuring that tackling vacancies is a high priority. This will include a suite of options that work with vacancies to enhance the vibrancy of our streets, rather than deteriorating them. We will be working across Government to ensure retail is a key feature in

the Plan for St Helier and contributes to public realm improvement initiatives. We aim to curate a retail offer that is appealing, exciting, and unique to our Island s needs, driving innovation

and entrepreneurship through policy. Additionally, we will provide customer service training to help upskill workforces and remove barriers to opening, enabling participation in the nighttime economy and weekend trade. Our policymaking will address vacancies to ensure optimal

use of bricks and mortar spaces, and we will collaborate on both public realm and amenity improvements to enhance customer experience across physical and digital platforms. We will work with the Arts, Culture and Heritage sector, and the Creative Island Partnership to explore how retail can contribute to Island events and ensure we maximise opportunities alongside hospitality in both the day and night-time economies. Additionally, we will expand the Town Team to enable centralised interventions that enhance the spirit and sense of place.

Current position and key issues

 Whenever and wherever societies have flourished and prospered rather than stagnated and decayed, creative and workable cities have been at the core Decaying cities, decaying economies, and mounting social troubles travel together. The combination is not coincidental.

Jane Jacobs, 2011

1. Footfall:

The High Street has loyal and regular audience participation in Jersey, an enviable footfall of 7.5 Million per year (approx. 80% of 2019 levels) walk through our main thoroughfare. High footfall does not automatically equate to high sales, but it does do half of the work. The challenge for retail, hospitality, creative industries, and our parishes is to disrupt this audience during their auto-pilot mission to get from bus to office or office to sandwich shop and so on. The challenge is to interrupt the monotony with surprising and delightful events, public art, retail theatre, crafting, attractive windows, digital displays, colour, nature, height, light, floor decals, interesting hoarding and all manner of tricks that make a High Street enjoyable and the place you want to spend your time.

2. A Town Team:

The skill and willingness to achieve this are all within our rich community. The Town Team has already started at a community level but needs some structure and funding to bring this vision to life. An effective town team for St Helier will continue to be community-led and supported by Government, the Parish, and the Town Centre Manager to drive those micro-adjustments that will make a world of difference to the vibrancy we see and feel.

To build a greater overall customer experience on the High Street, the devil will be in the details. Small interventions championed by the Town Team will deliver fast and noticeable changes that are sorely needed.

3. The future of the Town Team may wish to take on a BID-like (Business Improvement District) structure and governance for the longer-term sustainability of the work. Although BIDs vary, the most usual form of BID is succinctly defined by Bristol City Centre BID[5].

 A Business Improvement District is a defined area where business rate payers agree to pay a levy into a fund for a fixed period. Specific agreed initiatives are then delivered to improve the area for businesses.

A BID is commenced when an independent ballot has been conducted. To be successful there must be both a simple majority of the number who vote and a simple majority of the aggregate rateable value represented by those who vote.

4. There are five stages in the development (and cessation) of a BID - Interest, Feasibility, Ballot, Delivery and Disband - are outlined in Figure 1, below, and then discussed more fully.

STAGE 1 STAGE 2 STAGE 3 STAGE 4 Interest Feasibility Ballot Delivery

5. A BID would secure long-term funding for the Retail Sector and the improvements we will need to deliver for St Helier, in the first instance. As the Island Plan designates St Helier

as the retail heart of the Island, there is an inherent starting point for the formation of a BID. Legislation would be required to enable the delivery of this model.

6. Using the UK High Street Task Force s[6] resources, we have been able to score

Jersey s High Street using the 25 priorities for vitality and viability. It is worth noting that all factors contribute to this, but our Island s unique aspect will yield different results when compared to other jurisdictions. The scoring is based on an ascending scale,

10 indicating a much higher priotrity and 1, a much lower priority. It is worth noting

that a BID or Town Team would normally manage these priorities with support from

the Government, local authority, or in Jersey, the Parish. Figure 2, below, shows the opportunities for St Helier s High Street. The top-rated opportunities are:

 Activity (including opening hours and evening economy),

 Retail Offer (offer and brands),

 Innovation and experimentation,

 Recreational Space (play),

 Markets,

 Place-making (marketing, flow),

 Appearance (cleanliness and frontages) and

 Experience (image, visitor satisfaction, service quality and atmosphere).

Figure 2: Priorities for Vitality and Viability of a High Street Assessment for St Helier

Factors Including Score Activity  Opening hours, footfall, shopping hours, evening economy 10 Retail Offer Retail offer, retailer representation 10 Innovation Opportunities to experiment, retail innovation 10 Experience Centre image, visitor satisfaction, service quality, familiarity,  9

atmosphere

Appearance Visual appearance, cleanliness, ground floor frontages  9 Place Marketing Centre marketing, marketing, orientation/flow 9 Markets Traditional markets, street trading 9 Recreational Space Recreational areas, public space, open space, play 9 Vision and Strategy Leadership, collaboration and development strategies 8 Place Management Town centre management, place management, BIDS, town teams 8 Non-retail Offer Attractions, entertainment, non-retail, leisure  8 Merchandise Range, quality of goods, assortment, visual merchandising 8 Attractiveness Sales/turnover, place attractiveness, vacancy rates, attractiveness,  8

retail spend, customer/catchment views, construction of out-of-town

centre

Necessities Car parking, amenities, general facilities 7 Diversity Range/quality of shops, tenant mix, tenant variety, availability of  7

alternative formats, store characteristics, comparisons/convenience,

chain vs independent, supermarket impact, retail diversity, retail

choice

Networks and  Networking; partnerships, community leadership, retail/tenant trust,  6 Partnerships with Parish  tenant/manager relations, strategic alliances, centre empowerment,

stakeholder power, engagement

Figure 2 (continued):

Factors Including Score Accessible Convenience and accessibility 6 Liveable Multi/mono-functional, liveability, personal services, mixed use 6 Walking Walkability, pedestrian flow, cross-shopping, linked trips,  5

connectivity

Barriers to entry Barriers to entry, landlords 5 Adaptability Retail flexibility, retail fragmentation, flexibility, store/centre design,  5

retail unit size, store development, rents turnover

Redevelopment Plans Planning blight, regeneration 5 Anchors Anchors signify character and give importance: retail stores and  4

anchor footfall drivers such as hospitals, universities

Safety/crime A centre KPI measuring perception or actual crime including  2

shoplifting

Functionality The degree to which a centre fulfils a role - e.g. service centre,  2 employment centre, residential centre, tourist centre

Data created using UK High Street Task Force resources.

7. Citizen Engagement:

To understand what the people of Jersey s aspirations are for vibrancy, we must

consider all the engagement that has been done with our citizens. Jersey s overall Better Life Index 2021 was 6.4 (out of 10), ranking 24 out of 41 nations, below the OECD (Organisation for Economic Cooperation and Development) average, the UK and France. On both a national and regional level, Jersey ranked bottom for civic engagement. However, arm s length organisations and charities are already working at developing better relations with specific groups. Listening and delivering is key to maintaining trust. Enabling inclusive events and a more relevant public realm are a key part in bringing communities together and enabling better civic engagement.

8. Turnaround for retail will come from a detailed understanding of what is the truth or insight behind the customer. The insights already provided by last year s pilot: Public Voice Common Ground, accelerating civic engagement around St Helier tells us what people really feel about the town and their experience. The specific retail research

pilot was conducted live in one of the vacant shop windows in December 2023 and

it captured mostly citizens who either live or work in town or were there to shop. The survey was deliberately simple but direct, asking people what they thought the space should be used for: If you had a magic wand, what would be in this building? (see Figure 3 on the next page) and What does wonderful look like for St Helier? This type of temperature check is vital for the sector, as it gives us a live indication of the consumer s desires. A recent social media poll also gave us a flash indication of consumer habits in the Central Markets and is useful direct feedback for businesses, see Figure 4, also on the next page.*

Figure 3: Magic Wand Vacancy Solutions

Entertainment Space Retail - Primark

Retail - H&M Retail - Zara Community Space Visual Inspiration Other Retailers

Mixed use: Retail and Other

Social Enterprise

0 5 10 15 20

*Data from 96 respondents who completed the Public Voice Common Ground survey, December Figure 4: Jersey Markets Social Media Poll

What will you be picking up from the market this week?

20% Emoji Bar chart20%

60%

0%

Data from Instagram Jerseymarketsofficial account

Figure 5: Magic Wand Vacancy Solutions - Why are you in town today?

I live here 47% I work here 33%

I'm at school here 4%

I'm on holiday or visiting

I'm shopping 35%

I've come for the culture (eg art, theatre...) 5%

I'm looking for something to do 8%

Other (please specify) 6%

Data from 96 respondents

9. Careers in Retail:

Retail and Hospitality are often a citizen s first introduction to the workplace and are known as feeder sectors, developing young people s skills for evolution into other sectors of the economy. In Jersey, we will often see this evolution into the dominant Finance Industry or indeed the Civil Service. Often underestimated, those foundational softer skills are vital components for future career paths. Excellence in this area is vital as it equates directly to the quality of offering that we can provide for both locals and visitors. There is a clear opportunity to highlight retail careers and pathways at an earlier stage for children on the island and a case for promoting the customer experience skills that are invaluable to wherever the career path may lead.

10. Customer Experience:

That being said, both the recent Jersey Retail 2023 Report and the Jersey Markets Strategic Review (2022) highlighted the lack of quality customer experience on the island. The recent visual cataloguing of the High Street alongside the Commercial Vacancy Count also revealed that only 21% of our shops ranked in the High curb appeal ranking. Similarly, the Markets Strategic Review concluded that: Customer Service delivered by most businesses is ok, nothing better. There is a clear need for improved standards and visual merchandising upskilling across the sector will be key to the vibrancy. The kind of skills that can be intangible to some make the retail environment sing, and it is this magic sticky skill set that we need to invest in for the future. If we take the Markets as a microcosm of the broader retail environment, the conclusions of eventual market failure, if left, should be taken seriously:

 Whilst the cleansing, waste management and operations of both markets are generally good, the customer experience in the market is ok and far from outstanding or memorable. Both markets have lots of space but little place . We know from lots of centres and markets that we have worked on that successful places need to be experiential, memorable, exciting, visible, accessible, evolving, well marketed and well managed. As a simple checklist, the markets are failing.

Taken from page 49 of the Jersey Markets Strategic Review (2022)

The same feedback is reflected in the recent Jersey Retail 2023 Report - Perceptions, experience and needs published by 4insight. The graphic below highlights the need for better customer service.

Most mentioned improvements

Variation of affordable brands Parking

Accessibility More shops

Automatically  Remove GST

remove VAT

Price Choice Clothing Customer

 items service

Improved atmosphere

Hypermarkets /

supermarkets

Flexible opening hours

What could improve your shopping experience in Jersey?

 The main call for improving retail in Jersey was  poor, large call for better training, more helpful

to introduce different affordable high-street  staff and just generally more friendliness brands, in particular, H&M, Zara, The Range  Accessibility was mentioned many times, in

(222 mentions) particular disability access and parking

  Price was second most mentioned improvement,    Hyper markets or a large supermarket like Lidl

calling for cheaper prices or prices compared  was called for to help affordability and provide better to the UK (212 mentions) a better range of choice

 Many called for a better choice and range of    Other calls for: Food/ dining, online capabilities items to choose from (186 mentions) e.g. click and collect, independent shops, strong

dislike toward perceived monopoly of Sandpiper,  Parking was a strong factor for many, desiring

entertainment/ events, facilities e.g. toilets,

more availability of parking, free parking, shopper

parking, or cheaper parking (140 mentions) promotions, Sunday trading, cover/ shelter, less

traffic/ more pedestrianisation, cycling access,

 Strong perception that customer service is  improved bus service

This year Jersey Business has managed to re-instate the Retail Apprenticeship Scheme at Highlands college and fill the course. This is a meaningful step in the right direction and a commitment from retailers to invest in their talent for the long term. There is a clear need to raise the bar more generally and turn the dial on culture in the service sectors, which encourages the day-makers and the joy-givers to enliven our economy.

Strategy and opportunity

11. The High Street is such a visceral sign of the state of the local economy and

the nostalgia for the brands and experiences of by-gone years should not be underestimated. The demise of many High Streets in the UK has saddened the population and in turn manifested into other socially destabilising ripples throughout society.

12. So how do you solve a problem like the High Street? Jersey does not suffer the same woes on our main High Street as many UK cities; we have enviable footfall of 7.5 million visits each year, and a huge percentage of our population (approximately two thirds of the Island s workforce) work around and visit our High Street daily. Although the feeling of decline is less pronounced, it is still evident, given the rising number of vacancies, which are currently at a record high percentage in our recent recorded history, 9.5%[7] (See Figure 6 below). The data tells us half the story, the impression that you get when you walk around streets where nearly 10% of the shops are vacant is the real rub, particularly when the main spine is only a quarter of a mile long. The message we get from the property owners is that there is a lack of care. Often, they

are unkempt, unclean, and unattractive and filled with outdated posters. As already mentioned, the retail business has shifted from a bricks and mortar game to a content game. When a property is in between tenants, often for extended periods, the need for engaging content becomes even more relevant. Jersey will be able to harness the ability for meanwhile use of vacant shop windows, retail space and hoarding by having meaningful conversations with both landlords and commercial agents who care about the vibrancy of the High Street and their own asset. In the longer-term, Jersey will need to look at regulatory incentives and policy development, which will encourage more of this action to become widespread practice. The message is truly: disrupt or be disrupted, or retail Darwinism, as Natalie Berg often points out in her podcast: Retail Disrupted.

Figure 6: High Street vacancy data

10.0% 9.4% 9.2% 9.5%

8.9%

8.0% 8.0% 8.0% 8.2% 8.6% 7.9% 8.3% 8.3% 7.9%

7.5% 7.5%

6.9% 6.7%

6.0%

4.0%

2.0%

0.0%

Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024

Data from Jersey Business, March 2024.

13. Vacancy can also be addressed by an active commitment to seek inward investment and a communication of the unique selling points to retailing on the Island, as well as guidance on how to deal with challenges. This will be done through the Locate Jersey team, advertising Jersey s values to business prospects who do not yet have a footprint in Jersey.
14. Changes to Government policy can affect change here. The General Development Order is one example of legislation that if amended could prove helpful to businesses seeking to take on a lease, as it could allow the simplification of change of uses for property, thereby removing the need for costly planning applications and expanding the traditional retail scope of the designated Retail area to something much wider and exciting for the people who visit, expanding mixed-use concepts and more social- enterprise concepts to name but a few.
15. There is of course opportunity in the visual sphere, as mentioned. What we see impacts how we feel about a place. It is a question of atmosphere, and this matters in retail and in place-making. We have the chance to transform the way-fairing and signage on our main shopping streets and in the markets and encourage improvement of standards either by incentive or order, or both.
16. It would be impossible to make a bold plan for vibrancy in the retail realm without considering the Central Markets. The Central and Fish markets in St Helier are both historical and prized in the eye of the citizen. They are frequently referred to as The Jewels in the Crown of the town centre for good reason: they are housed in a grand and beautiful public building, which provides theatre in its very architecture. Moreover, the fountain, the heart of this architectural diamond, is the gathering place for anyone wishing to find a friend and explore the labyrinth of treasured shops and eateries

within. Adored by so many islanders and visitors alike, the markets are also in obvious need of revitalisation. As a pivotal asset for the future, it is important that the Central Market remains relevant to the changing consumer and that the Government exploits

the economic potential of these buildings. The Jersey Markets Strategic Review (2022) summarises the potential of the market, whilst highlighting the risk of managing decline:

 The current sense of arrival at all entrances in both markets is distinctly underwhelming. Vehicles need to be prohibited from parking directly outside the market entrances. The entrances need to be much clearer,

more impactful, and wider. The market experience would be improved

if more customer seating could be provided, both shared spaces as well

as more seating internally and externally at kiosks. Internally parts of

the experience are good, externally it s not reflected. The floors in both markets are in need of urgent upgrade and refurbishment. The market needs to act / perform like the anchor and key assets they could and

should be; on every level. Both markets need to work together much

more effectively and be better integrated to increase their joint appeal.

The markets need to offer an outstanding experience, vibrant mix and customer service to achieve the considerable retail potential they have.  [8]

17. Furthermore, the review is unapologetic about the need to address standards within the market, which will be crucial to its future success:

 Collectively the market owners / landlord, management and tenants have to work together much more effectively to provide clear additional reasons for consumers to visit, be that mix and offer, promotions, marketing, better use of social media, demonstrations, performances, events and so on. Traders need to be guided and supported to improve their offer / delivery. Tenants selling the most appropriate products in the most exciting way with the best levels of customer service should be prioritised for longer lease extensions. Those that are coasting, with dated shopfits and delivering basic reactive customer service need to up their game or move aside for better quality more energetic new traders.

18. The opportunity expressed for the markets is the blueprint opportunity for the whole sector. Scale up all the recommendations you find in this strategic review, and many fit both the retail and hospitality sectors perfectly. If they sound like obvious things, that is because they often are just that. Retail is in the detail and providing clear, additional reasons for consumers to visit is the goal.
19. The consumer survey also reveals there is strong demand for opening hours

focused on the needs of the citizens and visitors. This should come as no surprise to businesses and is an opportunity to capture a market that is not being exploited. Those businesses that are innovating in their availability for the customer, be that through physically remaining open later or earlier, or indeed on Sundays, or pivoting business priorities, so that the physical store asset can serve customers evolving daytime to night-time needs (store and cafe by day, fitness space by night as an example), or by implementing digital changes that allow transactions and interactions to occur even when the premises are shut (digital ordering screens in the shop windows as another example.). The Government has already enabled Sunday trading for businesses and should review remaining barriers in the regulation, for a future that is hyper-convenient for both businesses and consumers.

Consumer Survey Results:

Key calls for...

 Larger brands/department stores, more choice    in the evening, even if just a Thursday evening.

of brands and items. Larger brands such as Zara,  Maybe even closing on a Monday as many work H&M, Primark could offer better choice and  from home then

prices, however lots of discussion over whether

this would be practical from a demand/economic    Sunday opening

perspective Events and entertainment to attract    Garden centres open on Sundays

islanders, created a more attractive atmosphere

More shopper parking, accessible and cheaper   Markets open for longer hours, especially

Thursday afternoons

 Better value for money items

 Opening times to reflect working hours, e.g. opening later in the morning and much later

Source - 4insights: Jersey Retail 2023 Report: Perceptions, experience and needs

Actions

Key actions Meets opportunity Responsible Due date Measurement

1. Enrich the Vacancy  Vacancy and   Government  Q3 2024 Data map to identify hot Data count with  Place-making Economy spots and map trends over pictural evidence of  time.

the shop frontages

and building

conditions

2. Establish a Town  Town initiatives for  2. Government  2. Q4 2024 Bi-annual published

Team and agree  Vibrancy  Economy  3. Q2  reporting against town team terms of reference and POSH 2025 actions, included as terms of

reference.

3. Town Team

3. Establish key

for business

actions for the Town  case for

Team and explore  funding.

potential funding

structure that

delivers on small

interventions that

bring vibrancy to

the town

4. Scope a BID  Town Improvements  Government  Q3 2025 Delivery of framework. delivery framework,  and vibrancy Economy

to establish

what legislative

environment

would allow for

a BID structure

in Jersey Law

5. Revise the Shop  Widening economic  Government  Q1 2025 Revision of regulation Opening Hours  opportunity Economy completed. regulations to

remove any

outdated and

unnecessary

barriers to business

6. Encourage  Widening economic  Industry  BAU  Jersey Business reporting. businesses to  opportunity with support  (Business

review customer  from Jersey  as

demand and  Business  unusual.)

experiment with  Limited and the

Town Team.

different patterns of

trading to optimise

the customer

experience and

innovate on product

Actions (continued)

Key actions Meets opportunity Responsible Due date Measurement

7. Encourage  Widening economic  Industry  BAU Jersey Business Reporting businesses to  opportunity  with support

realise the full  and increase  from Jersey

potential of their  productivity Business

products and  Limited.

asset-use for

both daytime and

evening economy

to realise their

productivity

potential

8. Establish budget  Awareness of  Town Team Q2 2025 Tender process scoped. requirements for  product

a PR agency for St

Helier and Retail

9. Work with a  Vibrancy and   Government  Q3 2025 Design winner announced delivery partner  place-making Economy and  and place branding adopted. to devise a design  Creative Island

competition for  Partnership

place-branding and

design standards

handbook, helping

Jersey stand-out

as a recognisable

destination

10. Work with Skills  Widening economic  Government  Q1 2025 Skills funding confirmed Jersey to bridge  opportunity  Economy and  and customer experience the skills gap  and increase  CYPES training rolled out across in customer  productivity Retail and Hospitality experience  sectors.

excellence for

the sector. Apply

for funding for a

CX kick-starter

to upskill the

workforce at pace

Actions (continued)

Key actions Meets opportunity Responsible Due date Measurement

11. Create a playbook  Inward Investment  Government  11. Q4 2024 Playbook produced and

to attract Inward  and vacancy Economy 12. Q4  meetings/events conducted. Investment in the  2024

sector and be

explicit about the

opportunity in

Jersey, both for

locals and for global

brands.

12. Host a series

of events with potential investors to explore Jersey.

13. Work with Planning  Inward Investment  Government  Q4 2024 Changes agreed and made Policy officers  and vacancy Economy and  to the General Development to recommend  Planning Policy  Order more changes of changes to  use permitted.

the General

Development Order

that would allow for

more flexibility with

changes of use

14. Develop guidelines  Vibrancy and   POSH and  Q2 2025 Guidelines produced and for empty shop  place-making Government  permissions contingent on window standards,   Economy/  compliance.

as well as style  Jersey

guidelines for  Property

Holdings and

scaffolding and

SOJDC

hoarding to

maximise the value

of the messaging

on the High Street

15. Continue to work  Vibrancy and  Government  Q1 2025 Recruited BD Manager and cross-departmentally  widening economic  - Jersey  new lease agreements

on the strategic  opportunity Property  signed with market tenants. development of the  Holdings,  A regular tenant review central markets, to  supported by  established to align with the

Economy  10-point charter.

include:

a) supporting

the recruitment

of a Business Development Manager, alongside the existing Operations Manager

Actions (continued)

Key actions Meets opportunity Responsible Due date Measurement

and b) reviewing the  Vibrancy and  Government  Q1 2025 Recruited BD Manager and lease arrangements  widening economic  - Jersey  new lease agreements

to raise the standards  opportunity Property  signed with market tenants. in line with the  Holdings,  A regular tenant review 10-point criteria  supported by  established to align with the

Economy  10-point charter.

for tenants.

16. Work with the  Vibrancy and  Government  BAU Officer group representation. other stakeholders  widening economic  and Private

looking at the  opportunity  Sector Public

overarching  Realm, Jersey

plan for town, to  Property

Holdings,

ensure the sector

Transport and

is represented in

Operations,

all conversations  Planning

concerning public  Policy,

realm and major  Heritage,

developments SOJDC,

Commercial

agents.

17. Scope a mechanism  Vibrancy and  Government  Q2 2025 Actioned by the cross-

for a tidy-up of the  widening economic  Economy and  department working group retail facias to raise  opportunity POSH for Retail.

the bar on visible

standards and

convert more of the

footfall. A bi-annual

 branchage style

clean-up for the

High Street

18. Develop a  Vibrancy Government  Q1 2025 Programme scoped and programme of   Arts,  actioned/delivered by local activations and  Culture and  economy department. animations for the  Heritage (Local

Central Markets  Economy)

to drive footfall,

increase dwell

time and drive

community spirit

19. Work with CYPES  Customer  Government  Q1 2026 Plan with active promotion to develop a  Experience and  Economy and  at careers events. programme of  Careers CYPES

careers promotion

for the sector

Future-Fit Retail Roadmap Re-imagining purpose, embracing opportunity

2. Customer first

We will prioritise the needs of Jersey s citizens and customers, who are driving the future of the sector with their demand for hyper-convenience and seamless engagement, across channels. Our aim is to create a habitat where people can live, work, care, and socialise as a community, while making access to this offering easy by responding to clear community feedback. We

will ensure that visitors are excited by their experiences and the unique products Jersey has

to offer. By increasing awareness of available products and brands, we will make them easily accessible in the most convenient ways. Both digital and physical wayfinding will be attractive and informative, reducing friction for citizens and visitors alike. We will work with stakeholders to enhance public realm attractiveness, creating a retail environment where people want to spend time. Recognising that what works for visitors also benefits residents, we will stay attuned to shifting consumer trends to better serve future generations and remain competitive. We will strive for world-class customer service standards, enhancing our reputation and fostering skills development for young people.

Current position and key issues

1. If convenience is key, businesses should be trying to unlock doors here, fast. We

know from the Jersey Retail 2023 Report - Perceptions, experiences & needs, that shopping decisions are complex, and price is not the only determinant of where islanders spend their money. Indeed, supporting local is more important to consumers now than it was in 2018. Farm shops for example, saw 7% more visitors and 70% of Islanders are choosing to purchase items on-island, even though they perceive the

item to be available online. There is a definite willingness to buy from bricks and mortar and to buy locally is important. That said, consumers are telling us very clearly that

the reasons they choose to shop in-person are multi-faceted: specialist shops, close to work or home, parking available, and the range of shops. They are also clear that discounts and promotions, more brand choice, independent shops and later closing times would incentivise them to shop more often in Jersey. Put simply, understanding value, understanding brand availability, exciting, unique retail environments and convenient opening times would all drive more spending in the local economy. The Jersey Consumer Council s new price comparison app, alongside the key consumer issues that they support will strengthen the voice of the customer on the Island now

and into the future. The Council is well-placed to champion Islander s and help us understand percieved value in our goods. Recent updates to the constitution have also widened the scope of the Council to look at factors outside of just price-comparison that influence our purchasing decisions.

Figure 7: Cost, convenience and unavailability on-island main reasons for purchasing online

Cost 71% Convenience 41%

Unavailable in Jersey Not available in Jersey 39% increased by 24%

from 2018

Larger range 36%

Ease of shopping 29%

Promotions / deals 21%

To avoid crowds 8%

Ability to compare 6%

User-friendliness 4%

Ease of return / exchange 4%

Product info provided 3%

Other 2%

Source: Jersey Retail 2023 Report

2. Out-of-town retail hubs can be found throughout the Island, serving the local Parish communities, and often highlighting exciting retail concepts that are like hidden treasures, waiting to be discovered. Blending into the natural landscape and the

charm of individual parishes, the appeal of small and targeted retail offerings

outside of St Helier is necessary. Major food retail remains necessary outside of

town for large weekly shops and is evenly distributed across the island at present. Convenience stores are also a crucial amenity for top -up shops and for those who

are disadvantaged by lack of personal transport or with limited physical ability. They also serve to engage community members in social activity (particularly when hosting other activities such as post-office services, cafes, small festivals/markets and more). Farm shops, local garden centres and our hedge veg stalls all add to the charm of Island life and often connect us to local producers and local products directly. Crucially community is the soil on which hospitality and retail thrive. Building the right habitat allows the community to grow and regenerate. Crucially, feedback from over 800 surveyed Islanders indicated that 82% call for more support of local farm, farmers and produce but also highlights that 57% say it is too hard to find or too expensive[9] (53%.)

3. Anchors are an important consideration in the retail landscape, as a key driver of footfall and a significant community amenity. Anchors of places, such as hospitals, libraries, large sporting venues, arts and culture centres, schools, central markets and government buildings will all serve the community and provide the foundational layer for a thriving retail environment. This is the base layer of soil to provide a habitat

for the community. Desirable retail anchors enhance this and add to the colour of the place. Retail anchors of the future are not necessarily huge High Street names or large footprint stores, they will often be brands with purpose, where the customer can feel they belong and that serves more than one need in their daily life.

4. The Visitor Economy Strategy 2023 points to the need for vibrancy in the Town Centre and an attractive retail offering to enhance the product experience for visitors and locals: The appearance of St Helier requires improvement to enhance the visitor experience and sense of place [ ] There is much opportunity to enhance the quality of St Helier as a place to live and visit. Given the statistics from the latest exit survey, conducted for Visit Jersey, Figure 8, below, we can see that over 70% of respondents cited shopping as one of their activities. Indeed, shopping for non-essential items was the top activity for our visitors. Given that the concentration of leisure, business and family stays will happen in St Helier or the nearby parishes, it is essential that both our public realm and High Street extend the most inviting offer and content.

Figure 8: Activities participated in during the visit, 2023*

Shopping for non-essential items Self-guided walk

Used public bus service Paid visitor attraction

Free visitor attraction Guided bus or coach tour Hired a car including Evie

Self-guided cycle Cultural event

Watched a sporting event Guided walk

Sea-based activities

71%

65%

57%

51%

43%

14%

10%

6% 6%

4%

2% 1%

*NB - The percentages are only for visitors travelling on the scheduled air and sea routes. It includes those on a day visit as well as those staying for at least a night.

In 2023, the most popular activities with visitors continued to be shopping for non-essential items and taking a self-guided walk. A significantly reduced proportion of visitors took part in sea-based activities in the latest year which is likely to be the result of bad weather of the summer season in 2023.

Despite the obvious inclination for visitors to shop in Jersey, we must also note from the survey that the score for shopping and retail was lower overall than everything else.

Figure 9: Average rating scores for island attributes, 2017 to 2023*

2017 2018 2019 2022 2023 Safety & security 4.7 4.7 4.7 4.8 4.8 Beaches 4.8 4.7

4.7 4.7 4.8

Countryside 4.7 4.6 Cleanliness 4.7 4.6 4.7 4.8 4.7 Jersey in general 4.5 4.5 4.5 4.87 4.6 Accommodation 4.4 4.4 4.6 4.6 Attractions 4.4 4.3 4.3 4.5 4.4 Restaurants, cafés & bars 4.4 4.3 4.3 4.5 4.5 Shops / retail 4.0 4.0 4.0 4.2 4.1 Value for money 3.8 3.8 3.9 3.8 3.7

*NB - Average scores are based upon a rating scale from 5 for Very good down to 1 for Very poor . The rating for beaches and countryside were combined in one question prior to 2022. The category of accommodation was added in 2018.

Strategy and opportunity

6. Visitor Spends:

There is huge potential in our shopping offer for Visitors. We have a paper-based Goods and Services Tax refund scheme that is not well marketed and is in-convenient for both consumer and retailer. We are looking to digitise the scheme imminently to ensure greater levels of compliance and accuracy, as well as the opportunity to include more retailers and maximise the spend levels from our visitors. The PWC Jersey Retail Report 2020 had already highlighted this as a major opportunity for the Island.

7. The immediate recommendation from PWC was one of no hesitation:

 Provide centralised marketing for the comparative advantage of

Jersey s retail sector for a tourist demographic. Primarily, this will include the low tax environment. Policymakers and ALOs (Arms Length Organisations) should consider putting together a centralised list of retailers who are signed up to the GST Visitor Refund Scheme and promote this in a single place e.g. on Visit Jersey for prospective visitors. This should be done as soon as possible, to capitalise on

the market share that will be lost as a result of a change in the UK s VAT system in January 2021 and should be considered carefully in order to avoid any potential political backlash. As part of this process, policymakers and ALOs should look to ease the process for visitors, making it more seamless and quicker (with the refund process currently taking around 3 months) using digital tools. Crucially, any marketing strategy should be coordinated with Visit Jersey s wider marketing programme (for example, including that for the wider visitor economy), to ensure that Jersey is not perceived as a low- profile destination, and the full wealth of its offerings are promoted. This will include the unique heritage associated with the island.

8. The future development of this scheme should be carefully managed and the marketing of the destination appropriate for the future consumers, who could well be coming from destinations that we have not seen before in great numbers.
9. Events and Animation:

The opportunity for the Island to develop a firm 10-year events and animations plan is striking. The current landscape is a mix of things that have always been done in Jersey and may or may not have evolved or changed and several new entrants to the market, who may need seed funding to help them off the ground. A clear strategy for the events- led economy, to include the corner-stone sectors of agriculture, arts, culture and heritage, retail and hospitality, will provide the over-arching goals for the Island in the future and develop the playground for the community to celebrate and participate in, as well as attracting global audiences to our wonderful home.

10. Retail Theatre and Customer Experience:

Retail theatre is frequently desired as a means of attracting customers and engaging them. However, retail theatre is often misunderstood or exaggerated in people s minds as a nice-to-have rather than an essential component to their business plan. If we extend the metaphor further, we can see footfall as our audience and the conversion of that footfall as box-office bookings. Once the audience is through the door, the curtain is lifted, and it is show-time. The show can be subtle: a welcome, a smile, clever merchandising, helpful signage but crucially, you can only be as good as your last performance and the need for outstanding customer journeys is real. Animation in retail is an important consideration for the public realm but the responsibility for this is in the hands of business leaders and owners, whose audiences will judge whether the encore is worth their loyalty. Where we do have excellence, we should celebrate these achievements, with awards, which will encourage others to raise their standards and point them to best practice.

11. Accessibility:

Making it easy for people to shop is essential, if we wish to maintain the footfall and vibrancy of the core retail in St Helier and the High Street. We can see from the last two consumer surveys that there has not been any significant shift in the way people access the shops, which is in their private vehicle this number is above 70% of survey respondents in both 2018 and 2022. Shopper parking remains important to

the consumer but the future demands that we respond with clever policies across government that maintain accessibility of goods but respond appropriately to the challenge of de-carbonising at speed. Digital Jersey have already run a retail workshop to introduce pilots that might solve these challenges in the future: drone deliveries and driverless vehicle regulations, as recent examples.

12. Local Product:

There is a clear customer appetite to shop locally and to support local suppliers and producers. Genuine Jersey is already successfully promoting makers of goods with local provenance. The Association was formed to celebrate local artisans, farmers, bakers, growers and craftsmen, ensuring that their products can be easily recognised as being made in Jersey through the Genuine Jersey brand. Over the years, the products which bear the Genuine Jersey hallmark have become even more diverse. The membership now includes dairy and farm produce, fish and shellfish, sweet treats, beverages, arts and crafts, flowers, plants and jewellery. It is a celebration of the best in Jersey that has been either reared, caught, grown or made on Island. Whilst many of the celebrated products can be found in local supermarkets you can also search out Genuine Jersey produce

on roadside stalls, farm shops, galleries, online craft sites and retail outlets. Given the consumer desire and the established association, there is opportunity to develop the retailing of local produce as well as schemes that reward consumers for their valuable loyalty to the local economy, for example via mechanisms such as local currency and local loyalty schemes.

The Carbon Neutral Roadmap points to low-carbon lifestyles for Islanders and the OE1 policy looks specifically at scope 3 emissions. One of the smart goals to tackle this points to locally sourced goods and services and how we can tackle our emissions with our consumption choices, considering local to reduce our impact in both product choice and transportation consideration.

13. Licencing:

Given the positive global reputation that many of our unique local products already have, there is an undoubtable opportunity to develop a licensing plan for these important properties, Jersey Royal being an obvious starting point. Understanding the Intellectual Property landscape at our fingertips will also help us to widen the licensing opportunity beyond produce and into our heritage assets and beyond. There is an opportunity to unlock a secondary economy through the licensing of intellectual property, such as logos, names and insignia. This process of leasing a trademarked or copyrighted asset for use in connection with a product, service, or promotion will need to be developed alongside other stakeholders to maximise the return on investment.

Actions

Recommendation Meets opportunity Responsible Due date Measurement

20. Work with Digital  Accessibility Government  Q4 2024 Included in future Impact Jersey on the Impact  Economy and  Fund scheme.

Fund to discover  Digital Jersey

innovators who

can respond to the

consumer need to

understand the brand

availability on the

Island and how to

access them

21. Work in partnership  Customer  Government -  Q2 2025 Event s plan developed with Arts Culture and  Experience Econom  for the next 10 years, Heritage, Agriculture,  to include multi-sector Visit Jersey, Jersey  opportunities.

Business, private

sector events-

economy stakeholders

and the Parish

leadership team to

develop an Event s

plan for the Island for

the next decade

22. Work with the  Customer  Private Sector BAU Jersey CX working Jersey CX Alliance  Experience group.

to support training,

thought leadership

publications and

awards that champion

Customer Service

excellence

23. Develop a plan to  Customer  Government  Q4 2025 Route to market extend local spend,  Experience  econom  plan developed and availability and  with Genuine  published. visibility Jerse nd

F rm Jerse

24. Develop a Digital GST  Unlocking economic  Government  Q1 2025 Transition to a digital refund scheme to  opportunity and   Treasury  solution completed and include all ports and  increasing visitor  and Economy,  installed.

enhance compliance  spend supported

and traceability.  by Jersey

Business, Visit

Drive more spend by

Jersey and

reducing the Minimum

Ports of Jersey

Purchase Value

Actions (continued)

Future-Fit Retail Roadmap Re-imagining purpose, embracing opportunity

3. Productive

We will work to ensure businesses can experience growth in omni-channel traffic, helping them effectively convert this traffic into sales and thrive in a globally competitive landscape. The multi- channel space, including social retailing, presents a key opportunity for growth and increased productivity, and we will support businesses in leveraging this potential. As the sector embraces automation, we will provide access to best-in-class solutions for businesses to explore and implement. Our policies will incorporate circular economy principles, tackling the climate crisis with a regenerative approach that promotes re-purposing, repairing, and re-using resources on

an unprecedented scale. This will enhance productivity and build a more resilient, self-sufficient supply chain, reducing, as far as possible, reliance on imports. Although this is a significant challenge for Jersey, with focus and collaboration, it is an achievable future state.

Current position and key issues

1. Figure 10 below illustrates the productivity gap between five sectors in Jersey and the respective productivity of international peers at the productivity frontier. If these sectors met the same PPP (Purchasing Power Parity)-adjusted level of productivity of frontier economies, the Jersey economy would be 11% larger than it was in 2022.

Figure 10: Productivity gap by sector

2023 Financial Information &

Sector Construction Hospitality Retail

Services communication 2021 GVA £400m £190m £320m £1,920b £91.5m GVA % change 1998 - 2021 +61% -14% -19% -24% -5%* 2021 GVA per-FTE £67,000 £40,000 £48,000 £149,000 £78,000

Productivity gap change % +24% +18% -4% -37% +6%* 1999 - 2019

Productivity gap per FTE with 64 / 100 56 / 100 46 / 100 33 / 100 50 / 100 European leader (PPP)

Total productivity gap (£) £65m £22m £110m £280m £20m

1. All figures are Purchasing Power Parity adjusted
2. Productivity gap % is based on trend growth rate in sector productivity leader country between 2011 - 2019.
3. Figures provided for the broader Transport, storage & communication sector

2. The ability for Jersey to meet the potential productivity gap of £110m is limited by the very things that give frontier retail economies such as The Netherlands an advantage, such as: advanced logistics networks, globally connected distribution hubs, infrastructure allowing fast supply chain operations, best in-class technological integrations, supportive regulatory environment and geographic advantages, all of which help reduce costs and support rapid innovation in all areas. Moreover, Jersey s Future Economy Programme (FEP) made the following observations about the current challenges:

Figure 11: Case study: Retail in Focus (FEP)

Compared to other jurisdictions, the retail sector has, in general, been slow to invest in digitally-enabled business models. The dominance of small businesses limits the willingness and ability of firms to invest and innovate.

A lack of choice and variety in available products - in particular from discount retailers - has meant that residents are discouraged from shopping more in St Helier.

There is a resulting dependence on imported inputs and off-shore brands - so much so that the majority of spend on Jersey s retail sector goes to off-Island businesses (Jersey Supply-Use and Input-Output Tables).

For every £1 of spending per year on Jersey s retail sector, 41.7p would remain in the Jersey economy.

Labour productivity in Jersey has been particularly impacted following the loss of LVCR in Jersey in 2011 - driving down productivity further.

Source: The Future Economy Programme

3. Despite the given advantages that other markets have to enable growth in productivity, Jersey has opportunities to turn the dial in the right direction and make changes

that will end the stagnation and enable the retail revolution. The Future Economy Programme has already identified the key levers for this:

Figure 11: Future Economy Programme - Sector opportunities

Sector opportunities

Theme Retail

Retailers can use technology to automate repetitive tasks, streamline Technology operations, and improve customer experiences. This can include tools such

as mobile point of sale systems (ePOS), inventory management software,

and customer relationship management (CRM) software .

Capital By collecting data on customer behaviour and preferences, retailers can Personalisation tailor their offerings and marketing efforts to individual customers, improving

customer satisfaction and loyalty .

Scale footprint Retailers can improve the layout and design of their stores to make them more appealing to customers and improve their shopping experience .

Providing training and development opportunities for employees can help Training improve their skills and knowledge, which can lead to greater efficiency

Human and productivity .

Capital

Data analytics By analysing data on sales, customer behaviour, and inventory, retailers can skills make informed decisions about their operations and optimize their business

processes .

The planning system should support the industry to meet the challenges Planning of online shopping, while continuing to protect the core retail center of

St Helier. This should include potential change of use where this will

contribute to the sustainability of the town center.

Business

Environment Efforts could be made to adapt the islands retail environment away from tradition retail towards the more immersive and 'experience' based services.

Diversification A more developed offering in 'experience' goods and services would strengthen the sectors resilience and help differentiate it in the face of

changing consumer habits (which favour e-commerce and in turn put a downward pressure on traditional retail productivity) .

Source: The Future Economy Programme

Strategy and opportunity

4. Automation:

Jersey Business conducted a productivity survey in 2023 of the Island s businesses

and identified automation as one of the productivity drivers for the sector. The survey acknowledged that: 61.3% disagree that their processes are fully automated wherever possible. The sector is ripe for automation to increase productivity, and this is evident in the plethora of automated options available on the market: product labelling, HR systems, shelf labelling, vending machines, shop floor communication devices, AI-powered customer engagement, hyper-personalisation, Point of Sale (POS), to name but a few. The consumer is equally skilled in using such technologies and increasingly finds this easy to engage with and desires more frictionless omni-channel interaction. There is

no silver bullet solution that will solve the productivity conundrum of the sector, but the solution will lie in each business understanding the landscape and carefully evaluating where to invest for the maximum return. As a result of the increasing demand for just- in-time living, we will see an increasing amount of automation in retail. Once deemed unthinkable, consumers are now completely at ease with automated tills, intelligent shelf labelling, AI-powered chat-bot customer service and enhanced vending machines as part of the frictionless adaptations that retailers have made to their offer. In the future, we will see even more of this, and the things that are unthinkable in Jersey now will be business as usual in the next few years.

Cameras, lens technology and voice recognition services will also be major contributors to this move into hyper-convenience and the way we receive goods will also see innovations. The emerging trend with delivery partners and car brands is now automatic boot-delivery, for example, negating the need for you to be home to receive your item.

Jersey Business and Digital Jersey are both well placed to help the retail sector navigate this and there is also an impact fund that will now enables quick innovation in this area.

5. Digital Empowerment and Competition:

With an abundance of best-in-class solutions, the Jersey retail sector can adapt quickly. Ultimately, the most agile businesses will win and those SMEs who work with the changing customer behaviour and not those in hope that the habits will not stick or indeed get stuck in nostalgia of a bygone era. The hard reality is that we live in a time where you can read a review of a product, buy it in one click and have it delivered the next day or even the next hour in some places. We can also buy goods on subscription

to be auto replenished at the rate we consume them, thus automating our consumer choice and eroding the ability for products to compete for that place in our purchasing consciousness. Jersey has a particular competitive advantage here in that the High

Street can compete on a hyper-convenient level of getting the product to the customer more quickly than posting it. Businesses will need to capitalise on this now and add value by stripping out complexity.

6. Given the high percentage of micro businesses[10] on the island, we know there is a gap in online presence or access to inventory for customers[11]. Knowing the customer is agnostic to the channel of engagement, any lack in this area could spell the demise of those businesses and our High Street. It is critical therefore that the skills gap here is remedied immediately to allow the sector to have a meaningful competitive advantage on the global stage.

7. Technology will also create an opportunity for Jersey s retail sector to launch new labour models that give employees more control of their schedules and work, while remaining part of a workforce and community. Already today, almost 10 percent[12] of UK adults access work via an online platform at least once a week, twice the share in 2016. Retailers will need strategies for accessing gig-style labour, as well as platforms for employees: they may build or buy internal platforms and explore external aggregator platforms to find retail-trained workers in flexible time slots for more standardised roles such as replenishment and cashier. They will have to rethink the social contract with their workers to strike the right balance between flexibility and the benefits that come from colleague affiliation and progression.

Reports in the appendix demonstrate what we might expect from accelerated adoption of technology in retail in the future and how this will particularly impact productivity in different areas. Automation of many retail tasks will have significant benefit for the sector if adopted in the right way. Whilst the reports indicate the future impacts on the UK Retail economy, this will give us an indication of trends and patterns that we are likely to see in Jersey too.

8. Beyond Sustainability:

Regeneration: the idea of putting back more than we take from the planet s finite resources is not a new way of thinking but it is the zeitgeist for the economy that we should ignore at our peril. The future-ready retail environment should be reaching beyond the limitations of sustainability and responding to the climate crisis in a more urgent way, with resilient business practices that respond to this need directly.

9. Furthermore, our policymaking will seek to mimic global exemplars over the next 5-10 years, focusing on circular economic models. Some of these may include policy relating to the following areas: demonstration of provenance and anti-greenwashing, packaging regulations, repair, rent and reparable goods innovation funding, food waste and food loss, bio-diversity gains in re-fit and design.

If we imagine in the western world at least, we are now at Peak Stuff , a term coined

by IKEA s Chief Sustainability Officer Steve Howard to explain the over saturation of product available and consumed. For the sake of the planet s resources, there is a sound argument that the world does not need more stuff , instead we should focus on a future that aims, as Selfridges does in its Reselfridges campaign: for almost half its interactions with customers to be based on resale, repair, rental or refills by 2030. Indeed, according to the British Retail Consortium s manifesto, a third of every UK citizen s carbon footprint comes from the goods that they buy. Retail therefore has a vital role to play but it is for businesses to take the lead on decarbonisation and alternatives. Joining the Eco Active Network is a great way for businesses to access the help and support they will need

to achieve this. Of course, many retailers are reliant on their manufacturers, but it is important that the sector looks to solutions that will make real changes and innovate on this quickly.

10. The circular economy principles for the Island are already in progress and support from all sectors will be essential to the success of this movement. Here are the core principles that speak to Retail businesses and consumers directly:

Figure 12: Circular Economy - Core Principles

2

ce overall

1 Redu 3

USE

CIRCULAR

7 ECONOMY R 4

r

E

e

G g

n

N o l

O r L fo

USE ducts ro

p

Use

6 5

1 Reduce off-island imports 5 Products should be circulated at their highest value for as long as possible. Bring in policies that foster repair, sharing, resale, and remanufacturing to Move towards less products and high-quality  maximise asset use and return on invested energy

2

products that are long term assets

6

3. Reduce the use of unnecessary

single-use products

7

4. Design our infrastructure, buildings and

equipment to be flexible, future-proofed,

last as long as possible and minimise waste

Encourage sustainable practices such as deconstructing buildings to used materials again instead of demolishing

Products should be designed with materials and methods that enable them to be deconstructed, facilitating reuse and recycling. Encourage sale of products that can be easily repaired

11. We know that willingness, coupled with small, consistent interventions from both the consumer and the business community will start to shift the narrative and our impact on the planet. The retail sector already has the capability to innovate first and celebrate

the immediate difference.

12. Some stakeholders will need strong incentives or indeed sanctions to make unprecedented changes in this space at the pace it is required. There is in fact one area of historical contention that could be key to unlocking this element of change.

The States decision to introduce the Corporate Income Tax for large retailers at 20% was considered by some to have further unlevelled the business playing field. Whilst there was general agreement that on-island retail should contribute to the tax base, the equity of the tax was challenged is still challenged on three areas:

The disparity between this level of tax and that of other sectors.

Retailers with large wholesale divisions fall outside the scope of the tax.

Large online retailers importing to Jersey have captured a significant percentage of

the market from online retailers but are not liable to pay the tax.

For the future of the sector, does this also place a subconscious ceiling on those medium size retailers who have the potential to surpass their growth ambitions but do not want to slip into the 20% tax bracket?

13. GST registration requirement has been at £300k turnover since 2011 and stakeholders have also indicated that this may be inhibiting some smaller businesses from dramatically increasing their revenues. Jersey Business is already encouraging businesses to register and highlighting the advantages but there is a call to review

if the threshold turnover should reflect JRPI and be upwards of £500k to encourage more ambition and productivity.

Actions

Recommendation Meets opportunity Responsible Due date Measurement

27. Develop a productivity  Digital enablement  Jersey  Q2 2025 Jersey Business framework for the  and automation Business and  reporting. sector to enhance  Digital Jersey

both: knowledge

of enablers and

implementation

roadmaps

28. Look at skills gaps  Digitally Enable Digit Jerse  Q2 2025 Digital Jersey Reporting. for the sector and

a provision for

courses that respond

to these through

the appropriate

mechanism

29. Consideration in the  Regeneration Government  Q1 2025 Establish criteria with productivity support  - Economy  Jersey Business. scheme to criteria that  and Jersey

champions innovative  Business

and regenerative

practices

30. Pilot a carbon labelling  Innovation and  Government  Q1 2025 Pilot delivered with retail initiative to understand  Regeneration nd priv te  partner.

consumer response  sector

and education around

product origin and

carbon emissions

31. Support the SEE  Innovation Government BAU Successful SEE Pathways programme  businesses in the core with connections to  retail area.

landlords, agents

and the Town Team

to enable Social

Enterprise to thrive in

the retail environment

32. Review the retail tax Productive Government -  Q3 2025 Report conclusions Econom  on impact of the Tax for the sector and recommendations presented.
33. Local supply plan Regeneration  Government  Q3 2025 Plan for local supply and supply chain  and Jersey  and distribution resilience Product  opportunities published. Promotion

Limited

Conclusion and Recommendations

The Road Ahead

Success in the future transformation of the retail sector is not solely about increasing the number of shops. Instead, it focuses on a balanced approach to measuring vibrancy, community wellbeing, and customer satisfaction, aligned with Jersey s Island outcome indicators. Businesses are encouraged to reflect on these strategic goals internally, ensuring that their own strategies and operations are aligned with the wider ambitions outlined in this plan. By embracing the principles of vibrancy, customer-centricity, productivity, and regeneration, businesses can contribute meaningfully to the overall transformation of the sector.

We will provide an annual update on the progress of the roadmap, along with ad-hoc updates to key stakeholder groups as actions are taken. Responsibility for delivering each action lies with the relevant parties, who are also tasked with reporting on progress as appropriate. Businesses are urged to continually review their internal strategies to stay in step with the sector s broader objectives, ensuring they not only thrive individually but also contribute to the collective success of the retail landscape.

Below are the actions that are already in flight and the next most powerful actions to move us towards a future-fit retail environment for Jersey.

Figure 13: Actions already happening or delivered and the most powerful new actions

Appendix

How technology is disrupting the UK retail industry, McKinsey 2020

Impacts of technology could displace a third of retail tasks by 2030

Includes impacts of channel shift in the UK and likely task automation[13]

Lowest concentration Highest concentration

2017 retail  Tasks displaced through

Group of roles Representative UK retail occupations[14] employment, '000  technology by 20301, % Concentration of worker characteristics

Age  Age  Part-time  Secondary

below 25 over 55 contract ed. or less Stores Sales and retail assistants 965 -40

Managers and directors in retail and wholesale 257 -36

Retail cashiers and check -out operators 169 -46

Shelf fillers 102 -19

Supply chain and  Elementary storage occupations 179 -24

distribution

Van drivers 99 16

Packers, bottlers, canners and fillers 50 -32

Stock control clerks and assistants 44 -37

Proprietors and  Shopkeepers and proprietors 123 -22

home office roles

Sales-accounts and business development managers 92 -18

Book-keepers, payroll managers and wages clerks 51 -49

Marketing associate professionals 48 -7

Emerging  Programmers and software development professionals 14 19

technical roles IT and telecommunications professionals 10 2

Total -32

Technology will impact the store support centre through advanced analytics and systems

Projected impact of automation and advanced analytics by core merchandising activity

Light Moderate Significant

Category strategy Assortment Space planning

Product design and development Sourcing

Negotiation Merchandising planning Pricing and promotion

Inventory replenishment and markdowns Supplier management

Source: McKinsey retail practice, US example

Technology is a strategic imperative for UK retail, with the potential to re-shape the P&L

Example of UK Grocery P&L with gross savings from technology roll-out by 2030

Income

statement Gross saving

line Current[15] % ofrevenue from tech,[16] ppt Key drivers

Potential revenue upside not included but could come from Revenue [17] 100.0% personalized offers, dynamic pricing, omnichannel fulfilment[18] COGS[19] 70.0% 0.5–1.0% Reduction in inventory costs (shrink, markdowns) from

precision forecasting and omnichannel fulfilment

Freight 2.5% 0.0–0.5% Reduction in distribution costs from autonomous DC and

fleet solutions

Warehousing 1.0% 0.3% Automation of key warehousing processes

Store Labour 11.0% 1.5–3.0% Optimization of store labour required from automated front -

end, data-optimized replenishment, improved scheduling etc. Occupancy 5.0% 0.0–0.2% Optimization of real estate management

Marketing 0.5% 0% NA

Other (incl.  7.5% 0.5–1.0% Automation of merchant functions

SG&A) Tech-enabled business services

EBIT 2.5% 2.8–6.0%

Retailers need to think beyond technology, to the six essential elements of a reboot'

1 Run cross-functional steering group plus control tower' to manage planning across departments Create clear business case(s) and decide capital allocation

Map interdependencies and sequencing for tech roll-out, operating and labour model change Define KPIs across financials, consumer and employee satisfaction

1 Master

planning 2 Set transformation goals with dual focus on ambition and future consumer value proposition

(e.g., convenience, service levels, price investment)

Outline omnichannel fulfilment offering, by region

2 3 Build out design-led perspective on new, tech-enabled customer models

Consumer Operating 3 Define core enablers of the value proposition (labour and tech)

Value  model Create new SOPs for those working alongside technology

Proposition Agree locations for technology piloting and sequence roll-out

Scope how systems and analytics will enable flexible scheduling and productivity enhancements

4 5 Technology People

6 Community impact

6 Co-ordinate sector-wide response on future of work

Plan for mitigating community impact of decisions, e.g., redeployment of impacted workers Create re-hiring training plan for colleagues transitioning externally

Outline at-risk areas and create community-specific plans to address

Government of Jersey

[1] See Tax Statistical Digest on gov.je

[2] Statistics Jersey Household Spending Report

[3] Policy HT2 pg.117  

[4] Ibrahim Ibrahim: Future Ready Retail, published 2022

[5] https://bristolcitycentrebid.co.uk/about-the-bid/#what-is-a-bid

[6] https://www.placemanagement.org/research/25-vital-and-viable-priorities/

[7] Latest commercial vacancy rate as conducted by Jersey Business in March 2024, this was an increase on the previous

quarter of Q4 2023, where 8.9% was recorded.

[8] The Retail Group: Jersey Markets Strategic Review, July 2022

[9] Rural Economic Framework.pdf   pg.11, REF Public Consultation: Community Research Project 2020

[10] Micro Businesses are smaller than SME s and have fewer than 5 employees

[11] It is estimated over 500,000 SMEs in the UK have insufficient online presence or access. D Williams, Retail Insights

Network, 2020

[12] How technology is disrupting the UK retail industry| McKinsey 2020

[13] Tasks displaced through technology include likely (note: what is technically possible is higher) impacts of channel shift and task automation by 2030, midpoint adoption scenario (reflecting

likely adoption of technology relative to cost of workers)

[14] Represents the top sub-occupations in each group of roles

Source: ONS, Forrester, IGD, McKinsey Global Institute Analysis 2019

[15] Breakout of income statement line items based on typical grocery retailer benchmarks and interviews

[16] Excludes the impact of next-horizon ideas

[17] Potential revenue growth not considered for EBIT impact in this analysis;

[18] Multiple use cases have revenue growth impacts. Impacts from Frontline Store Worker of the Future and Omnichannel fulfilment considered redundant

[19] Multiple use cases that impact spoilage and markdowns. All use cases summed, and opportunity taken at 50% to avoid double counting of impact

Source: Expert interviews, Food Marketing Institute: "The Food Retailing Industry Speaks Report 2016"