Measuring the impact of two free hours car parking on town centre businesses

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1 Measuring the impact of two free hours car parking on town centre businesses Introduction The Vale Council has operated a two free hours car parking scheme since 9 December 2011 in the towns of Abingdon, Faringdon, Wantage and in the settlement of Botley. This report presents the findings from two business surveys one that was carried out in 2011 before the two hours free car parking initiative was introduced, and the other that was carried out in December 2012 (one year after the introduction of two free hours). This survey evidence assesses the impact that two free hours car parking has had on town centre businesses. Business survey in 2011 prior to free car parking Officers surveyed businesses in the market towns in October and November 2011, prior to the introduction of 2 free hours car parking. Businesses were asked to indicate how they perceived that the, then, parking charges impacted on their business and how they anticipated the two hours free parking would affect future trading, including possible changes in footfall and turnover. 88 businesses responded to this survey. Over 60 per cent of respondents believed the car parking charges had a negative impact on their business in November By contrast, the majority of respondents in the 2011 survey (over 73 per cent) thought that the introduction of two hours free parking would impact positively on their business in the future. Some 65 per cent of respondents predicted footfall to their premises would increase and this would then translate directly to an increase in the turnover of their business. Business survey in 2012, after one year of two free hours We surveyed all town centre businesses during November 2012 to quantify the impact of the introduction of free parking on local businesses, and received 97 responses to the survey. There are a total town centre businesses in the towns (including business services, catering and retail), so this represents a 22 per cent response rate. Compared with the industry average, this is a high response rate with most e-surveys likely to generate a 10 per cent response rate. We asked the following questions:- What impact, if any, has the introduction of two free hours car parking had on your business? 1 Source: Vale Council Retail Vacancy Survey 2012

2 What effect has the introduction of two hours free parking in your town had on number of people visiting your business? How much do you think the footfall to your businesses has increased by, per week, as a result of the introduction of two hour free car parking? What effect, if any, has the introduction of two hours free parking in your town had on your turnover? How much do you think your business turnover has increased by per week, as a result of the introduction of two hours free car parking? Do you have any other comments about the two hour free car parking initiative in Vale's towns? The responses were then collated and analysed and the findings expanded upon below. Of the 97 businesses that chose to take part in this survey, there is a good, and proportionate, spread between Abingdon, Faringdon, Wantage and Botley. 44 of the 97 firms polled (49.4 per cent) are based in Abingdon, the largest of the retail centres, and there was an even spread between the town centres in Faringdon (20) and Wantage (23). Only two Botley businesses responded. General Impact Almost 70 per cent of businesses reported that the two free hours car parking had a positive impact on their business. Of the 97 businesses that participated in the survey, only one reported a negative impact 2, with the remainder of responses either indicating no impact from the scheme (21.6 per cent; 21 businesses), or they were unsure as to its effect (8.2 per cent). 2 This business was located in Abingdon, just outside of the town centre.

3 Those surveyed were presented with ten statements relating to a range of possible impacts associated with free car parking and were asked to indicate with which of the statements they agreed. They could agree with all, some or none of the following statements. Statement Free car parking has.. made it easier for clients / customers to access my business attracted more people to shop in the town centre, increasing footfall on the high street increased the number of visitors to my business/shop encouraged shoppers to stay longer in the town, increasing customer spend increased client/customer well being as they no longer feel time pressured reduced the cost to staff and customers/clients working/visiting my business attracted shoppers into town centres who would have otherwise shopped in out of town retail parks/supermarkets No. and per cent of businesses agreeing with statement 60 (or 61 per cent) 50 (or 51 per cent) 34 (or 35 per cent) 44 (or 45 per cent) 47 (or 48 per cent) 34 (or 35 per cent) 43 (or 44 per cent)

4 attracted shoppers into town centres who would have otherwise shopped in other towns meant that people who have to use their cars to access shopping opportunities have not felt excluded 31 (or 32 per cent) 34 (or 35 per cent) The most popular response (with 61 per cent of respondents - or 60 businesses - agreeing with the statement) was that the introduction of free parking has made it easier for clients/customers to access my business. 50 businesses (51 per cent) agreed that the scheme has attracted more people to shop in the town centre, increasing footfall on the high street. Most businesses surveyed agreed that customers no longer feel time pressured visiting the town (48 per cent - 47 votes); businesses also felt it has encouraged shoppers to stay in town longer, increasing customer spend (45 per cent - 44 votes). Fewer businesses report a rise in the number of visitors to their respective premises (35 per cent), though there is a feeling the scheme has managed to attract more shoppers into the town generally, who might have perhaps visited out-of-town superstores or retail parks (44 per cent) and even other towns (32 per cent) previously were it not for the two hours free parking scheme. 34 local businesses (35 per cent) believe that those who find it unavoidable to use their cars to reach shopping destinations in town - perhaps rural or older customers - have not felt excluded from visiting. It seems free parking has contributed to what may, in some sense, be considered a greater sense of community, as those living in surrounding villages might feel more attached to the town in the light of this scheme. Other comments received When offered the opportunity to offer further written feedback on the impact of the scheme, 19 businesses took up this opportunity - almost 20 per cent. Overall, the comments are split fairly evenly between praise and criticism. One complaint seems to be the increased cost and lack of availability of parking for employees and residents since the introduction of the two hour free parking. We received five comments from businesses suggesting that costs of parking to employees and residents wishing to park all day have increased dramatically. The most common suggestion was to make it cheaper to buy longer-term parking permits. Though, as one respondent notes, this is perhaps a minor loss compared to the considerable gains to the town centre vitality. Two businesses suggested that two hours free was not long enough, and suggested a raised time limit, perhaps upwards of three hours, ensuring customers do not feel rushed or feel the need to cut short their visit to the town. This seems particularly important for hairdressers because average time spent in a salon exceeds two hours.

5 Impact on footfall A majority (49) of local businesses (51.6 per cent) report an increase in the number of visitors to their premises since the introduction of the parking initiative. However, 30 (31.6 per cent) believe there has been no effect on the number of people visiting their businesses. No businesses reported a reduction in footfall, and 16 of those surveyed (16.8 per cent) felt they could not answer either way ( don t know ). When asked to quantify the impact of the parking changes on footfall to their premises, the results are less clear cut. 40 businesses were able to quantify the impact on footfall see chart below. 48 (49 per cent) opted to skip this particular section, and 9 (19.4 per cent) said don t know. 15 businesses reported that the two free hours car parking had increased footfall to their business by 5 9 per cent. See chart below for details of all responses.

6 Impact on customers We also asked businesses to quantify how many additional customers per week they have had, as a result of the free car parking. 16 businesses (16.5 per cent) were able to answer this question, but the results are significant. One business was able to determine they had 25 extra customers per week, six others responded 10 to 15 extra customers with the rest (9 businesses) reporting fewer than 10 additional customers per week. On average, businesses who answered this question reported 12 additional visitors per week per business in comparison to the previous year. This is significant for small, independent retailers but because of the small sample size we are unable to say that it reflects the position across the Vale s towns. Impact on turnover In line with the impact on footfall, the impact of the two hour free parking on turnover is broadly positive. No businesses report reduced turnover attributable to the free parking scheme.

7 Whereas 52 per cent of businesses reported increased footfall within their premises, only 33 businesses (or 35 per cent) report increased turnover. This is not unexpected, as of course not all visitors leave as paying customers. We therefore conclude that the free two hours car parking has had a greater reported impact on footfall than on turnover, though both are positive. We asked businesses to quantify by how much their turnover has increased since the introduction of two hours free car parking. See chart below, noting the low response rate (only 33 businesses).

8 Of the 33 businesses that responded to this question, the majority recorded increases in turnover of less than 5 percent (36 per cent); 9 businesses (27 per cent) saw increases of up to 9 percent, 2 (6 per cent) and 4 (12 per cent) saw increases of 14 and 20 per cent respectively and, significantly, 1 business saw turnover increase by more than 20 per cent. One business was able to quantify the impact on the free car parking as 4,000 extra turnover per week. Four businesses cited increased turnover in the range per week and another four cite per week. Please note that only 9 businesses were able to quantify the impact on turnover. Additional comments Businesses were offered the opportunity to provide any additional comments or feedback they might wish to pass on near the end of the survey. These are documented below, noting which town the comments relate to. This is an excellent initiative, particularly in Faringdon and has undoubtedly helped to maintain the town's economic viability. (Faringdon) In such a small town, which is trying to improve it's footfall, having as few limits on parking is imperative. The traffic wardens are so persistant and agressive, that people don't just 'stop off' anymore, so they need incentive to park up for longer. (Faringdon) Needs to be longer, 3 hours would be better (Abingdon) A very positive policy, please let it continue (Abingdon)

9 Has made business life a lot easier with not having to worry about clients and staff finding parking. Also saves a lot of petty cash. (Abingdon; Shippon) Free parking should also be given to the Business e.g. one parking space over the road per business. (Abingdon) I have noticed that local shoppers feel that it is some compensation for the building upheaval in the precinct (Abingdon) Very useful for people visiting all businesses in Abingdon (Abingdon) I think it is a very good initiative that helps encourage people to visit Wantage. I think it would be even better if it was extended to 4 or 5 hours. (Wantage) It can only be beneficial to the town. (Wantage) Having to get a ticket is STILL seen as a real inconvenience. Short Stay Parking Clocks are a MUCH more convenient alternative - and MUCH cheaper for the Council. See for example November/Beat_the_rush_to_buy_your_parking_clock.h tml If you HAVE to keep the machines, then you can give people the option. If they have a VoWDDC parking clock then they DON'T need a ticket. (Faringdon) Conclusions Overall, businesses have stated that the two hour free parking scheme has had a positive effect on footfall, number of customers and turnover in the Vale area per cent of business surveyed prior to the implementation of two free hours car parking believed it would have a positive impact on their business. One year on, 70 per cent of businesses reported that it had a positive impact on their business. 22 per cent said it had no impact while 8 percent said they were unsure of the impact. - Easier to access my business: over 60 per cent reported that free parking had made it easier for customers to access their business, and over 50 per cent said it had attracted more people to shop in the town centre, increasing footfall on the high street. - Impact on footfall: over 52 per cent reported an increase in footfall while 32 per cent believed there had been no effect on the number of people visiting their business. 40 businesses were able to quantify the impact on footfall; with 7 businesses reporting an increase of under 5 per cent, 15 businesses reporting an increase in footfall by 5 9 per cent, 19 businesses reporting a per cent increase in footfall and 2 businesses reporting an increase of more than 20 per cent. - Impact on customers: 16 businesses were able to quantify the impact on number of customers. One business had 25 extra customers every week, six others reported 10 to 15 extra customers with 9 businesses reporting under ten additional customers per week. - Impact on turnover: 33 businesses reported that they believed they had benefited from increased turnover as a result of the free car

10 parking initiative. The majority recorded increases in turnover of under 5 per cent, 9 businesses reported increases of up to 9 per cent whilst 6 businesses reported increases of between 10 and 20 per cent. One business saw turnover increase by more than 20 per cent. The latter business quantified the impact as 4,000 extra turnover per week. Additional comments received ranged from requests for longer time period (3 hours - Abingdon) to (4 or 5 hours Wantage). There was a request for dedicated parking for individual business owners. One respondent suggested it was a real inconvenience having to get a ticket and suggested that short stay parking clocks would be much more convenient and much cheaper for the council see Ringwood Town Council. This survey suggests that the two hours free parking scheme has been a success, as businesses cite increases in footfall, customers and revenue.