Retail Policy - Ministerial Reponse - 19 August 2014

Findings

Comments

(ED unless otherwise specified)

1

Retail  remains  an  important  sector  of  the Jersey  economy,  accounting  for approximately  7%  of  the  total  GVA  and nearly  8,000  employment  positions. However,  the  value  and  volume  of  retail sales have notably declined since 2008 and there  are  signs  that  this  trend  is  likely  to continue,  particularly  with  regard  to  non- food products.

Agreed.

2

The overarching retail policy since 2006 has been  the  Retail  Framework,  which  has focused  predominantly  on  food  retailing, food  price  competition  and  supermarket operators. It was last updated in 2010.

The  prevailing  retail  policy  is  the  Retail Framework from 2010.

3

Although slow to react, since August 2013 the Minister for Economic Development has recognised and begun to act on the need to engage  with  retailers  to  develop  initiatives and  plans  to  help  address  the  downward economic  trends  and  challenges  associated with the on-Island retail sector.

It is not correct to suggest that the Minister for Economic Development has been slow to react. The investment in Jersey Business Ltd. to support SMEs, which make up a large portion of retail, is one  example.  However,  it  is  clear  that  greater engagement and co-ordination is necessary, hence the  Interim  Retail  Development  Plan  and development of a long-term Plan The delivery of the  Plan  for  the  Retail  Sector  needs  to  be  a genuine  partnership,  with  the  actions  jointly owned by the Government and the retail sector.

4

The Chief Executive of Jersey Business, who has played a significant role working with the Economic Development Department on the  development  of  the  draft  Retail Development  Plan,  is  leaving  the organisation. It is unclear if this will have an impact  on  any  of  the  draft  initiatives currently  proposed  to  involve  Jersey Business.

The fact that Jersey Business Limited are in the process of recruiting a new Chief Executive will not  impact  the  Retail  Development  Plan,  once launched in September 2014.

5

Doubts about the positive outcome of a free parking  trial  on  Saturdays  were  raised amongst  TTS,  EDD  and  the  Town  Team. The  approximate  cost  of  such  a  trial (£300,000)  has  since  been  earmarked  to assist alternative retail initiatives.

Agreed.

Findings

Comments

(ED unless otherwise specified)

6

The  Economic  Development  Department created avoidable confusion and delays to its own  and  the  Panel's  work  in  relation  to retail,  by  developing  the  draft  Retail Development Plan with inadequate inclusion of  and  communication  with  other stakeholders, and failing to notify the Panel of  the  ongoing  work  despite  procedural requirements to do so.

A draft version of the Retail Development Plan was  distributed  to  some  stakeholders  for comment.  Unfortunately  it  was  not  made  clear enough  that  the  version  sent  was  a  draft  for comment and not wider distribution.

7

Despite  the  highly  promising  purpose  and membership of the Town Team, its future is uncertain.  There  are  proposals  from  the Economic Development Department for the Town  Team  to  be  incorporated  within  or perhaps  even  replaced  by  a  new  Retail Jersey'  brand  via  the  Retail  Development Plan.

Whatever  the  group  is  ultimately  called,  its purpose and membership is established and the good work it has begun will continue.

8

Online  competition  represents  the  most significant challenge to Jersey's high street' retailers.

Agreed. Competition from the Internet is the most significant,  although  not  only,  challenge  for Jersey's high street.

9

Online retailers are notably more appealing than  traditional  bricks  and  mortar  retailers around  the  issues  of  price  and  shopper convenience.

Agreed.  It  is  also  important  to  recognise  the greater choice of products and indeed retailers as a significant online product plus'.

10

It is estimated that 35,350 (85% of the total) Jersey  households  are  purchasing  products and  services  online,  with  the  total  online spend in 2013 amounting to £258 million.

These  figures  are  taken  from  market  research undertaken by Island Analysis. The figures are, however,  disputed  by  elements  of  the  Jersey infrastructure' servicing online retail.

11

The average annual online household spend in Jersey in 2013 was just over £7,000.

See 10 above.

12

Research  demonstrates  that  mobile  tablets and, particularly, smart-phone devices, have become increasingly important as a means of purchasing products and services online. The trend in 24/7' purchasing culture is expected to continue to develop as mobile technology increasingly  facilitates  anytime-anywhere shopping.

Agreed.

13

82%  of  respondents  to  a  shopping  habits survey  said  they  would  welcome  the opportunity to spend more money with local retailers  if  only  they  had  suitable  e- commerce websites. In general, however, the online  sales  platform  and  marketing/social media  presence  of  local  retailers  has  not

Agreed.

Findings

Comments

(ED unless otherwise specified)

adequately developed to meet the challenge of off-Island online retailers, although some creditable  and  co-ordinated  platforms  have begun to emerge.

14

Jersey's high street retailers can continue to aspire to a positive future, but to help achieve this must harness the opportunities provided by ever improving technology.

Agreed.

15

The Minister for Economic Development is broadly supportive of the general concept of the  Jersey  Chamber  of  Commerce's Jamazon'  initiative,  but  is  not  convinced that  it  represents  the  best  value  or  most suitable  option  to  deliver  the  desired outcome for the Island's retailers.

Agreed.

16

Retailers in Jersey will need to continue to develop  multi-channel'  retailing  models combining  bricks  and  mortar,  online sales/booking, click and collect and/or home delivery.

Agreed. Retailers will need to adapt their business models to suit modern demands.

17

Jersey's  many  small  retailers  may  require significant  co-ordination  and  some government  assistance  to  overcome  the challenges of scale and cost in developing multi-channel' retailing models.

Agreed. Expansion of choice is also an important consideration.

18

Face-to-face  customer  service  is  widely regarded as one of the opportunities for high street' retailers to gain advantage over online competition.  However,  the  quality  of customer service in Jersey has been found to be  highly  variable.  Retail  owners  and managers  are  ultimately  responsible  for improving this situation, but can be assisted by government.

Agreed. Customer service workshops have been held, with more planned. Mystery shopping will be used to measure impact.

19

In  general,  Jersey  retailers  have  not  fully reacted to changing customer habits and are potentially restricting shopping opportunities through  outdated  9 to 5'  opening  hours. Later closing times on a more regular basis have  been  identified  as  being  attractive  to shoppers.

Agreed.

Findings

Comments

(ED unless otherwise specified)

20

Sunday trading remains a contentious matter. Opinion  on  the  Minister  for  Economic Development's Sunday trading trial has been split,  with  54%  of  respondents  to  the associated White Paper not in favour of the trial.

It is not disputed that Sunday trading in Jersey is a contentious  issue;  however,  the  Chamber  of Commerce  consultation  to  its  members  was  in favour of further deregulation, which is one of the reasons  the  Minister  for  ED,  in  his  role  as business champion' concluded there should be a debate on the matter.

21

It is not clear whether current Sunday trading restrictions are a significant barrier to retail in  Jersey.  Very  few  retailers  are  currently restricted from opening on Sundays.

Sunday trading in the centre of town will require a critical mass if it is ever to be successful. Very few  retailers  are  prevented  from  opening currently, but it is the larger, anchor' stores that cannot open and the lack of that footfall is thought to  be  critical.  When  considering  retail  in  other jurisdictions, those with the most liberal opening hours  have  the  most  robust  retail  sectors. However, the States have now decided that a more liberal Sunday Trading Law is not in the Island's best interests.

22

Relaxation  of  Sunday  trading  restrictions appears  to  be  of  more  obvious  potential economic  benefit  to  certain  out-of-town retailers,  such  as  garden  centres,  than retailers in town.

See 21 above.

23

Amending current weekday/Saturday trading hours would appear to be a greater priority than  changes  to  Sunday  trading.  It  could provide greater positive consequences for a larger  number  of  retailers  and  consumers than a Sunday trading trial with significantly less contention.

Agreed.

24

At  the  end  of  the  Minister  for  Economic Development's proposed liberalisation' trial of Sunday trading legislation, although the legislative  position  would  revert  to  the current situation restricting those with a sales area of more than 700m², there is concern that it would be difficult culturally to turn the clock back'.

Had  the  trial  been  adopted  by  the  States Assembly,  the  Law  would  have  automatically reverted back, and business practice with it. It was made abundantly clear that the trial would only have been able to become permanent by a further decision of the States Assembly.

25

Certain  negative  impacts  that  might  result from the proposed Sunday trading trial, such as small business closures due to increased competition  from  larger  retailers,  could  be irreversible.

There was no evidence to suggest that there would be negative impacts from a trial liberalisation of Sunday trading.

Findings

Comments

(ED unless otherwise specified)

26

Local  retailers  are  effectively  forced  to compete on an uneven playing field with off- Island/online retailers, due to the application of 5% GST on the price of locally sold goods and  the  existence  of  the  £240  de minimis level under which imported goods attract no GST.

Minister for T&R:

"Bricks  and  mortar"  retailers  are  in  a  different position  to  online  retailers  for  a  number  of reasons, only one of which is the GST treatment. The  Minister  for  T&R  agrees  that  no  GST  is charged on goods imported below £240.

27

Potential GST revenue is being missed out on by the Treasury, and increasingly so, with the  growing  trend  in  off-Island,  online shopping.

Minister for T&R:

The Minister for T&R agrees that the existence of the GST de minimis limit at £12 of tax means that some GST revenue is foregone on imported goods costing less than £240. This was recognised by the States  Assembly  in  2008  when  it  debated  and agreed  the  de minimis  limit.  In  the  debate,  the States  sought  to  balance  the  GST  revenue foregone with the need for Customs clearance of low-value items that are imported in high volumes and are likely to overwhelm any control system.

As a result of research undertaken by the Customs and Immigration Service, based on 2012 data, it is estimated  that  if  the  de minimis  limit  was removed,  then  the  potential  extra  import  GST revenue would be £783,000 per annum.

The Minister for T&R has agreed to review the appropriateness  of the  current £12  limit  and to report back by the end of 2014.

28

Reducing or removing the de minimis level would not be straightforward. For instance, although  it  is  estimated  that  its  removal would achieve an increase in GST collection of  approximately  £800,000;  at  Jersey  Post alone it would necessitate at least an extra 241,000  consignments  (averaging  660  per day)  requiring  customs  clearance  per  year. This would represent an increase in workload of approximately 28%, which would require funding.

Minister for T&R:

The  process  for  reducing  or  removing  the de minimis  level  is  not  difficult  in  itself.  The repercussions of such a decision, however, could be significant.

This has already been seen following the increase in the GST rate from 3% to 5% in June 2011. As a result of the change, the value of goods that could be brought into the Island before GST became due fell from £400 to the current level of £240.

In  2011,  approximately  897,000  consignments were brought into the Island by freight companies. The  value  of  each  of  these  consignments  were declared,  as  required,  on  a  Customs  manifest. (These  figures  do  not  take  into  account  any parcels imported at the Post Office through Parcel Force or any of the Royal Mail First and Second Class bulk mail which is not manifested. Under the World Customs Organisation rules there is no requirement to manifest postal traffic, though that

Findings

Comments

(ED unless otherwise specified)

may change in the next few years. As a result, officers have to attend the Post Office on a daily basis to physically check these parcels and detain those that require payment of GST.)

Between 1st January and 31st May 2011, when the GST rate was 3%, the value of goods that could be imported without payment of GST was £400. Officers in the Customs and Immigration Service processed 26,500 declarations during that period. Following the increase in the GST rate on 1st  June  2011  to  5%,  and  the  consequent reduction in the value of consignments that could benefit from the de minimis limit to £240, more consignments  had  to  be  declared.  Between  1st June  and  31st  December  2011,  the  number  of declarations processed by officers in the Customs and Immigration Service increased to 53,500. The number of declarations, therefore, increased from 5,300  per  month  to  7,600,  an  increase  of approximately 43%. It should be noted that the extra workload to process these declarations had an  impact  on  officers'  capability  to  undertake other proactive customs/immigration enforcement. Any further decreases in the de minimis limit will have a further negative impact on the Customs and  Immigration  Service's  enforcement capability.

To give a better perspective regarding increased workloads and the impact a further decrease in the de minimis limit would have on the Customs and Immigration  Service,  officers  have  previously provided  information  on  2012  manifest consignment  data.  In  2012  there  were approximately 862,000 consignments manifested into the  Island. (Again,  this  does  not  take  into account ParcelForce/First/Second Class bulk mail which  is  not  manifested.)  With  the  de minimis limit at its current level, 241,000 (28%) of those consignments  fell  below  the  limit  and  did  not require customs clearance. If the de minimis limit were to  be  removed,  all of  these  consignments would  require  formal  customs  clearance.  It  is estimated  that  this  would  result  in  an  extra £783,000 of GST being collected.

If the de minimis limit was reduced to £6 (£120 in value terms), then an extra 33,500 consignments would require formal customs clearance, and it is estimated that an extra £340,000 of GST would be collected. If the de minimis limit was reduced to

Findings

Comments

(ED unless otherwise specified)

£9  (£180  in  value  terms),  then  an  extra 11,500 consignments  would  require  formal customs clearance. It is estimated that an extra £156,000 of GST would be collected.

This  reflects  the  impact  from  a  customs perspective. The Panel might be interested to note that, prior to the introduction of GST in 2008, a review of the de minimis limit was undertaken by Crown Agents. Jersey Post and the Fast Courier Service  operators  were  consulted.  The  view  of both was that the lower the de minimis limit, the greater  the resource  implications  for them.  The resources to which they referred were not merely in terms of staff to administer the notification of the  detention  of  parcels,  but  also  the  issue  of warehouse  space.  If  a  large  proportion  of  the parcels imported every day were subject to GST, then many of them would have to be stored whilst the importer is notified and the tax collected. With limited  warehouse  space,  the  companies concerned indicated that such a proposition would be difficult for them to accommodate.

29

Amending the de minimis rules with a view to the States forming agreements with off- Island online retailers to collect GST on its behalf for sales to Jersey-based customers, has been raised as an idea to help level the playing field'. Nevertheless, such a solution holds challenges and potentially significant, if unintended, negative consequences.

Minister for T&R

There are 2 issues here: firstly, the question of the level at which the GST de minimis limit is set. A reduction in the de minimis limit would mean that Jersey residents would be charged GST on more of the products that they buy online, as tax would be due on packages costing less than the current limit of £240.

The second issue is whether the States could form agreements with off-Island online retailers such that they would voluntarily agree to collect GST on the products they sell to Jersey residents.

Both  of  these  need  to  be  considered  carefully. They both have the potential to increase the cost to Jersey residents of buying online, potentially removing some – though not necessarily all – of the price disparity between products sold in Jersey and online. It is important to consider the impact of this on Islanders, as well as on local retailers. They also carry the potential to increase the cost of  administering  the  system  for  the  States  and freight companies, in the first case, and for online retailers in the second case.

It must also be recognised that the likelihood of any off-Island online retailer voluntarily agreeing to  the  collection  of  Jersey  import  GST  is

Findings

Comments

(ED unless otherwise specified)

extremely remote. It is worth reiterating that the UK retailer which charges Jersey GST on its sales here does so because the GST Law obliges it to do so  by  virtue  of  the  way  in  which  it  sells  its products.  In  that  case,  the  goods  remain  the property of the seller until after they have reached the  customer.  This  means  that  the  supply  is considered to be made in Jersey, and therefore the retailer is liable to register for GST. Most other retailers  operate  on  the  basis  that  the  goods become the property of the customer at the point at which they are paid for, i.e. before they have been  despatched.  In  that  case,  the  goods  are supplied  from  outside  Jersey  and  therefore  the supplier is not required to charge GST.

The Minister for T&R recognises the complexity of the issues involved, and has agreed to review them and to report back by the end of 2014.

Minister for ED

The Minister for ED will engage fully with the proposed review.

30

It  is  widely  agreed  that  the  Retail  sector would  benefit  from  the  attention  provided and  generated  by  an  appropriate  Retail Champion'. To carry the required authority and  ability  to  influence  on  retail-related matters within the States, it was identified that  the  Retail  Champion'  should  be  a sitting politician.

The Minister for Economic Development is the champion' for retail within the States Assembly. It is felt that dedicated resource to support the sector is required.

31

The Retail Champion' should be supported with suitable executive support on a day-to- day basis. This role would include much of the retail-related work currently undertaken within  the  Economic  Development Department,  and additional  work  emerging from initiatives such as the proposed activity and co-ordination around an events calendar (see  also 7.8.2).  Regular  liaison  through  a comprehensive  stakeholder  group,  such  as the current Town Team, remains important.

Agreed. See 30 above.

32

Within  the  draft  Retail  Development  Plan, the Minister for Economic Development is considering  the  establishment  of  a  Jersey Retail' brand within Jersey Business, through which support to the retail sector could be delivered. The merits of such a structure are not apparent to the Panel.

Jersey  Business  Limited  (JBL)  is  the  support service  for  all  businesses  in  Jersey.  Having  an expert dedicated to retail within JBL is only one possibility  under  consideration  for  the  Retail Development  Plan,  which  is  to  be  formally launched in September 2014.

Findings

Comments

(ED unless otherwise specified)

33

Building on current practice, there is wide support  for  increased  retail  activity  to  be undertaken linking directly into a range of current  and  potentially  new  events  and/or themed days. It has been widely agreed that this  should  be  actively  co-ordinated,  with necessary scheduling and focus provided by a dedicated events calendar for retailers.

Agreed. There should be greater co-ordination of events generally to allow retailers to engage with tourism events. This will be a key focus of the Retail  Development  Plan  and  the  associated support.

34

It is not unusual for event organisers to be required to complete significant processes in order to obtain permissions to hold events. The requirements do not always appear to be in  proportion  to  the  size  or  nature  of  the event.

Many  of  the  processes  are  outside  of  EDD's control and stem from a variety of legislation. Part of  the  purpose  of  the  long-term  Retail Development Plan will be to examine the barriers and  streamline  the  processes  to  enable  greater creativity.

35

There  can  be  restricted  access  for  events during the year in some of the more suitable and attractive sites.

Agreed.

36

Although visually attractive and creating an often improved atmosphere, it is difficult to strike  the  right  balance  between pedestrianisation and the needs of retailers to service  premises.  Pedestrian  priority initiatives, already seen in some parts of the Island,  appear  to  provide  an  appropriate compromise.

P&E/TTS

37

Maximising the physical attraction and the ease of moving through town were identified as important means of encouraging people to choose to shop in town. However, inadequate pavements and clumsily placed bollards and street  furniture  were  cited  as  examples  of existing  physical  barriers  that  negatively impact on the ability of people to enjoy the experience of shopping in town.

TTS

38

The covered markets should be a jewel in the crown' of Jersey's retail sector, acting to stimulate  footfall  in  town  and  attracting shoppers to a vibrant retail core. Presently however, whilst architecturally attractive, the markets fail to live up to such expectations, and radical change has been widely called for to  improve  on  the  tired  atmosphere  and generally underwhelming offerings.

Minister for T&R

Jersey  Property  Holdings  have  instigated  a number of projects to improve the ambience and condition of the markets.

Following the successful re-roofing of the Central Market, a major renewal of the Fish Market roof will commence in autumn 2014. This will include the introduction of greater natural light, as well as improvements to modern electric lighting and a full redecoration. This is coupled to a series of other works, detailed below.

Findings

Comments

(ED unless otherwise specified)

Roof Refurbishment Fish Market:

This is a major project to entirely re-roof the Fish Market,  including  redecoration,  significant increase of natural light, new electrics and alarm systems,  automatic/manual  venting,  new  and improved lighting. Planning consent received.

Status of project:

1. Detailed survey of roof completed, which has identified  additional  issues  with  structure. Remedial  works  being  incorporated  into tender documentation.

2. All  drawings  and  tender  documents  to  be completed and issued for tender by end July 2014.

3. Tenders to be returned by the end of August 2014.

4. Work is scheduled to start on the site at the end of September 2014.

Additional Works Fish Market:

1. Cleaning of granite arches completed.

2. Redecoration  of  Minden  Street  masonry around entrance completed.

3. New signage agreed with Planning subject to final confirmation in autumn 2014.

4. Redecoration of metal work in autumn 2014.
5. Removal of superfluous fittings completed.

6. Refreshing  of  paintwork  to  lighten  market completed.

Future Works:

1. Floors to both markets to be renewed.

2. Fountain  to  be  fully  refurbished,  including water  features,  redecoration  and  lighting (early 2015).

3. Upgrade to lavatory facilities.

4. Wind barrier to Halkett Place to be devised and installed (early 2015).

Development Proposals:

The  Fish  Market  also  has  the  potential  to  be reconfigured and expanded.

An initial concept considering opening up the Fish Market  into  Cattle  Street  Car  Park  has  been proposed.

Findings

Comments

(ED unless otherwise specified)

This would create the opportunity to reconfigure the retail and restaurant area, create seating areas, alfresco and open space.

The open areas could be available, not only for alfresco  eating,  but  also  for  entertainment  and cultural events, and for temporary markets which, coupled  to  a  pedestrianisation  of  Cattle  Street, would be a significant regeneration opportunity.

These are at an early stage of development, but have received a positive response from the Jersey Public Markets Tenants' Association.

Notice  has  been  served  on  Jersey  Telecom  to terminate their licence on the Cattle Street Car Park to facilitate this proposal. Two years' notice was required to secure vacant possession.

Advancing  the  proposal  will  be  dependent  on funding availability.

Tenant Redecoration:

It was recognised that certain tenants have fallen behind in respect of the redecoration of their units, and a requirement of the grant of the new lease is to remedy that fact.

The  new  leases  have  a  redecoration  clause  to ensure tenants bring units to the required standard within 6 months of the completion of the lease. See below:

6.3  Repair and Decoration

(a)  Unless otherwise agreed by the Lessor in writing the Lessee shall be obliged to redecorate the exterior and any visible interior of the Unit within six months of the  Completion  Date  in  a  proper  and workmanlike  manner  in  colours previously agreed with the Lessor and to the Lessor's reasonable satisfaction.

Tenant Mix and Use

It  is  important  that  a  suitable  tenant  mix  is managed in any retail environment.

The markets are predominantly food-focused.

The new leases will have specific user clauses to assist control on tenant mix and offer. See below:

6.21 To use the Unit only for the Permitted Use and  not  for  any  other  purpose  without  the express written consent of the Lessor such consent shall not be unreasonably withheld

Findings

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(ED unless otherwise specified)

having regard to the Lessor's duty to act in the  best  interests  of  the  Property  those conducting business from the Property and general public making use of it.

39

Although  there  have  been  recent  moves towards the creation of a traders' association, there  has  been  a  lack  of  cohesion  and collaboration  amongst  the  covered  market traders that has been a barrier to progress in the markets.

Minister for T&R:

The Jersey  Public  Markets  Tenants  Association (JPMTA)  has  been formed,  and  the  Committee meet monthly with JPH to discuss market matters, including – the now agreed lease renewals, current and future works, marketing matters, as well as general  operating  issues.  The  group  will  also provide  input  to  general  retailing  matters  in St. Helier  and  the  Island  as  required.  Other relevant stakeholders will be invited to attend as appropriate. All market tenants are required to be members.

It  has  been  proposed  that  the  JPMTA  be represented on the St. Helier Town Team' group to be a voice for the market traders in both the Central and Fish Markets.

40

Issues regarding parking featured in almost all submissions received by the Panel during the Review. Parking matters present a very real  challenge  to  retailers,  but  there  are workable initiatives that could help improve the situation.

Agreed.  Parking  matters  will  form  part  of  the long-term  Retail  Development  Plan,  where  a whole of government' approach is essential.

41

Overall capacity amongst town's car parks is adequate  to  accommodate  demand  from commuters and shoppers, but the geographic distribution of spaces is not. The  north of town  is  under-served  by  the  current  car parking provision, and Pier Road car park is too frequently under-capacity.

TTS

42

Minden Place is a vital shopper car park, but, as  with  others,  it  is  outdated  and  requires significant refurbishment, modernisation, or complete replacement.

TTS

43

There continues to be significant frustration with  the  scratch-card  system,  whilst  the automatic number plate recognition system in Sand Street has been widely welcomed.

TTS

44

There is wide acknowledgement and support for more bus services to be provided to help people  access  town  at  points  other  than Liberation Station, along with a service that

TTS

Findings

Comments

(ED unless otherwise specified)

would  link  urban  areas  whilst  penetrating towards  the  town  centre.  The  latter  could encourage more shoppers to visit town and other  retail  areas  such  as  Les  Quennevais Parade.

45

There is some confusion over the status and continued  relevance  of  existing  planning strategies  for  town,  notably  the  North  of St. Helier Master Plan.

P&E

46

The  current  withdrawal  of  proposals  for development  around  Bath  Street  by  Le Masurier's has been a significant setback for retail regeneration opportunities in that area.

P&E

47

The town footprint and retail core is shifting south-westerly  with  the  influence  of  the developing  waterfront  area.  Additionally, there are indications that the town retail core could contract due to the challenging trading conditions,  to  be  increasingly  anchored  by King Street and Queen Street.

P&E

48

Despite  certain  improvements  in  Planning application  processes,  retailers  continue  to face  challenges  relating  to  change  of  use policies.  The  challenges  can disproportionately  affect  small  businesses and retailers with small premises. The time taken  to  gain  relevant  permissions  and compliance  with  bye-laws  such  as  those relating  to  the  provision  of  toilet  facilities were  identified  as  being  particularly challenging. Due to the impact of the shifting town  footprint  in  increasing  the  number change of use applications, such occurrences may become more frequent.

P&E

49

King Street and Queen Street have retained almost  unparalleled  full  occupancy  levels over  recent  years,  despite  the  challenging retail environment.

Agreed.

50

Rents have not been identified as currently being  a  leading  challenge  to  retailing  in Jersey. It appears that a number of landlords recognise the challenging retail environment, generally leading to rents being established at  levels  that  have  not  deterred  tenancies being taken.

Agreed.

Findings

Comments

(ED unless otherwise specified)

51

Whilst King Street and Queen Street have retained robust occupancy levels, there have been  instances  of  short-  and,  more significantly,  long-term  unoccupied  shops outside of the retail core. There is currently no  States  policy  designed  to  help  address such detrimental occurrences.

See the Response of the Minister for Planning and Environment (S.R.6/2014 Res.), presented to the States on 25th July 2014.

52

Retail, tourist, traffic and general information signage  is  too  often  underwhelming, inconsistent and outdated. This is a matter that  requires  the  co-operation  and  co- ordination of a number of stakeholder groups to  improve,  including  retailers  themselves and authorities such as Jersey Tourism (ED), other  relevant  States  Departments  and  the Parish of St. Helier .

Agreed. Greater co-ordination between all parties to  develop  and  agree  a  signage  master  plan  is required. The retail champion' will co-ordinate this work.

53

Increased use of flags and banners has been identified  as  a  relatively  quick  and inexpensive  means  of  refreshing  and animating  retail  areas,  although  concerns were raised about the possible nature of the associated planning process, including by the Minister for Planning and Environment.

P&E

54

Despite related reviews, there are no clear signs  that  the  challenges  of  avoidable government  bureaucracy  is  easing.  This challenge to retailers is amplified by the fact that  the  majority  of  retailers  are  small businesses, often owner-run and often with a workforce of below five.

Disagree.

55

The  continued  presence  of  undue government bureaucracy can in no small part be attributed to a lack of co-ordinated cross- departmental  working  within  the  States. Whilst reform has been slow, there are some positive  signs  emerging  in  the  form  of initiatives such as tell us once' and unique user IDs' that are intended to reduce such avoidable over-bureaucracy.

Agreed.

Recommendations

To

Accept/ Reject

Comments

Target date of action/ completion

1

The  Minister  for  Economic Development  must  not underestimate the challenges faced by the retail sector and should,  as  a  priority, continue  to  engage  with retailers  in  a  structured manner.

ED

Accept

The challenges faced by the retail sector  in  Jersey  are  not underestimated by the Minister for Economic Development.

The Minister thanks the Panel for recognising  that  the  Economic Development  Department  are engaging  with  the  sector  in  a structured manner.

Ongoing

2

Working  with  the stakeholders,  the  Minister for  Economic  Development should  progress  initiatives and plans to help address the challenges  associated  with the  on-Island  retail  sector, and  develop  a  new,  more relevant and comprehensive overarching Retail Strategy.

ED

Accept

The  Retail  Development  Plan, developed  in  conjunction  with Jersey  Business  Limited  and  the Chamber  of  Commerce,  will  be published in September 2014. The Retail Development Plan focusses on  short-term  tactical  activity  in order  to  stimulate  local  retail spending by Jersey consumers.

A longer term Retail Development Plan  will  be  developed  and presented to the States Assembly. The Plan will take into account the findings and recommendations of the  Economic  Affairs  Scrutiny Panel's Review of Retail Policy.

September 2014

March 2015

3

The  Minister  for  Economic Development  should  work with retail representatives to identify the most appropriate way to assist the retail sector to  embrace  technology. Support  might  include  the funding of a feasibility study into  an  appropriate,  co- ordinated  online  sales platform,  and  the  provision of  appropriate  training opportunities  and  shared practice workshops.

ED

Accept

Assistance  for  retailers  in embracing  technology  will  be covered  in  both  the  Interim  and longer  term  Retail  Development Plans.  Assistance  and  support  is also  provided  directly  by organisations  such  as  Digital Jersey  and  Jersey  Business Limited.

Ongoing

Recommendations

To

Accept/ Reject

Comments

Target date of action/ completion

4

The  Minister  for  Economic Development  should  work with  relevant  Ministerial colleagues,  and  potential private  sector  providers,  to put  in  place  and  promote suitable learning and training opportunities for retailers in areas  such  as  high  quality customer service.

ED

(SS/ ESC)

Accept

Ongoing

5

The  Minister  for  Economic Development should extend the  one-off  2013  Mystery Shopper  customer experience  audit  into  an annual  piece  of  research. This  will  help  inform  the need  for  and  nature  of relevant  future  training initiatives.

ED

Accept

This forms part of both the Interim and  longer  term  Retail Development Plans.

September 2014

6

The  Minister  for  Economic Development should seek to co-ordinate  an  agreement amongst retailers to be more flexible in their approach to opening hours where benefit can  be  accrued.  Particular attention  might  focus  on later closing times on a more regular basis, and, in a more targeted  fashion,  achieving more  flexibility  in  opening hours  during  peak  summer tourist season and events.

ED

Accept

This forms part of both the Interim and  longer  term  Retail Development Plans.

September 2014

7

If  the  States  approve  the proposed  18 month  trial  of liberalised  Sunday  trading, the  Minister  for  Economic Development must ensure a robust  process  for monitoring and recording of all  associated  aspects (including  economic, employees'  welfare,  social and cultural impacts).

ED

Accept

Had the trial been approved by the States, there were robust processes in place to monitor and record all impacts.

Recommendations

To

Accept/ Reject

Comments

Target date of action/ completion

8

Specific attention should be paid  by  the  Minister  for Economic  Development  to mitigate the potential loss of small  businesses  due  to increased  competition  from larger  retailers  during  any trial  period  of  Sunday trading.

ED

Accept

Careful consideration of all factors was  taken  into  account  before proposing  a  trial  deregulation  of Sunday trading.

9

In order to inform possible strategies to alleviate undue negative  impacts  of  the uneven  playing  field associated  with  the de minimis  level,  the Minister  for  Treasury  and Resources  is  recommended to  undertake  the  following studies –

an  immediate  (and subsequently  on  an ongoing basis) review of the de minimis provision, to ensure that it is set at the  lowest  appropriate rate;

a  feasibility  study  of entering agreements with off-Island online retailers for the collection of GST relating to sales to Jersey- based customers.

T&R

Accept

Both  recommendations  are accepted  by  the  Minister  for Treasury and Resources.

Treasury  and  Resources  officers will  carry  out  a  review  of  the import GST de minimis limit and conduct  a  feasibility  study regarding  entering  into agreements with off-Island online retailers to charge GST on sales to Jersey residents.

Both the review and the feasibility study  will  be  led  by  the  Tax Policy Unit, with the assistance of the Taxes Office and the Customs and Immigration Service.

Both the review and feasibility study to be completed by the end of 2014, with any changes to be implemented in 2015

10

To provide suitable focus to the role Retail Champion', the  Minister  for  Economic Development  should  either more  actively  assume responsibility for promoting economic  development within  the  retail  sector,  or formally delegate the role to an  Assistant  Minister.  If delegating,  this  should  be clearly  reflected  within  the title  of  the  Assistant Minister.

ED

Accept

The  Minister  for  Economic Development is the champion for the retail sector within the States Assembly.  This  reflects  the importance of the sector to Island life and the economy.

Recommendations

To

Accept/ Reject

Comments

Target date of action/ completion

11

The  executive  support  for the  Retail  Champion' should  be  provided  by  the Economic  Development Department,  with  industry input  continuing  to  be sought  through  a comprehensive  stakeholder group,  such  as  the  current Town  Team,  or  an equivalent body.

ED

Accept

The  Interim  Retail  Development Plan  will  fully  outline  the  plans for executive support.

September 2014

12

The Economic Development Department  should undertake  the  active  co- ordination and promotion of an event calendar linked to retail  initiatives  in conjunction  with  all  the necessary stakeholders.

ED

Accept

Work is already underway as part of the development of the Interim RDP with the aim of establishing a full calendar of retail initiatives for 2015.

13

The  Minister  for  Economic Development  (or  delegated Retail  Champion'),  should examine  the  current processes  related  to  event permissions and identify any work  that  might  be undertaken  or  support  that can  provided  to  reduce avoidable  barriers  to  such initiatives.  Similarly,  any restrictions  to  the  use  of event-friendly sites, such as the Royal Square, should be identified  and  addressed where appropriate.

ED

Accept

The  executive  Retail  Champion will be tasked with undertaking a review and composing a plan to reduce and streamline red tape.

December 2014

Recommendations

To

Accept/ Reject

Comments

Target date of action/ completion

14

Pedestrian priority initiatives should  continue  to  be implemented,  and  a feasibility  study  of  such  a scheme  in  Halkett  Place from Amyson Corner along the  length  of  the  Central Market  should  be  co- ordinated as a priority by the Minister  for  Transport  and Technical  Services,  with input from the Town Team or equivalent comprehensive stakeholder organisation.

TTS

15

Through the Town Team or equivalent  body,  the Minister  for  Economic Development  should  co- ordinate  a  plan  to  identify and  implement  relevant improvements  to  the physical  town  environment, including  removal  of physical  barriers'  that negatively  impact  on  the ability of people to circulate easily through town.

ED

Accept

The  executive  Retail  Champion will  co-ordinate  this  project, involving TTS and POSH.

16

A  clear  strategy  should  be developed  by  the  Minister for Treasury and Resources (the Landlord) regarding the covered  Markets.  This should  be  informed  by consultation with all relevant stakeholders  on  the  wide range  of  initiatives  and views  held,  and  include assessment of a fundamental overhaul  of  the  interior layouts  and  retail  offering. Changes  must  also  be considered  to  outdated opening hours.

T&R

The creation of the Jersey Public Markets Tenants Association has enabled  a  greater  collaboration with JPH.

Monthly  meetings  and  other communication  as  necessary  in between, have initially focused on the renewal of the leases and the major  refurbishment  of  the  Fish Market roof, which is planned for the autumn of 2014.

As  part  of  these  discussions,  it was recognised that there is a need to ensure that any future change which is desired and deemed both necessary and appropriate can be effected.

This  has  led  to  extensive negotiation  in  respect  of  a

Recommendations

To

Accept/ Reject

Comments

Target date of action/ completion

necessary ability for the landlord to be able to break the leases.

Clearly the tenants need to have a level  of  security  and  input  into ensuring  that  the  operation  of  a break clause suitably protects and compensates  them  should  the clause be used.

It also needs to provide a detailed timetable  to  minimise  business interruption.

The  new  lease  contains  both Landlord  and  Tenant  Breaks  to facilitate  change  and reconfiguration.  See  clauses shown below:

Recommendations

To

Accept/ Reject

Comments

Target date of action/ completion

17

The  Minister  for  Treasury and  Resources  (the Landlord) should explore the immediate  revision  of outdated  opening  hours within the markets to better reflect  customer expectations  relating  to  the both  the  overall  and individual  retail  offerings. Thursday  afternoon  closing should  be  removed  as  a priority.

T&R

JPH and the JPMTA have agreed to a minimum keep open clause in the new leases.

Attached are the extracts from the lease which provide for minimum keep opening hours and the ability for these to be varied:

31. To  comply  with  the provisions  of  the  Markets Regulations  (and/or  such other  Regulations  as  may from  time  to  time  be enacted or stipulated by the Lessor) and  keep the  Unit open for business during the hours  that  the  Property  is open to the Public or during such other hours as may be determined by the Lessor or its  duly  authorised  agent from  time  to  time  and which for the avoidance of doubt are to be a minimum of 6 hours per day Monday to Saturday inclusive.

32. To  comply  at  all  times during  the  term  of  this Lease  with  all  and  any instructions  issued  by  the Inspector  of  Markets pursuant  to  the  Markets Regulations.

Recommendations

To

Accept/ Reject

Comments

Target date of action/ completion

There are no significant barriers to opening on a Thursday afternoon or having later weekday opening.

Clearly the issues would focus on practical,  logistical  and subsequent  financial/  cost implications.

Whilst, in agreement with traders, the markets could be open longer, there  is  a  significant  practical issue in that a number of the stalls are not secure, which could cause management and security issues if those were not open.

There  is  reluctance  from  some traders  who  run  their  own businesses to work longer hours, due to the need to either do the hours themselves or employ extra staff with the attendant cost and reliability  or  availability  of employees.

Dialogue  will  continue  with  the JPMTA  to  consider  what represents  the  most  appropriate opening  times  and  how  the practical difficulties set out above can best be addressed.

18

The  Minister  for  Transport and  Technical  Services should  undertake  the necessary  work  with colleagues  and  other stakeholders  to  achieve  the following:

A  clear  decision  on  the future  provision  of  north of town car parking.

The roll-out of automatic number  plate  recognition systems (or similar) in all covered car parks to end the  predominance  of scratch-cards.

A fully developed strategy for  the  phased

TTS

(with P&E/ T&R)

Recommendations

To

Accept/ Reject

Comments

Target date of action/ completion

modernisation  and refurbishment  of  all  car parks.

A review of all initiatives, including  charging structures,  that  might encourage  a  more appropriate distribution of commuter  and  shopper parking.

19

The  Minister  for  Transport and  Technical  Services should  work  with  Liberty Bus to develop proposals for more buses to access town at points other than Liberation Station  and  a  service  that would link a range of urban areas whilst also penetrating towards the town centre.

TTS

20

The  Minister  for  Transport and  Technical  Services should  work  with  Liberty Bus to develop a service that would link a range of remote areas  to  bus  routes  that access  urban  shopping districts.

TTS

21

The  Minister  for  Planning and  Environment  should assess the merits of revising and/or clarifying the current strategies  relating  to development  in  town, notably with regard to their relevance to retail. This will be  essential  in  providing  a structure  to  the  south- westerly  shifting  town footprint  and  potentially contracting retail core.

P&E

Recommendations

To

Accept/ Reject

Comments

Target date of action/ completion

22

The  Minister  for  Economic Development  should  work with  the  Town  Team  or equivalent  body,  and  the Constable  of   St. Helier ,  to develop  plans  that  could help address and discourage long-term  empty  shop occurrences.

ED

Accept

23

The  Minister  for  Economic Development  should  work with  the  Town  Team  or equivalent body, and notably the  representative  from  the Environment Department, to ensure  that  change  of  use processes  and  laws  are  as appropriate  and  efficient  as possible.

ED

Accept

24

The  Minister  for  Economic Development should address the  issues  of underwhelming, inconsistent and  outdated  signage  with the  Town  Team  (or equivalent) to help improve the town experience for all users.

ED

Accept

25

The  Minister  for  Planning and  Environment  should examine  the  planning process  and  legislation associated  with  flags  and banners to ensure that they are  as  appropriate  and efficient as possible.

P&E

26

In his lead role in the States' Modernisation  Programme, the  Minister  for  Economic Development  should demonstrably  tackle  the issue  of  a  lack  of  co- ordinated cross-departmental working  within  the  States. Furthermore,  he  should ensure  that  initiatives  such