CIVIC and economic leaders have expressed disappointment after a landmark firm announced it was pulling out of Alton. Phillips Homestore will close its doors for the last time on January 31 after 75 years in the town. The firm in High Street has blamed the closure on "changing trading conditions" and "increasing competition especially from out of town retail warehouse operators". John Ormond, a director of Phillips Homestore, said: "We will be trading as normal during these last two months and will be having a grand closing down sale starting in early December. "This decision only affects the retail store in the High Street and does not affect any other business interests the company has. "This decision will also allow us to concentrate fully on our property business, for example the development of Rowan Industrial Park on Mill Lane. "The directors would like to express their sincere thanks to those loyal staff and customers who have supported the business over the last 75 years." The property has been sold to fashion-led department store Mackays - which has stores in Waterlooville, Petersfield and Farnborough - which plans to open early next year. The announcement comes just over three months after DIY giant Focus won its battle to set up home on Mill Lane Industrial Estate. A government inspector ruled that the store would greatly benefit the town and its economy, representing an investment of £9.5m. At the time, John Ormond, a director of Phillips Homestore, told The Herald he was disappointed at the decision. "I do think it will have quite an impact, not only on us but on Alton High Street in general," he said. "I know that there is another application in at the moment for another retail warehouse on the site next door and I think that with the precedent now having been set, Alton town centre had better watch out." A decision has yet to be made on an application by Homebase - which has stores in Basingstoke, Farnham and Winchester - to build a store on the Hampshire Commercials site in Mill Lane. Chris Glanfield - of chartered surveyors Glanfield Holmlund, which advised Phillips on the sale of the store - said: "We have actually been approached by an ever increasing number of retailers seeking representation in Alton over a number of years. "The key difference on this occasion has been the Focus DIY store consent and, on top of that, the further retail application by Homebase on the adjoining site." Town mayor Paddy Mendham said: "I am very disappointed at losing yet another of our stalwart town centre stores. We need, as a town, to be pulling together to bring more shops back into Alton otherwise people are going to desert the town centre. "I have never been keen on out-of-town shopping. We, as a town, need a thriving shopping centre, otherwise it will change the nature of the town and become a threat to our hospital, garages, etc. Town centre shopping is needed to maintain the town's character." Mike Baker, president of Alton Chamber of Commerce and Industry, said: "It was sad to hear that Phillips has decided to quit the High Street as they have had a presence here for many years and over this time the store has successfully adapted to the ever-changing and demanding circumstance of the market. "Phillips has been changing in other ways too, and has successfully built up a property development arm that has grown to be the major element of its overall business activity. "This, together with the changing patterns of shopping for hardware products, has led Phillips to decide to focus on its more successful property development venture and, in this, Alton Chamber wishes them well. "However, this change also reflects the growing vibrancy of the town centre as Alton has seen other shops leave, for a variety of reasons, to be replaced by new businesses and entrepreneurs bringing new ideas and products. This natural commercial evolution ensures that the Alton's town centre remains relevant to today's consumer and provides the dynamic interest to attract shoppers and business clients from a wide area. "Phillips experience also reflects this local vibrancy, as it is understood that there were many takers for the premises and this confirms the attractiveness of Alton to new businesses and retailers. "The position in the High Street is being taken over by Mackays, a national group who wish to develop a fashion-led store here in Alton and the chamber welcomes them and wishes them every success."
