The Wilko-sized hole on Kent's high streets masks deep rooted challenges

Can our high street shopping centres adapt fast enough?

IN DEPTH

The recent downfall of Wilko has once again highlighted the fragility of the county’s high streets. Can the our high streets be saved?

The rise of e-commerce and shifting consumer preferences is reshaping the fate of traditional brick-and-mortar stores. Kent’s retail and shopping sector is not immune to this challenge.

The Rise and Fall of Wilko

Wilko, formerly known as Wilkinson, was founded in 1930 by James Kemsey Wilkinson. Over the decades, it grew into a popular destination for shoppers looking for affordable homeware, gardening supplies, stationery, and more. Its no-frills approach to retailing and commitment to low prices made it an established fixture on the British high street. Wilko reported strong profits for most of the 2010s with turnover peaking at more than £1.6 billion in 2018.

However, as the retail industry evolved, Wilko faced numerous challenges. The rise of online shopping giants like Amazon and the changing demographics of its customer base were just some of the factors contributing to its struggles. Economic uncertainties, increased competition, and changing consumer behavior all played a role in the decline of the retailer. Some have further suggested that Wilko shops, weighted towards town centres, were located in the wrong areas as out-of-town retail parks have grown in popularity.

Kent was home to 14 Wilko stores spread across its towns, of which four shops were located in the medway towns. In Maidstone, Wilko was advertised often as an anchor store for The Mall. Whilst a number of shops have been taken over by Poundland and B&M since Wilko went bust, none of the stores located in Kent were able to be sold to new owners by the administrators at PWC. As Wilko’s last stores shut across the country this month, the profound effect of the closures on Kent's shopping malls and high streets is clear.

The shuttered Wilko stores left behind vacant retail spaces in various shopping malls and high streets across towns including Swanley, Ramsgate, Rainham, and Sittingbourne. These empty units will take a long period to find replacement tenants with the ability to occupy often significant spaces. With Debenhams recently going bust and retailers such as Boots and John Lewis looking to right-size their property portfolio in the coming years, our high streets shops are increasingly looking bare and at risk.

The closure of 14 Wilko stores has further resulted in a significant loss of jobs for local residents. Retail positions, including store staff, managers, and support staff, were among the casualties. Many local businesses had relied on Wilko as a steady customer, and the loss of this revenue stream will have ripple effects throughout the supply chain. Beyond its role as a retailer, Wilko had often been an active participant in the communities it served. The company supported local initiatives, charities, and events. It will be a challenge in the months ahead for Kent to fill in this Wilko-sized hole left across the county’s town centres.

Can retail in Kent adapt?

As shopping increasingly moves online post-Covid, many Kent shopping malls and high streets have had to adapt and innovate. Some have focused on diversifying their tenant mix by attracting new businesses and experiences such as leisure facilities. Others have invested in marketing campaigns and events to draw in customers and revitalise their areas.

Local authorities and business associations have played a more active role in supporting struggling businesses and promoting economic growth. Initiatives such as grants, training programs, and improved infrastructure have been introduced to help businesses weather the storm of changing consumer behavior. Sheerness and Folkestone both received millions of pounds in 2023 from the ‘levelling up’ fund for town centre regeneration projects.

Yet, it is hard to see this as anything more than papering over the cracks of a county where high streets are now dominated by vape and gambling shops as well as boarded up store fronts.

Just look at Bluewater. The shopping mall previously had 28 million visitors a year in the early 2010s but now has just over 17 million. It is now seeking to transform the space to become a leisure and entertainment destination alongside shopping and eating. Yet, the cost-of-living crisis is a drag on the centre’s transformation as the venue is increasingly quiet in comparison to previous years. The volume of online searches for the shopping centre remain significantly lower than pre-pandemic levels despite this being Kent’s premier shopping destination. It isn’t hard to envisage a future where the centre is putting forward its first planning permission proposal for a block of flats.

Elsewhere, last week, Tunbridge Wells Borough Council purchased the Royal Victoria Place (RVP) complex in the town centre after years of decline. Vast areas of the shopping centre are closed and the food court has been shut for a long period after retail leases were not renewed . Whilst the intent is positive, local authorities have a history of poor business ventures. Time will tell if RVP will be a turnaround story or another failure for a council that claims to have no money.

This isn’t to say that high street transformation projects don’t work. Across the country and in Kent, there are examples of towns that have been able to reinvent themselves for this new reality. While the loss of these 14 stores has undoubtedly left a mark on the local economy and communities, it is positive to see that Kent's shopping centres and town leaders are not giving up the fight. Adaptation and innovation are key as they navigate the shifting retail landscape, working to ensure that these once-thriving areas are able to be vibrant hubs of commerce and community life in the future.

Yet, the downfall of Wilko in Kent is a stark reminder of the evolving nature of the retail industry and the challenges faced by traditional brick-and-mortar stores in the current economic conditions. Towns will need to move quick and be more creative in order to fill the Wilko-sized hole in our shopping centres. The tide could be too strong for any town looking to reinvent itself in 2023.

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