Traders losing thousands over city centre roadworks

Traders losing thousands over city centre roadworks

The work on the stretch of New Street outside Piccadilly Arcade is due to be completed later this month.

Independent business owners in Birmingham city centre say they are losing thousands of pounds each week because of ongoing work to improve the footpaths.

The scheme is part of a two-year project that began in January, external, to improve areas across the city, including repaving paths and upgrading street lighting.

David Sturgeon, founder of Shepherds barbershop, said that since the work began outside his salon in Piccadilly Arcade on New Street, he has lost about £12,000 in trade compared with the previous month.

The city council said it had worked to keep the city open for business, but added that any drop in footfall did not mean traders were entitled to compensation.

Sturgeon said the area outside his shop had become a "dead-zone" and that he had lost "40-50% of his walk-in trade", which was "way more" than he had expected.

"I knew it was going to be bad, but I didn't think it would be this bad," he said.

Before the construction began, he said his chairs were "fully-booked day-in day-out."

"To suddenly have that cut off, it was a big punch to me and an unpleasant surprise."

The owner said that although he had managed to pay his rent and staffs' wages, he had chosen not to pay himself because of the fall in footfall.

David Sturgeon owns Shepherds barbershop and said the drop in trade had taken him by surprise

Sturgeon said he needed the work finished as soon as possible because he feared it could otherwise have a longer-term effect.

"So many of us [independent businesses] make our extra cash to get us through January and February in November and December, we'd just be done for really. It's really bad.

"The income just isn't coming to buy the stock ready for Christmas, to get gifting ready, if these are our purchasing months and this is quiet, everything else becomes quiet.

"That's the bit I worry about. Once the dominos start to fall, how far does it go," he added.

The owner said customers had been understanding, but it had been difficult to keep staff morale high.

"There's only so many times you can clean a shelf... after two or three weeks there becomes nothing else to do but hope that people start to walk through the door," Sturgeon added.

Sayed Hashemi from Top Tailor in the arcade said he had struggled to pay his rent because of the lack of trade

During the two-year project, other areas being improved include Bennetts Hill, Ethel Street and Temple Street.

Sayed Hashemi, director of Top Tailor in Piccadilly Arcade, said the effect on his business had been very similar to what he experienced during Covid.

"We are really quiet, we lose customers and we can't take our deliveries for dry cleaning."

He added that custom had fallen by 50% and that he could not afford to pay his rent.

The tailor said the noise from the digging often made the room shake while he worked, and he believed that was why people had avoided the area.

"We didn't [pay] last month and we will have to see what we can do. If it's going to be like this we may have to close down," Hashemi said.

"It is difficult. I don't know what I should do, we are worried."

The works, as pictured in October, have been under way since August

Josh Moran works as a barista at Faculty, a coffee shop in Piccadilly Arcade. He also said he had noticed fewer customers coming through the door.

"Normally we get people coming up and down from both ends of the arcade, but it's definitely been a bit quieter with less people walking past," Moran added.

"It does have an impact on the business, it means the days go a bit slower. It's not great [for business] and it wouldn't be good if it lasted", he said.

The city council said it recognised that major construction works can affect businesses.

"Throughout these works, our main objective, has been to keep Birmingham open for business while these public realm improvement works are carried out - which will make the city centre a safer, more attractive and accessible place to live, work and visit."

It added that where highway works were properly carried out, any reduction in footfall did not automatically entitle traders to compensation.

"We have worked with our contractors to mitigate the impact of these works as far as possible: maintaining access wherever practicable, engaging directly with businesses affected responding to their concerns, and completing the works as safely and efficiently as possible.

"Works are due to be completed by the end of this month (November 2026)."