Recession? What recession? Shoppers are out in force on the High Street. But, Ben Bentley asks, are they spending, or are they merely window shopping?

The real question is this: with big name stores going into administration on a seemingly daily basis, how is the credit crunch – and now the recession – affecting our high streets?

Go to any almost any town in the country right now and you will find evidence of stores closing down or facing the threat of going belly up. 

And even the traditional market town of Bridgnorth, with its mix of small independent shops sitting happily alongside bigger retail chains, would seem to be no exception. 

Thankfully there are few if any vacant shops but at one end of the High Street is Woolworths, which short of a Christmas miracle of its own is to become nothing more than a fond memory.

Despite the presence of hundreds of bargain hunters hoping to snap up a bargain in its sale and taking advantage of a 2.5 per cent VAT cut, there is a tangible element of caution amongst shoppers who at the moment appear to be tightening their belts and cutting their cloth to suit the size of their pockets.

Inside one shop I overhear a couple who sound like a human price comparison website. “I’ve seen it cheaper in Argos” is their consensus, and out of the shop they go.

“The credit crunch is affecting everyone, it’s a national thing,” says Claire Foxall of electrical goods store LW Foxall on Bridgnorth High Street. “People are very cautious and there’s a nervousness amongst customers about what they spend. They are being careful about what they buy.”

“I would like to be busier than we are. People are shopping around and considering what they spend. We are working harder to give customers value for money – we are having to work twice as hard.”

A couple of doors down the High Street is the gift store Pure where co-owner Marc Griffin reports considerably fewer people visiting the town.

“It’s difficult, certainly in the last two weeks,” says Marc. “Foot-fall is a big problem – whether it’s people going to main centres or whether we’ve lost parking on Meredith Yard, that won’t have helped bringing people in.”  And there’s another worrying sign. “Empty car parking spaces in the High Street – that’s not good. December is noticeably down and we take 60 per cent of our takings in October, November and December, so it’s not good.”

The British Retail Consortium recently published figures showing that sales figures were well down (-2.6 per like-for-like sales and -0.4 per cent on total sales) and high street analysist Verdict Research has predicted there’s more of this for 2009.

It shouldn’t be underestimated how important to the UK economy and the local economy the high street is. The UK retail sector employs 3 million people and accounts for 10 per cent of Britain’s GDP, so what is good for the high street is good for UK PLC.

But while big names stores such as M&S, Debenhams and Tesco have started slashing prices to stimulate the retail sector, this cannot have helped the smaller traditional high street store. “The big boys discounting has affected us, we need people to support local shops,” Marc from Pure adds.

But certain smaller shops have responded. Just yards off the High Street womenswear boutique Lily has cut prices.

“We’ve got 20 per cent off everything except jewellery because it’s quiet,” says shop worker Lorraine Holmes who has noticed fewer people visiting the town centre.

“I think it’s because people turn on the TV and it’s all doom and gloom and big retailers are offering 20 per cent off everything – people are going to go to large retailers instead of smaller ones in market towns.

“But people are still spending – it’s less than in the past but they are still spending.”

Bridge 55, the upmarket menswear store, has responded to the current economic climate by also launching an online shop as even smaller retailers set up shop on the high street in cyberspace.

Bromley’s the florist has been on Bridgnorth High Street for 48 years and manager Jean Onions has no fears of disappearing as a result of the downturn, as many shops have done.

“Trade is down slightly but it’s not hitting us on the gift side,” she says explaining that it’s been the pick-up-and-buy side of the business more affected.

This must be the sunnier side of the street because a couple of doors down clothing store Parker Taylor reports they are “having a good run” despite a bit of a lull a few weeks before Christmas.

“The last 10 or 11 months we are well up on last year’s figures – we’ve got no complaints,” says manager Nigel Higgins.

“People are still spending. It’s good news in terms of business.”

At Beaman’s the butchers, established almost 140 years ago, there’s a queue almost out the door. And it’s constant: for every  person who is served and leaves, another joins the line.

Butcher Richard Devey says: “Trade is not down, people are coming from all over. People like quality and Richard Beaman has got his loyal customers.”

It’s a similar story at nearby Bridgnorth Delicatessen, where owner Simon Lucas reports that if trade is quieter in the week it more than makes up for it at weekends. “We are keeping up on last year’s figures and in some cases we are up,” says Simon.

“I would not be gloomy about it. There’s no doubt we are in for a harder time with jobs but generally I am fairly optimistic.

“Bridgnorth is a quality market town – a good quality market town will always bring people in.”

Stephen Harris, manager of Tanners Wine on the High Street, reported record sales year last year and although he’s daunted by topping that this year he remains optimistic for trade.

“Generally I think things are not as bad as everyone seems to feel they are,” he says. “We have definitely not noticed any downturn in trade. I’ve found our customer spending is on a par with last year.”

Stephen adds: “I’m not pretending we are not in a difficult situation but I’ve not felt it in the shop.”

Despite the downturn, people are still eating. Catherine’s Bakery boasts that holy grail of retail success: the queue. Manager Rachael Pollen says happily: “We are not really seeing fewer people, it’s not affecting us in that way. But people are cautious, they don’t spend as much. People used to come in for a loaf and two cakes and perhaps they are having a loaf and one cake.”

There is no shortage of opticians in Bridgnorth and Wayne Vernon, owner of Liage opticians on the High Street, says there’s no need for panic. “There’s no fewer people coming through the door for this time of year,” he says. “I’m guessing that people are spending a bit less but in general there’s as many looking.”

Again Wayne is not gloomy about the future of the High Street, adding: “In my opinion September was worse because  food was more expensive and fuel was up, but although we talk about the credit crunch fuel is cheaper, there’s discounts on clothes and mortgages are coming down. If you are in a job things you are no worse off.”

One concern is the closure of bigger stores. Market towns such as Bridgnorth can boast of smaller independent shops but there’s no escaping the fact that high street giants bring people in. To this end, the threat of closure to Woolworths a few hundred yards away is a matter for concern.

Wayne adds: “It’s a shame about Woolworths because it’s one of the major shops on the High Street, it’s a British icon that seems to be going to the wall, and it is another reason to come to town.”