The little UK market town with high street in crisis as independent shops on the brink

Where once independent shops thrived, many stores in Hitchin's High Street are now struggling to survive. The town's character, its small, quirky stores and family-run businesses, is under pressure from rising costs, changing consumer habits, and online competition.

Rick Gaglio knows the story all too well. After 30 years in retail, he's closing his menswear store later this month, having already shuttered a womenswear shop last year. "People's priority is not clothing anymore. The help for small businesses in the UK is almost non-existent. I'm finished with retail, and I advise others to do the same," he said.

Gaglio has pivoted entirely, opening Meow Lounge, a cat cafe where visitors can meet adoptable cats while enjoying coffee and pastries. "This place is constantly packed because people are looking for experiences, not retail.

"It's how you adapt in the current economy," he said.

The cafe brings him satisfaction in a way retail no longer did. "There's one half of me, the retail side, that feels defeated. And another half, Meow Lounge, that feels good to have given people experiences that add value to their lives," he said.

For Matthew Rideout, owner of Knead and Desire Bakehouse, the challenges are different but just as pressing.

He is juggling rising costs, cautious customers, and wage pressures.

"We have considered increasing prices, but it's a time of austerity for everyone. Customers are coming in for fewer visits and spending less, picking up one or two items fewer. If we increased prices now, we'd be shooting ourselves in the foot," he said.

Rideout wants to expand and hire full-time staff, but for now, part-time employment is all he can afford. "We are trying to keep our heads down to get through this tight period for consumers.

"If we can do that the we should be fine when spending returns, but for now we are fighting to get through," he said.

Even though the small business National Insurance allowance has increased, the rise in minimum wage quickly eats it up. "Costs of ingredients are going up, but passing them on to customers isn't wise either," he added.'

Vintage clothing store H-Town Rags is also feeling the squeeze. Co-owner Charlotte Oaten explained that wage increases have prevented them from replacing a worker who left, forcing her to take on an additional 15 hours a week.

Just this week, she has added 30 extra hours while her partner is away.

"There have been significant increases in costs, we can't charge more for products, suppliers are charging more, and the gap is getting smaller. We just want to make ends meet and be comfortable at the end of the day," she said.

Government policies are amplifying these pressures. From April, companies had to pay National Insurance at 15% on salaries above £5,000, up from 13.8% on salaries above £9,100.

Minimum wages rose to £12.21 for over-21s and £10 for 18- to 20-year-olds as part of a move toward a "single adult rate." Pandemic-era business rate relief was also reduced from 75% to 40%.

While the Government has increased the employment allowance for smaller companies, many traders say it does little to offset the squeeze.

Last year's Budget saw employers bear the brunt of £40bn in tax rises. Gaglio added: "With minimum wage going up, the staff get paid. I don't. Whatever I do make, it gets taxed on dividends.

"The country is at an all-time low. I don't make comments on politics often, but in my 59 years, this has been the worst, most poorly run Government in my lifetime. Even that lady who was in for five minutes was better."

Despite the challenges, some businesses are finding ways to survive.

"Retail is finished," Gaglio said. "But giving people experiences that add value to their lives, that's what works now."

Hitchin's High Street is adapting, but not without cost.

Some independent businesses hope to survive and eventually grow, while others are forced to rethink their models entirely.

Danny Pearson, Town Centre Manager said: "Hitchin is fortunate to have a thriving independent business community, with one of the lowest vacancy rates in the UK and a strong reputation for its vibrant mix of shops, cafes, and restaurants.

Visit Hitchin works hard all year round to ensure the town remains a vibrant, clean, safe, and welcoming place for business to benefit from and visitors to enjoy. That being said, our traders have certainly faced significant challenges in recent years, from the pandemic and rising costs to the uncertainties around national policy decisions.

"The Hitchin business owners work incredibly hard to adapt, whether by diversifying their offer, benefiting from local events, or finding new ways to attract visitors into town. Visit Hitchin (Hitchin BID) is here to support them with marketing campaigns, town centre events, and initiatives that help drive footfall and celebrate the uniqueness of our local independents.

"While the national picture remains uncertain, Hitchin's passionate commercial and residential community give us confidence that we will continue to thrive. The challenges are real, and we are doing everything we can to support our independents to ensure they can make the best of what the future holds."