THE AGENTS

Paul Tallentyre

Head of pub agency Davis Coffer Lyons

The high-street licensed property market is suffering from stagnation. Lack of innovation in the sector means that few new concepts are capturing the public's imagination. Coupled with this, there is little opportunity for independent operators to get a foothold on the high street to launch new concepts. The only sites coming to market are likely to be over rented and/or have restrictive licences, which place them at a

competitive disadvantage.

Multiple operators continue to trade increasingly tired-looking branded concepts, some of which have not changed in more than five years, and yet they achieve sufficient

trading levels to afford high rents. However, maintaining this balance leaves little room for improvement. Multiple

operators' focus is, after all, on returns - the costs of

re-branding and refurbishing sites are significant and the numbers are unlikely to stack up in terms of capex in relation to most high-street bar turnovers. Still the corporates

continue to hold their high street sites, further restricting supply, and we end up with homogenised high streets across the UK, lined with the same branded bar and pub operations.

With the smoking ban now in full force and such cheap alcohol readily available in supermarkets, staying in or

throwing a party is an increasingly attractive alternative to going out on the high street. Sales are reportedly down between 7% and 10% due to the smoking ban, exerting a further squeeze on bottom-line figures.

Generally though, the constantly beleaguered high-street market is likely to see the corporates clinging on in the

short term, while the independents, who cannot afford the cost of innovation coupled with high rents, are likely to be pushed out even further.

They are unlikely to return until a real adjustment of rents makes it more palatable for them - and until then we are likely to see little creativity.