agenda item no.5 report to: report no: lead member...
TRANSCRIPT
AGENDA ITEM NO.5
REPORT TO: Employment, Investment and Business Scrutiny
Committee REPORT NO: HAED/03/13S DATE: 6 February 2013 LEAD MEMBER: Councillor Neil Rogers
(Lead Member for Economic Development and Regeneration)
CONTACT OFFICER: Peter Scott (Tel: 292405) SUBJECT: Town Centre Market and Shops WARD: Smithfield and Grosvenor 1. PURPOSE OF THE REPORT 1.1 To present the Options for the future operation of the Council’s town centre
markets; to seek the Member’s support for the future plans of the markets and recommend them to Executive Board.
2. EXECUTIVE SUMMARY 2.1 The report summarises the current operation of the three town centre indoor
markets, 24 retail shops and the outdoor Monday market operation in the town centre. The indoor markets comprise of a total of 109 stalls located with the People’s, Butcher’s and General markets. In addition, the outdoor Monday market comprises approximately 30 stalls, dependent upon weather and seasonal variations to trade.
2.2 The report sets out a number of possible options for the future of the markets. It
explains how the markets support and enhance the range of commercial attractions available in Wrexham town centre. It also considers the economic policy objectives. It also identifies and quantifies some of the recent problems and reduced occupancy within the markets and proposes a range of options intended to address these issues.
3 RECOMMENDATIONS 3.1 That the Employment, Business and Investment Scrutiny Committee:
i) note the contents of this report; ii) recommends a preferred option for future market management ; and
iii) notes that the Head of Assets and Economic Development will prepare
a Strategic Asset Management Plan based on the option preferred by the Committee, for approval by Executive Board
REASONS FOR RECOMMENDATIONS To enable the Head of Assets and Economic Development to manage the markets as directed. 4. BACKGROUND INFORMATION 4.1 Markets are a big part of Wrexham’s core identity and make up. The town has had
an established market for over 700 years. The markets are essentially a collaborative exercise between the Council, which manages the markets, and the traders who sell goods and earn their living from the markets.
4.2 However, the social and economic context in which markets operate has changed in
recent years (see appendix 1 section 2). Goods that were once bought at markets can now be found in supermarkets or ‘pound shops’. A market can struggle nowadays to compete with supermarkets or discount stores because such retailers have buying power which enables them to keep prices low.
4.3 In order for markets in Wrexham to be competitive and sustainable, it is imperative
that they operate in an attractive, well managed environment. In addition, market traders need to sell goods that shoppers want at prices that they can afford. As market traders are unable to compete with supermarkets and discount stores on price they must compete on other areas such as quality of service and specialist knowledge
4.4 In the last 18 months numerous reports have been instigated by government to
consider the future of our high streets and town centres, including the British Retail Consortium’s 21st Century High Streets, (December 2011), the Portas Review (February 2012), and the National Assembly for Wales report on the Regeneration of Town Centres. All of these concluded that that markets (indoor and outdoor) are important as part of a successful and diverse retail offer; The recent All Party Committee investigating the future of Markets concluded that the balance between independents and multiple retailers and other uses is vital for consumers providing “an opportunity to escape the conformity and homogeneity of the retail experience offered by the large supermarkets.”
4.5 The markets make a significant contribution to the local economy (see appendix 1
section 3). The three indoor markets alone, at current levels of occupation, support approximately 250 jobs and prove a good, low risk route to self employment. They also contribute to the Green capital agenda, by encouraging recycling of books, furniture, electrical goods etc
4.6 For example, the recently produced Destination Management Plan for Wrexham County Borough identifies the town centre as a key tourism hub. The plan requires the town centre to have the type and range of attractions that will appeal to visitors, if the objective of “boosting visitor numbers and spend” is to be achieved. Clearly, this will not be achieved if the town centre is dominated by national retail chains and has nothing to offer a visitor that distinguishes it from scores of other places.
4.7 Recognising the collaborative nature of the markets operation, a wide ranging
consultation to obtain the views of all stakeholders was undertaken, not just because ‘it ticks a consultation box’ for the Council, but because any strategy selected needs to have ‘buy in’ from ideally, everyone concerned.
4.8 The markets are at a crossroads. Not only are there external macro-problems, such
as the recession, changing consumer spending patterns, the internet, but there are also micro-problems such as the changing retail configuration of Wrexham.
Indoor Markets
4.9 A detailed summary of the indoor markets and the 24 associated shops is outlined
in section 4 of the appended report. However, as currently configured, the three indoor markets provide 109 stalls, totalling some 1,996 sq m (21,400 sq ft) of lettable floor space. Currently, 78 stalls are occupied by 65 traders. The Butcher’s and General markets are both Grade II listed buildings, built in 1848 and 1879 respectively. Their listed status means there are constraints on potential adaptations and improvements. The General market, in particular, requires substantial upgrading and repair work in the near future, including repairs to the roof, floor and heating systems. The cost of the work required is multiples of the annual rent.
4.10 The People’s market, opened in 1992, is located at the ground floor level of the
multi storey car park. The property has an unattractive utilitarian appearance including limited natural light, low ceilings, exposed duct work and currently almost one third of the stalls vacant. The number of market stalls is not equally distributed across the three indoor market halls. The largest, by far, is the People’s market, with 58 stalls. Next in size is the Butcher’s market which has 35 stalls and the smallest, the General market with just 16 stalls.
4.11 Since 2007 the levels of occupation in the three indoor markets has declined from
90% to a figure of 70% currently. This is a high vacancy rate, compared with town centre shops, which currently have a vacancy level of around 10%.
4.12 As part of this review process, each of the markets has been reviewed to determine
future maintenance requirements. A full three year programme will be developed that matches funding. Any final programme will be agreed with the traders.
4.13 In addition to requiring urgent maintenance work, the markets also require
improvement to their cosmetic appearance. This is particularly true of the People’s Market. The ‘market stalls themselves are now over 20 year old. They look very dilapidated and dated. Overall, the appearance of the building is that of a ground floor multi storey car park, rather than an attractive retail environment. The poor quality of the environment deters potential shoppers and new occupiers.
4.14 The management of the markets falls within the remit of the Commercial Estates
team, led by the Commercial Estates Manager. The Assistant Markets Manager who is supported by three full time Market Attendants, is responsible for day to day liaison with traders and overseeing cleaning and dealing with routine management issues, including enquires from new traders. The Commercial Estates Manager is involved in negotiation of rents and letting of new stalls. It must be noted, that in the last 5 years the number of staff working in the markets has been reduced. Emphasis, therefore, has been placed on deploying limited staff resources effectively, ( i.e. having the right people, doing the right job, at the right time). Since April 2012, existing systems and procedures within the markets have been improved and in some instances new procedures have been introduced to ensure that the markets are better run. Running alongside the introduction of new procedures there has been a tightening up of issues such as ‘encroachment’ and display of goods.
4.15 The level of rental income from the three indoor markets has also declined since
2007, reducing by some 28% in the People’s, 35% in the Butcher’s and 27% in the General market. Although the recession has resulted in a declining financial performance, the income generated in each market still exceeds the expenditure. However, within the cash limited budget in previous years the income target was set far too high. Therefore, in 2012/13 the cash limited budget, through the use of the department’s inflation allocation, was increased by £109,000 to accurately reflect the average occupancy level of 64% at that time. A further £110,000 is to be allocated in the 2013/14 budget which would then result in a zero cash limited budget. This means that any surplus generated could then be re-invested back into the markets to address options 2 and 3 below. However, if occupancy levels reduce this potential surplus will reduce.
4.16 The views of all stakeholders on the future of the market are important. As outlined
in section 8 of the appended document, considerable efforts have been made to engage with local Members, shoppers, traders, and business groups, including National Market Traders Federation, The Federation of Small Business and the Town Centre Forum.
4.17 Almost everyone who engaged in the consultation process recognised the
contribution that the markets make to the local economy and the diversity of the retail offer in the town centre.
4.18 Other local authorities who operate markets have been contacted for purposes of
comparison, as they have considered how to respond to changes in the retail scene. In the main, decisions have either had to be made to either reduce the size of indoor markets, close them entirely, or paradoxically, to substantially invest and upgrade the facilities. Halton Borough Council have reduced their markets operation and Cheshire West and Chester have reduced the size of the indoor market hall in Chester. The locations that have decided to invest include Blackburn, who invested £8m in a new market which opened in June 2011; Leicester City Council, who plan to invest £7m in developing a brand new building to replace the 1970's indoor market hall; Accrington, who refurbished it Grade II listed indoor market hall in 2011 which was subsequently voted Britain’s best indoor market in a
national competition organised by NABMA. Accrington market now consists of 37 market stalls in a Victorian market hall and 92 additional stalls in two pavilions. The market offer is balanced between 50% food related and 50% non food. Occupancy rates are currently 89%.
Options
4.19 It is recommended that a sequence of options and decisions should be considered.
The first decision is whether the markets should remain in their present form.
Stage 1 - to retain the current provision or reconfigure 4.20 In some locations, the decline in demand for market stalls has been dealt with by
closing off or mothballing part of a market hall and compressing traders into the reduced floor area. Firstly, The Butcher’s Market and the General Market are both grade II listed. Options for either partial closure or alternative use, whilst not impossible, would be heavily restricted. In contrast, the People's Market is not listed and therefore has none of the above constraints.
4.21 An option given the current number of occupiers in the markets overall, could be to
close the General Market and relocate the 10 occupiers to the other two indoor markets. In cost terms this may be attractive, as it would avoid incurring the considerable expenditure required to undertake the necessary repair works to this building, such as repairing the leaking roof, investigating drains, improving heating and relaying floors etc. The works required exceeds four years rental income and clearly, in purely economic terms, the building is unsustainable. That said, if the building was closed, some outgoings such as business rates would continue to be incurred. However, this solution is not advocated because it is recognised the closure of this landmark building in a core location within the town centre, even on a temporary basis, would have detrimental effect on the town centre.
4.22 The People’s Market is the Council’s biggest retail asset by far. It is also the least
attractive of the three indoor markets, with its concrete construction, poor lighting and exposed duct work. In addition, as a result of changes in footfall patterns within the town centre generally, and the closure of TJ Hughes, It is now situated in a location in the town that is remote from the main shopping streets.
4.23 A section of the market hall could be closed and a new use introduced. One option
would be retail – divide up the space and create some new shop units. Another option is relocate a Council service into this space.
4.24 Potentially, the above can be structured at either little or no cost to the Council.
Either end user occupiers or a developer would commit to an agreement for a number of years and in theory this agreement over time would result in a cost recovery.
4.25 However, there are factors against this option. Firstly, in the current economic
climate attracting occupiers and developers might be problematic; secondly, this option would result in the market being smaller and therefore less of an attraction in its own right. In addition, once a proportion of the market hall is reduced it will be lost permanently. In terms job creation, Shops would create fewer jobs than if the building is kept as a markets hall. Finally, this option would actually further restrict the levels of natural light into the market hall.
4.26 The recommendation therefore, is to retain the three existing markets. However the next options are to consider the levels of investment and improvement necessary to achieve a viable and confident future.
Stage 2 - Investment and Management Options
4.27 The three options listed below have been put together to illustrate potential levels of
action and intervention. Clearly, elements of each can be selected. Before considering these three options it is essential to note that much of the expenditure is indicated will be spent on maintenance. A proportion will be spent on cosmetic improvement. None of this will guarantee the markets future success. A considerable burden for this rests on the shoulders of Traders, who need to provide good s that shoppers want.
Option 1 - Routine Maintenance and management change
4.28 The Status Quo in the markets is not a sustainable position. The markets cannot
continue in their current form, because it will be increasingly difficult to compete with other retail environments without improving the physical fabric and appearance. The markets need to look loved, feel safe and have a good range of attractive goods. In this first option maintenance would be limited, the maintenance budget for the markets would remain unchanged for 2013/14 at £117,788. This would result in potential departmental savings of £110,000 provided that occupancy levels remain the same. However, changes in the management practices would be introduced, with revised letting procedures, new cleaning schedules and improved communication with traders. Stalls in the People’s market would be relocated from the window area adjacent to Holt Street, to increase penetration of natural light into the building.
‘Market carts’ - these are small market stalls, built to resemble antique old time
street traders carts – will be introduced in South Mall of the People’s Market; within the limited budget available, advertising and promotion to shoppers would
be improved; stalls in the People’s market that obscure windows on Holt Street would be
relocated to improve natural light levels; security patrols will be introduced possibly linking with other Council assets; tenant mix needs to be readjusted. The markets need to be open to competition
and the constraint of traders being granted ‘monopolies’ should be lifted; in addition, an increased food offer needs to be encouraged and gaps have
been identified in terms of collectables, antiques and home and handicrafts; the Business Support team, which is responsible for assisting business start
ups, will work with markets staff to support potential entrepreneurs by offering space within the indoor and outdoor markets;
empty and unattended/closed stalls are considered off-putting to shoppers. It is proposed that traders that do not remain open during published opening hours will be relocated to less prominent positions;
a new Market protocol (rules and regulations) will be issued clearly indicating landlord and occupier responsibilities;
to improve diversity, on a six month limited trial basis, shopmobility scooters will be available for hire within the People’s Market hall;
a new ‘stalls request panel’ will be established. It is proposed that the panel will include Town Centre Manager, Markets Manager and a Trader. The panel will ensure that decisions on new stalls are made in a strategic, fair and transparent way. As ‘landlord’ the final decision to accept new occupiers would rest with the Council; and
height restrictions need to be imposed on stalls, as displays currently touch the ceiling in the People’s Market. Some late night shopping will be introduced in the period before the Christmas period, but opening hours will remain largely the same.
Option 2 - Programme of Investment and improvement
4.29 This option would include the elements listed above, but would also involve major
physical improvement, that will require an increase in the annual repair and maintenance budget by £110,000 to £227,788 as identified in 4.15,.to improve the fabric and appearance of the indoor markets. The People's market has the biggest problem with appearance and image. This has to be improved. New stalls with canopies and associated lighting will be introduced. Heating and ventilation will be improved in both the General and the People’s market. - They need to be warmer and more inviting. Entrances across all market halls need to be improved and made more inviting. Improvements will be made over a three year period. Final costing and specification will determine the actual roll out. Discussion / consultation with traders will also be undertaken. An illustrative schedule would be;
Year one: install new heating system in the People’s Market; repair glass roof in General market; introduce some new canopy stalls in People’s Market, with improved lighting; ‘Trading carts’ introduced in South Mall of the People’s Market; improved internal signage; and replace automatic doors in Butcher’s market. Year two: install new canopies on remaining of stalls in People’s Market; install canopies or visible signage on external elevations and entrances of
People’s Market; install speaker system in General Market; and upgrade CCTV in People’s Market. Year three: upgrade access to Butcher’s Market; upgrade traders toilet in the Butcher’s Market; revise rear entrance (Chester Street) to remove planters and benches – safety
by design; remove entrance from Henblas Street to create additional stalls and improve
security (General Market); clean all canopies in Butcher’s and People’s Market; install canopies on stalls (General market); install Wifi; and renew floor (General market).
Option 3 - Physical Improvement plus systems Change
4.30 This option would include the management changes in option one, together with the
physical works outlined above in option two; however, this option would go one step further, by intervening to proactively change and improve trader mix. To achieve this, traders would, after a period of appropriate notice and planning, be relocated
within the markets to create distinct themes. One Market selling food and food related items, - another market specialising in clothing and fashion etc. In addition, traders signing new agreements to take stalls would also agree to their staff being unskilled and trained in Customer Care. This is similar to the requirement at ‘Outlet villages’ such as Cheshire Oaks, where customer care is an essential component of the retail experience. This option is not popular with traders.
Stage 3:- Additional Weekly Outdoor Market
4.31 Although an attempt to create a second market day (Thursday) on Queens Square
was unsuccessful in 2011, some traders associated with the outdoor market have declared an interest in an additional outdoor market, ideally, every Friday. Consultation has been undertaken both with retailers located in and around Queens Square, traders in the indoor markets and the Town Centre Forum, to ascertain whether local businesses would support an additional week day market. The results of this consultation have strongly indicated an opposition to the proposal, and given the failure of the previous trial an addition market is not proposed.
4.32 Policy Framework – The markets support both the place and the economy element
of the Council Plan. In addition to economic growth and prosperity. 4.33 Budget – if option 2 or 3 is selected the markets repair and maintenance budget will
be fully utilised. If option 1 is selected there could be potential savings of £110,000 provided occupancy levels remain the same.
4.34 Legal – Legal input will be sought if required during implementation of the preferred
option for market management. 4.35 Staffing – No direct staffing implications. However, operational requirements may
change depending on how options are implemented. 4.36 Equality/Human Rights –EIA/000715 4.37 Risks - Investment in the indoor markets is not a guarantee of success. The market
traders need to provide goods that attract shoppers. In addition, shops in the vicinity of the market and wider town centre need to share in the creation of an attractive retail environment.
5. CONSULTATION 5.1 Consultation with local Members, market traders, shoppers, Wrexham Town Centre
Forum, Federation of Small Business. BACKGROUND PAPERS LOCATION WEBSITE INFO.
Appendix 1 –HAED/03/13S
Town Centre Markets and Shops
Information
Assets and Economic Development Department January 2013
CONTENTS Section 1 Introduction Page 2 Section 2 Social and Economic Page 4 Context Section 3 Overview Page 6 Section 4 The Markets and shops Page 9 in detail Section 5 Current Performance Page 18 Section 6 Personnel Page 24 Section 7 Comparison / Markets Page 26 Elsewhere Section 8 Consultation and Page 27 Shopper Survey
- 1 -
Wrexham Town Centre Markets Section 1 Introduction The purpose of this document is to set the scene for discussions on the direction of Wrexham’s town centre markets. Options for the future of the markets will be considered by Council Members and a Strategic Asset Management plan will be produced by the Assets and Economic Development Department to implement the preferred option. Markets are a big part of Wrexham’s core identity and make up. The town had an established market-fair as far back in 1391. By 1620 markets were regularly being held on Mondays and Thursdays. In 1858 the newly formed Wrexham Corporation regularised the markets and started organising the indoor markets. The Butcher’s Market was built in 1848, The General (Butter) Market opened in 1879. Over the years the Wrexham public has demonstrated enormous loyalty and enduring affection for the markets, which in turn has ensured that not only have the markets endured, they have prospered. Nowadays, the three indoor markets and the weekly outdoor Monday Market still bring variety and a unique distinctive flavour to Wrexham town centre. That said,, in recent years there has been a visible down turn in the fortunes of the indoor markets.Occupancy levels have declined substantially, from 90% in 2007 to 70% currently. The three questions posed as part of the consultation exercise associated with this document were firstly; does Wrexham still continue to perceive it’s self as a market town? Secondly; does everyone associated with the markets, including traders, potential traders, shoppers and the Council see a future for the markets? If the answers to the first two questions are affirmative, then the final and key question is; what sort of markets should Wrexham have in the future? At the outset It was recognised that in addition to reviewing cold, hard facts and figures, the opinions of all stakeholders would be vital, not just because it ‘ticks a consultation box’ for us, but because any strategy chosen needs to have a buy-in from everyone concerned. Consultation has therefore been undertaken with traders and business groups (including the National Association of British Market Authorities, The Federation of Small Business and the Wrexham Town Centre Forum). The contribution, enthusiasm and ideas generated by each of these groups and individuals is acknowledged and appreciated. The comments and observations collected through consultation have shaped this document. Some comments are referred to in the sections that follow.
- 2 -
Finally, it should be noted that for many years the markets were managed by the Council primarily as property assets. As a result, the contribution they made to the local economy and job creation was largely unrecognised. Recent changes to Council structures, which resulted in the creation of the Assets and Economic Development Department, ensures that this wider contribution is acknowledged and is both a feature of the day to day operation of the markets and a key consideration of this document.
- 3 -
Section 2 Social and Economic Context There are a range of social and economic factors in play (macro and micro) which could influence the future of the town centre in general and the markets in particular. The markets can play a major part in preserving Wrexham’s distinctive identity but it is at a crossroads. Not only are there external macro-problems, such as the recession, changing consumer spending patterns, the internet, the growth of competition but there are also micro-problems, such as the changing retail configuration of Wrexham, including Eagles Meadow. The way town centres are being used by the public has altered considerably in the past 10 years. Lifestyles and habits have changed, especially when it comes to shopping. People typically have less time, have more alternatives and very different expectations. The result has often been highly negative upon town centres, with the major supermarkets in particular, drawing shoppers away. A generation ago, most people spent several hours a week shopping in the high street because that was the only place they could buy the things they needed. That doesn’t happen anymore. Now people can purchase many of those things in supermarkets and online, at times that fit-in with busy lifestyles. Internet sales in particular have hit traditional retailers. The percentage of total retail sales on the internet was 9% in 2011 and is expected to rise substantially over the next few years. Technology is changing the way we live and how we shop. The UK online retail sector is the largest in Europe, with the internet used by consumers to compare prices and buy online (e-commerce). A recent report by the Economist Intelligence Unit suggests at least one third of retails sales in the UK will take place over the internet by 2020. In addition, goods that were once bought at markets can now all be found in supermarkets where there is a huge choice of goods under one roof, in an environment that is clean, pleasant, secure and above all convenient. Most shopper’s today travel by car. They appreciate the free parking offered at supermarkets and the simple and easy transfer of their purchased goods from the shopping trolley to their vehicle. Value stores and ‘Pound Shops’ are now established in prime locations on high streets throughout Britain. They offer the type of goods that previously were the core offer at markets. A modern day market can struggle to compete with supermarkets or discount stores. Such retailers have buying power which enables them to keep prices low. They are increasingly dominant and have taken, and will continue to take sales from traditional markets. Shopping habits are changing; whilst it’s not universally true, it’s generally the case that modern consumers can be classified by being in one of five groups:
Service (shoppers who put emphasis on the service they receive);
Choice (shoppers who put emphasis on range and variety);
- 4 -
Technology use (shoppers who put emphasis on e-commerce or m-
commerce options);
Value (shoppers who put emphasis on getting the best price); and
Experience (shoppers who put emphasis on an enjoyable ‘all-round experience’).
Taking on board the above, traders need to consider which of these groups they will appeal and sell merchandise to in the future. The views and opinions of both shoppers and traders are highlighted in section 10. The kind of customer that the market should try to attract also has implications for how the Council promotes the markets in the future. As indicated above, in recent years the markets in many other towns have declined because they are not able to deliver the goods at a price that consumers demand. However, that doesn’t mean we should be afraid of the future. If they can adapt and change with the times, Wrexham’s markets can stay relevant to the needs of consumers and continue to thrive. Of course, that’s easier said that done. Towns and cities across the country are also trying to work out how to breathe new life into their markets. In order for the markets in Wrexham to be sustainable, it is imperative that they provide an attractive, well managed environment. Traders need to provide products that shoppers want at prices they can afford. As market traders are unable to compete with the supermarkets and value stores on price, they need to compete on quality, service and specialist knowledge. It is easy to blame either the recession or the development of Eagle’s Meadow. These are facts of life. The key element is to focus on what can be changed for the better, by adopting a cohesive and joined up approach to problem solving, by partnership working between interested parties.
- 5 -
Section 3 Overview i) Markets and small shops – their economic contribution The markets are recognised as an invaluable tool that allows the Council to help the town centre economy. Whilst there are over 450 properties for retail and leisure use in the town centre, the vast majority of these are in the hands of private sector landlords. The Council’s ownership is restricted to just the three indoor markets and the 24 small shops that are physically part of the fabric of the market buildings. However, the provision of market stalls and the small shop units is of immense value, in terms of giving local people a relatively low cost and low risk chance at self employment, particularly when linked to the advice and support packages offered by the Assets and Economic Development Department’s New Business Start programme. In the last 18 months numerous reports have been instigated by government to consider the future of our high streets and town centres, including the British Retail Consortium’s 21st Century High Streets, (December 2011), the Portas Review (February 2012), and the National Assembly for Wales report on the Regeneration of Town Centres. All of these concluded that that markets (indoor and outdoor) are important as part of a successful and diverse retail offer; The recent All Party Committee investigating the future of markets concluded that the balance between independents and multiple retailers and other uses is vital for consumers providing “an opportunity to escape the conformity and homogeneity of the retail experience offered by the large supermarkets.” The range and provision of local markets also has implications for tourism in Wrexham. The recently produced Destination Management Plan for Wrexham County Borough identifies the town centre as a key tourism hub. The successful delivery of the plan is dependent upon ensuring that the town centre offers the type of attractions that visitors seek, if the core objective of “boosting visitor numbers and spend” is to be achieved. Clearly, this will not be accomplished if the town centre is dominated by large national chains and has nothing to offer that distinguishes it from scores of other places. In summary therefore, markets have an important role to play in meeting many of Wrexham's strategic objectives. This includes those set out in the Council Plan, the Economic Prosperity Strategy and The Destination Management plan and the Objectives of the Local Service Board. The list below sets out some of the interactions between markets and strategic themes: Markets – social and community cohesion
Markets provide opportunity to engage with new communities Act as a meeting place
- 6 -
Markets – economy and regeneration
Provide business start-up, small business and employment opportunities Add to retail diversity Enhance the vitality of retail centres
Markets – food and health
Provide access to fresh fruit and vegetables/5 a day campaign Provision of specialist products e.g. celiac, vegans etc
Markets – environment
Help deliver sustainability e.g. reduced miles Contribute towards waste reduction, re-use and recycling Green capital agenda e.g. through second hand goods such as books and
furniture. Markets – culture and tourism
Contribute to place making, creating identity and a sense of place Provide outlets for the creative industries sector Provide an opportunity for people to discover other cultures through food
and craft ii) An overview of indoor markets The town centre has three indoor markets; The People’s Market, General Market and the Butcher’s Market. In addition, an outdoor market is held every Monday in Queens Square. The Commercial Estate is also responsible for twenty four town centre shops. Each of these is reviewed in detail in the next section.
- 7 -
1. People’s Market 2. General Market 3. Butcher’s Market
However, by way of setting the scene, as currently configured, the three indoor markets provide 109 stalls, totalling some 1,996.35m² (21,463 sq ft) of lettable floor area. Currently, 78 stalls are occupied by 65 traders. As an indication of the contribution to the local economy, the indoor markets currently sustain employment for around 250 people. This equates to one job for every 85 sq ft (7.89 sq m) of lettable floor area. If occupancy rates can be increased up to the maximum, the indoor markets could support jobs for up to 300 people. This ratio of jobs created per square foot of floor area is higher than the average for most other types of employment activity including general retail. In addition, the 24 town centre shops also support around 40 jobs, with the Monday market helping to sustain approximately 60 jobs in the broader region. Architecturally, the Butcher’s and General Markets are both Grade II Listed buildings, built in 1848 and 1879 respectively. This means that there are constraints on potential adaptations and improvements. However, their Victorian origin ensures attractive character buildings that are popular with local people and visitors alike. In contrast, the People’s Market built in 1992, is located at ground floor level of the multi-storey car park. The property has a utilitarian appearance. The original design layout confines how the internal space can be utilised.
- 8 -
Section 4 The markets and shops in detail a) Butcher’s Market
The Butcher’s Market was built in 1848 and extended in 1880. The Market was originally the home of the town’s butchers. The building is built of roughly coursed stone with a slate roof. The main entrance is located on High Street with a rear entrance adjacent to No 40 Henblas Street which forms part of the extension built in 1880. The rear entrance is similar in design to the General Market entrance which it faces across the street.
The market has 35 stalls with a total lettable floor area of 547.15m² (6,178 sq ft). Traditionally the market was a meat market but today there are only three stalls selling meat produce. Other goods for sale include cards and crafts, pet supplies and confectionary. The retail offer provided to the customer could be improved if the tenant mix is considered when prospective tenants seek to take a stall in the market. At present there is a wide range of retail products on offer within the market. Internally, the market hall includes two permanent stalls or shops to either side of the entrance from High Street, both with late nineteenth century detailing. The interior market hall is particularly impressive in terms of the internal architecture. The market has four entrances; High Street, Henblas Street, Bank Street and Central Arcade which is off Hope Street. Issues remain with the only disabled access to the property via Central Arcade which is privately owned. There are issues regarding the cleanliness of this access. As a Grade II Listed building, adaptations and improvement works are restricted. However, some improvements already made include the installation of stall canopies, which formed part of the roof refurbishment works carried out in 2000 which have visually improved the internal appearance of the market, together with new frontages to the perimeter Stalls, which now offer either a shop window and single door entrance or bi-folding doors to provide a fully accessible stall when open for trading. Enquiries for stalls are received on a regular basis for this market, and existing traders have expanded during the past two years, if not to open a new business to
- 9 -
add additional selling space during the Christmas period. A number of stallholders also occupy a second stall as ‘display stalls. Whilst the use of empty stalls for display has been popular with existing tenants such practice could be viewed by customers as a decline in the market. Planning Comments The property is Grade II Listed and located within a Conservation Area. Any proposed changes to the building will thus be subject to constraints and may require Listed Building Consent and Conservation Area Consent. An initial meeting has been held with Planning Officers and advice sought from the Senior Conservation Area Officer. The installation of canopies over the main entrances, to enhance the visibility of the market, is not supported by the Conservation Area Officer as it is considered that they would detract from the original design intentions and obscure important architectural detailing. Given the constraints on development due to its listed status and the permeability of the building and its connectivity to the adjoining retail streets, the building contributes positively to enhancing the character, vitality and viability of the area. Consequently, alternative uses would not be acceptable. Highways Comments The property sits within the pedestrianised area of the town centre and is therefore subject to restrictions associated with loading. Loading is available between the hours of 5:00pm and 11:30 am Sunday to Friday and 5:00pm and 9:30am Friday/Saturday. The pedestrianisation of High Street has recently been reconfigured in order to facilitate the route of the Shoppa Hoppa. This has resulted in a bus stop being installed near to the High Street entrance of the Butcher’s Market.
- 10 -
b) The General Market The General Market is a Grade II Listed Building built in 1879 on the site of Manchester Square which had previously been used as an open market by visiting tradesmen during annual fairs. The building comprises a top–lit market hall and a row of five shops along its western elevation to Henblas Street with Public Conveniences in the south east corner. The main Market entrance is at the south west corner facing the Butchers Market across the street. There are three other entrances, one further along on Henblas Street, Henblas Square and Chester Street. Internally the architecture is very attractive with exposed cast iron octagonal columns with ornamental capitals which carry hooped iron trusses. Due to the current stall furniture these internal features remain partially obscured. The market houses 16 stalls with a total lettable floor space of 199.50m². (2142 sq ft) The Market was originally named the Butter Market as it originally sold butter and diary products. However, due to World War II rationing and revised hygiene regulations in the post war period, the market became a general market, although many locals continue to refer to it as the Butter Market. The mix of traders includes a clothing retailer, barber; seamstress and café. In physical terms the building is in reasonable condition for its age, however, because it’s an old building age and construction it is expensive to maintain and keep in good condition. There are maintenance issues that require attention in either the immediate or near future, such as repairs to the roof and improved heating and automatic doors. As the building is currently Grade II listed, any work undertaken must be sympathetic and in keeping with to the listing status, using only approved and authentic materials. Work associated with the roof and floor could also be disruptive and may require a period of closure. Cost estimates for this work vary between £55-60,000.
- 11 -
Heating The heating system in this market comprises a single high level warm air blower, supplemented by a number of electric heaters fitted near doorways. This current provision is highly inefficient and ineffective. As a listed Victorian building, with a large glass roof, retention of heat is a problem. In winter months temperatures in the market hall fall to unacceptable levels and create a poor working environment for traders. This needs to be improved. As this market has four doorways, a further ‘improvement could be (subject to planning consent) closure of one of the two doorways off Henblas street Planning Comments As well as being a grade II Listed building, the General Market is located within a Conservation Area. Any proposed changes to the building will be subject to constraints and may require Listed Building Consent and Conservation Area Consent. An initial meeting has been held with Planning Officers. In principle, Planning Officers are supportive of the potential enlargement of the entrance opposite the Post Office in Henblas Square. Although any works would need to be of a high quality design using appropriate materials consistent with the listed and conservation area status. Installation of canopies or large signs over the entrances, to enhance the visibility of the market, is not supported by the Senior Conservation Officer as it is considered that they would detract from the original design intentions and obscure important architectural detailing. In Planning terms, no change of use would be needed for food retail use and such a change would be supported as it would contribute positively to the vitality and viability of the area. Highways Comments The property sits within the pedestrianised area of the town centre and is therefore subject to restrictions associated with Loading. Loading is available between the hours of 5:00pm and 11:30 am Sunday to Friday and 5:00pm and 9:30am Friday/Saturday at both Henblas and Chester Street.
- 12 -
c) The People’s Market Description: The People’s Market was completed in 1992 to replace the Victorian Vegetable Market which had been established in 1898. Whist there is a high vacancy rate; there is a varied offer within the market which includes a Café; furniture sales; vacuum cleaner repairs; jewellery retailer, beauty products, and various clothing outlets. However, the items listed do not bring regular footfall that other goods, such as food, would attract. For this reason, it would be traders’ preference to bring food into the market, which in itself brings issues, particularly with the ambient temperature of the markets, which would affect the freshness of certain foods and limited access to water and drainage. The People’s Market is also the largest of the three indoor markets, housing 58 stalls with a total lettable floor area of 1,249m² (13, 444 sq ft). The market is located on the ground floor of the building, above the market hall is a multi-storey car park. The building also houses two malls; North and South. Both malls have pedestrian access direct from Chester Street with the North Mall also being accessed via the upper floor car park via lifts and staircase. Both malls provide access into the main retail hall of the People’s Market. The South Mall is the largest entrance and houses 8 retail units four of which are currently let. The basic architectural style of the building doesn’t create an attractive retail environment. It has a number of conspicuous shortcomings, including limited natural light, low ceilings, exposed duct work and almost one-third of stalls vacant. It has none of the character or charm of the other two Victorian markets. Both internally and externally it has little appeal as a shopping environment. If the fortunes of the peoples market are to be turned around it needs to look more like a market hall and less like a car park. The market looks tired, old fashioned and neglected. It appears to have changed very little in the 20 years since it opened. In terms of private sector
- 13 -
retailing, this timescale without a refit is very unusual, as it is recognised that refits generally generate improved turnover. Entrances and signage is poor, the market has a cluttered look and does not lend it’self to good customer flow. There is a lack of ‘atmosphere’ inside the market Externally an extensive band of colourful signage was erected at first floor level on the Market Street and Holt Street elevations in March 2012. The new signage has been well received by the traders as it advertises that there is a market hall located within the building. Despite the above improvements, the visibility of the People’s Market at pedestrian level on Chester Street, Holt Street and Market Street remains poor. The signage over the entrance to the South and North Malls is only be seen by pedestrians when looking directly onto the entrance of the building. Visibility would be improved if canopies or protruding signs could be erected over the pavement at first floor level. The installation of canopies or signs above the entrances to both the North and South Malls would improve visibility and create visual impact. Both the South and North Malls leading into the People’s Market off Chester Street have been redecorated in September 2012 to improve the appearance of both of these entrances. The columns within the Market hall were also painted beige so they are less prominent and improve the overall visual appeal of the market. The existing Market’s office is being relocated from the North Mall of the People’s Market to Unit 7 in the South Mall. The current office is not open to members of the public and the move will provide an office that is accessible to traders, members of the public and will provide an operational base for markets staff and other Council Officers. A number of Shop Units within the Market Complex have been let during the past two year period, and significant investment has been made by the new businesses taking
- 14 -
occupancy. This has improved the overall look of the front of the market, and brought a ‘fresh’ look to the parade Heating A study of the heating and ventilation system at the people’s Market, was undertaken in 2009. It found that the plant was beyond its working life. Parts for the boilers are not now readily available. A review of this situation and a full assessment of the system is being undertaken as a priority to ascertain whether one or both boilers require replacement. Lighting As previously mentioned, the main market hall currently has an uninviting appearance and poor ambience. Part of this is the result of the current overhead lighting within the market, which is very, very poor. It would be beneficial to install improved lighting. Energy efficient ‘white lights’ would reduce utility costs by approximately £2,300 per annum. However, these would cost in the region of £20,000 to install. A test installation of a single line of these lights in 2012 was inconclusive. Subjectively, they did little to increase lighting levels or improve ambience. The preferred solution to improve ambience and environment would be to either reduce or remove the current fluorescent strip lights on the market stalls and replace with spotlights. This would ideally be done in conjunction with a replacement or upgrade of the stalls themselves, which are currently 20 years old and have a worn and dated 1980’s appearance. The stalls would benefit from the erection of a market canopy over each stall. (Similar to the Butcher’s Market) This would enhance the appearance of the market hall and give it the appearance of a market. The cost of new stalls, lighting and canopies could be significant, in the region of £3,000 £5,000 per stall, depending on the specification selected. Planning The market is neither listed or located within a Conservation Area. Planning Officers have confirmed that the People’s Market fronts onto Principal Shopping Streets. Policy S1 of the UDP seeks to ensure that these sites are not subjected to change that would have a detrimental impact on the character, viability and vitality of the area. The preference would be to retain the space for retail use. Sub division for a small supermarket/alternative large retail user would be acceptable, Alternative uses however, such as leisure/cultural may be an option providing these uses would contribute positively in terms of footfall in the area and not detrimentally effect the character, vitality or viability of the area. The option of converting the People’s Market into a ground floor car park is not supported by the Planning Department. The cost and viability of converting the existing floor area to a car park are also likely to be prohibitive and thus at this initial stage this is not considered to be a viable option
- 15 -
Highways comments The property sits within the pedestrianised area of the town centre and is therefore subject to restrictions associated with Loading. However, the property also benefits from a two vehicle loading bay, which is available to all traders. For those properties sited on Chester Street, choosing to load from the Street itself, loading is available between the hours of 5:00pm and 11:30 am Sunday to Friday and 5:00pm and 9:30am Friday/Saturday. The property also benefits from a small bus interchange sited on Market Street. This provides two bus stops together with a flow of commercial bus operators, and the Shoppa Hoppa. d) Town Centre Shops Within the retail property portfolio, associated with each of the covered markets, there are a total number of 24 shop units, offering a total of some 1,377 sq m lettable space. The People’s Market houses 15 Units which are located within the South Entrance Mall and fronting the market itself on Chester Street. The units range in size from 15 sq m to 115 sq m offering a range of users from Dog Grooming to Newsagents and Office Accommodation to Hairdressers. Historically, the units have been in demand and fully occupied, but in parallel with the reduction in occupancy levels shown in the People’s Market itself, occupancy levels have declined. In an attempt to improve the outlook of these properties, redecoration works have recently been undertaken, which have improved the entrance to the market, and with the relocation of the Market Office to within the South Entrance Mall, it is hoped that this will improve the visibility of the Markets Team and accessibility to both traders and public alike.
- 16 -
The General Market houses five units which are located along the Henblas Street frontage and of these four are small lock up units offering circa 20 sq m of floorspace, with the remaining unit providing a double fronted shop providing some 41 sq m of lettable floor space. All units are currently occupied and this is the trend for this parade of units, which currently sees two longstanding occupiers offering fruit and veg for sale and a key cutting service. More recent lettings have seen a window blind retailer and optician taking occupancy. The Butcher’s Market houses 4 units, three of which are situated on High Street with the remaining unit located adjacent to the Henblas Street Entrance. Units range in size from 24 sq m to 158 sq m, offering a range in users from Newsagent to Café and Thai Pre-packaged Food to Sun Bed Shop. Although the café is currently vacant, historically these units have an excellent occupancy record, and prove popular when vacant. As theses shops are physically part of the markets, their condition and maintenance is linked with the markets themselves. e) The Outdoor Monday Market The outdoor market was originally known as the Beast Market and held at St George’s Crescent, which was the site of a cattle market since the 15th century. The Monday Market has moved several times, initially to Eagles Meadow in 1971, Waterworld car park in 2002 before finally settling in its current location at Queens Square in the town centre in 2006. The market sells a range of goods including clothes, fruit and vegetables, meat, household goods, plants, arts and crafts and has a burger van on site too. The Monday Market continues to be popular with shoppers, with 35 regular stalls and 4-6 casual traders on a weekly basis, during the summer months.
- 17 -
Section 5 Current Performance a) Occupation levels Occupation levels in the markets have declined gradually over the past five years, as shown in the table below:- Table 1 Market Occupancy 2007-2012 (March) Market Voids (by percentage)
2007 2008 2009 2010 2011 2012
People's Market 4.56 9.84 2.82 13.13 22.69 26.91
Butcher's Market 11.63 14.85 19.08 32.41 23.84 22.46
General Market 13.18 3.87 0 10.48 29.34 42.15
Number of Market Voids (by numbers of stalls)
2007 2008 2009 2010 2011 2012
People's Market (58) 3 5 2 8 12 16
Butcher's Market (35) 3 6 6 8 8 9
General Market (16) 3 1 0 2 4 6
The reduction in occupancy has had a negative effect on income received from the markets, and in an attempt to attract new occupiers and specifically new businesses; terms of occupation and (financial) assistance associated with new lettings have been reviewed. b) Financial review. i) Income and Expenditure There has been a marked reduction in the rental income from the markets over the past 5 year period with income reducing by some 28% (People’s); 35% (Butcher’s) and 27% (General). This reflects an increase in voids within the same 5 year period. The most notable drop in income/occupation took place between 2009 and 2010 across all three indoor markets, which was due to a number of businesses closing due to lack of business; retirement or reduction of stalls held by traders, in an attempt to cut overheads.
- 18 -
It must be noted that one possible reason for the reduction in occupied space is due to larger businesses within the market downsizing due to the revised rating system. Stalls which are joined have been rated as single units, which in some cases affected the RV, taking it above the £6,000 relief limit. In order to reduce costs, traders are looking at overheads and one easy ‘quick win’ was to downsize, or relocate to smaller units, perhaps separated by a walkway, so as not to incur the additional rates liability. Although the recession has resulted in a declining financial performance, the income generated in each market still exceeds expenditure. However, within the cash limited budget in previous years the income target was set far too high. Therefore, in 2012/13 the cash limited budget, through the use of the department’s inflation allocation, was increased by £109,000 to accurately reflect the average occupancy level of 64% at that time. A further £110,000 is to be allocated in the 2013/14 budget which would then result in a zero cash limited budget. This means that any surplus generated could then be re-invested back into the markets to address options 2 and 3 below. However, if occupancy levels reduce as rental income declines, this potential surplus will reduce Repairs and Maintenance is examined in more detail in section 6. However, the amount spent on repair and maintenance over the last three years is shown in table 2 below. Table 2 Markets Repair and Maintenance Costs Description 2010/2011 2011/12 2012/13 Potential
2013/14 (Options
2 & 3) Regulatory 5,919 3,432 14,000 14,000
Routine Maintenance
30,510 28,401 32,000 32,000
Programmed Works
2,854 3,545 18,000 0
Cyclical Maintenance
8,356 8,562 13,500 13,500
Available Additional Funds
11 15,445 40,288 168,288
Total 47,650 59,385 117,788 227,788
- 19 -
c) Management Performance The management of the markets falls within the remit of the Commercial Estates Team. The team works to achieve the following goals;
maintain the markets within the prescribed budget; reduce expenditure; increase lettings; promote the markets to shoppers and new traders; and provide value for money management.
Overall, budgets are constrained. A significant percentage of the annual maintenance budget has been reallocated in recent years, to fund other priorities, in response to budget pressures. This means that the fabric of the markets has been maintained, but not improved. The problem is that as the markets are a retail environment they need to compete with rival commercial undertakings, who constantly upgrade and refit their premises to create attractive, contemporary, shopping environments. Whilst efforts have been made to attract new traders, the condition of the markets has made this difficult, and as a result, the recruitment of new traders has been reactive, rather than proactive. Since April 2012 exiting systems and procedures within the markets have been improved and in some instances new procedures have been introduced to ensure that the markets are ‘fit for the future’. There has been a tightening up of issues such as ‘encroachment’ and displaying goods. That said, work has already begun to improve the current operation of the three markets. Since the January 2012 the following initiatives have been undertaken;
a 25% reduction on rent payable by ALL retail occupiers within the three covered markets and associated shop units. This ensured that rent payable during the period 1st January – 31st March 2012, was reduced, at a cost of circa £18,500 to Assets & Economic Development in lost income;
working practices have been reviewed. The team of Market Attendants has been reduced from four to three. Costs of these employees is met by the traders, so this action will reduce service charge;
a daily/weekly/monthly cleaning schedule has been produced and will be adhered to;
redecoration of the North and South Malls in the People’s market; the use of more flexible occupation agreements; improved signage on external elevations of People’s Market; campaign of radio advertising linked to the ‘park free’ offer; requiring traders to occupy only the space they rent; zero tolerance on ‘creep’ which has a negative impact in terms of appearance
and makes the aisles potentially a health and safety hazard; a formal process to assist Tenants in financial difficulty. Traders can receive
support from the Council provided they can demonstrate with documentary evidence ( Bank statements, accounts etc ) that they need it;
- 20 -
promotional signage has been erected on the Market Street and Holt Street façades of the people’s Market; and
an extensive six month advertising campaign on Heart Radio, commenced in February 2012. Thirty, 30 second adverts daily to promote concessions on town centre car parks and indoor markets.
As part of continuing effort to improve the service, the following elements are under review.
how arrears are managed and rent is collected;
creating a simple document ‘A Market Protocol’ that summarises what the Council will and won’t provide and what is expected in return from the traders; and
issues regarding tenant mix. Historically, traders believed that they are entitled
to a monopoly within their respective markets. This is not the case. The issue of competition is addressed in legislation currently being drawn up by Government. The revised regulations will be incorporated into a new markets protocol document taking the directive into account, together with advice and guidance from National Association of British Market Authorities (N.A.B.M.A) and the National Market Traders Association.
d) Repair and Maintenance The available Repairs and Maintenance (R&M) budget for the market has over the past three years been significantly reduced due to pressures on the income target set and other areas of the commercial portfolio budget. Total spend for 2010/11 was £47,650 and £59,385 in 2011/12. The reduced level of available R&M spend over the past few years has restricted the level of repairs that have been able to be carried out. Consequently, there has been little opportunity to make any improvements to either of the markets. A brief description of how the additional R&M budget is currently spent is outlined below:- (i) Legal compliance It is vital that the markets are compliant with current legislation. Annual and periodic tests are undertaken in respect of the fire alarms, electrical testing, lifts and water supplies. In addition, the Council has a responsibility to ensure that the buildings are compliant with current Fire Regulations, The Disability Discrimination Act and Health & Safety legislation. Expenditure on regulatory works has increased by £6,000 to £14,000 during the current financial year. This money will enable the completion of works relating to the two entrances to the General Market on Henblas Street. Only one entrance currently allows easy access for wheelchairs due to the level of the pavement. The doors at this entrance are not automatic, which make it impossible for access to be gained by someone in a wheelchair, unless assistance is given.
- 21 -
The painting of the loading bay access in the People’s Market is also required, for safety reasons. Improvements are also being made to Market Street Car Park, which will include the repainting of lines on loading bay and painting of handrails serving the disabled access way from the car park to the People’s Market. Disability Discrimination Act (DDA) Survey It is some time since DDA Audits were last formally carried out. Full audits will be undertaken by March 2013 across all three markets. As the automatic doors within the markets regularly fail, investment may be required to replace a number of doors. Fire Risk Assessments (FRA’s) These were originally carried out by Chubb Fire following changes in legislation. These assessments are reviewed on an annual basis. Asbestos Surveys These will be undertaken. It is a requirement that documentation is available to all contractors who work on the premises to comply with health and safety legislation Health & Safety Assessments Assessments are currently being undertaken on an ongoing basis, Actions coming from this include the hatched painting of the loading bay. In order to maintain these assessments, annual reviews will be programmed to take place (ii) Routine Maintenance Constraints over the past three years made on the Markets routine maintenance budget has been limited to essential repairs only. (iii) Programmed Works An initial review of the markets has highlighted a need for the following works to be carried out as they will benefit the day to day operation of the markets in the short term: Relocation of the market office to South Mall People’s Market This will improve
the visibility of Market’s staff and make them less remote to the people they are trying to serve;
additional external signage to improve visibility, installation of fence around compactor at the rear of the People’s Market to
improve safety; and new automatic door in South Arcade People’s Market. To improve appearance
and improve reliability. Additional minor works will also be programmed with a total additional expenditure of £14,405 during 2012/13 being made.
- 22 -
(iv) Cyclical Maintenance Routine cyclical maintenance will continue as required. As indicated previously in this document, both the South and North Malls leading into the People’s Market off Chester Street have been repainted, together with all associated shop fronts, in order to visually enhance both of these entrances. (v) Future maintenance requirements In order to establish maintenance requirements in the coming years, and asses the capital investment required. It is required that condition surveys are carried out by appropriately qualified staff / external consultants. (vi) Lettings Process It is clear that the three markets are failing to attract new traders. In addition, the range of goods offered is limited. If the markets are to become a prestigious asset and a visitor destination in their own right, it is recognised that a range of policies must be developed to address this vital issue because the entire viability of the Market operation project is dependent upon an appropriate trader mix and trader uptake. In addition, whilst historically, each of the markets had a distinct character and theme, nowadays the same, or similar goods are sold across the three markets. Letting strategies will be reviewed with traders. The most important end objectives should not merely be letting the market stalls to full capacity, but attracting the right mix of stalls. To this end, agreed criteria will be developed to achieve an optimal mix of occupiers. One vital element in this is to understand that the composition of successful markets does not happen by accident. Because Traders operate on different product ranges with different product prices and profit margins, some of these Traders will be relatively more/less responsive to foot-flow adjustments than others. Accordingly, it has to be in the interests of the markets to develop different rental approaches and charges (per square foot) for different types of businesses. This will be reviewed and considered. The key element is that some businesses, by definition, require lower cost bases and the markets need such businesses to ensure viability.
- 23 -
Section 6 Personnel The ‘Markets Team’ is part of the Commercial Estates section within the Assets and Economic Development Department. As recently as four years ago the ‘Markets Team’ consisted of Market Manager; Two Assistant Market Managers, one full time, and the other part time, (to take control of the outdoor Monday Market). There were four Market Attendants. Following a number of ad-hoc, but necessary changes to structures following staff departures, the Markets Team has reduced in number in recent years. Currently the establishment comprises two Assistant Markets Managers (1 f/t and 1 p/t), together with three Market Attendants (full time). The loss of the Market Manager post has meant that regular interventions have been required, by the Commercial Estates Manager, in the day to day operation. As a consequence, some of her responsibilities have been reallocated within the wide Commercial Estates Team. However, any decision to create a Market Manager post have been deferred, pending the outcome of discussions linked to this document which could change the direction of the markets, that in turn would significantly alter the context of a Market Manager’s job. Emphasis in the past twelve months has been placed on deploying limited staff resources effectively, ( i.e. having the right people, doing the right job, at the right time). Since April 2012, existing systems and procedures within the markets have been improved and in some instances new procedures have been introduced to ensure that the markets are better run. In May 2012, to ensure that sufficient staff are employed to carry out duties required, and value for money is being achieved, a review of activities and responsibilities was undertaken. As a result of the review in September 2012 a temporary contract of employment in respect of a Market Attendant was not extended. The hours of all Market Attendants were regularised at 37 hrs per week. The Support Services Section of Assets and Economic Development Department, who provide caretaking services and cleaning operatives across the County Borough, now provides cover for absences and exceptional circumstances. The effectiveness of this approach will be monitored for a period of six months, until 31st March 2013. However, at the present time it appears to be working well. The market office has been relocated to the South Arcade of the People’s Market and the Market staff will be more visible and accessible. Staff structure may be require adjustment, depending on the option for future direction, selected by Members. However, the stakeholder consultation process raised a number of issues in relation to the day to day management of the market. In particular, the reduction in staffing resources means that the management is reactive rather than proactive. There are a number of strategic and operational issues that will be addressed regardless of the outcome of any review:
the preparation of an detailed annual business plan The need for commercially focussed operational management of the service A focus on new business start up opportunities
- 24 -
The production of a marketing and promotions strategy Improved standards of repair, maintenance and cleanliness Improved stakeholder engagement, in particular relation to communication
with market traders The market tends to operate in a somewhat isolated manner and would
benefit in closer integration with town centre activity and business. Current Staff Structure
Commercial Estates Manager (Job Share)
Assistant Markets Manager
Assistant Markets Manager (Part Time)
Market Attendant Market Attendant
Market Attendant
- 25 -
Section 7 Comparison / Markets Elsewhere In preparing this SAMP, other local authorities who operate markets have been consulted and contacted for purposes of comparison. By way of summary these include: i) Halton Borough Council Halton originally operated two indoor markets - one in Widnes, one in Runcorn. In the face of decline, Halton engaged external NABMA to undertake a full and impartial study to review the markets operation. As a consequence, a decision was taken to close Runcorn's 6,400 sq ft market building and concentrate all resources on the Widnes side of the river. The former market hall in Runcorn has been converted by Halton Library Services and Halton Direct Link, providing public access to the library and Council services such as payments, service requests and general enquiries. Widnes market now has amended opening hours - that now means it is open on a Sunday and closed on a Monday - the markets have been improved physically and there is a waiting list of traders. ii) Cheshire West and Chester Chester West and Cheshire engaged DTZ to undertake a comprehensive review of its markets operation. The Council took the decision to reconfigure the market in Chester during 2011, reconfiguring the operation, and reducing from 53 to 35 market stalls. This was combined with investment to improve the physical appearance to give stalls a uniform and attractive appearance. Occupancy which had previously been 53% has now risen over the past 12 months with a 96% occupancy level achieved. iii) Other locations Elsewhere, various Market operators have considered how to respond to changes in the retail scene. In the main, decisions have either had to be made to either reduce the size of indoor markets, close them entirely, or paradoxically, to substantially invest and upgrade the facilities. The locations that have decided to invest include Blackburn, who invested £8m in a new market which opened in June 2011; Leicester City Council, who plan to invest £7m in developing a brand new building to replace the 1970's indoor market hall; Accrington, who refurbished it Grade II listed indoor market hall in 2011 which was subsequently voted Britain’s best indoor market in a national competition organised by NABMA. Accrington market now consists of 37 market stalls in a Victorian market hall and 92 additional stalls in two pavilions. The market offer is balanced between 50% food related and 50% non food. Occupancy rates are currently 89%.
- 26 -
Section 8 Consultation and Shopper Survey The views of all stakeholders are important. Considerable efforts have been made to engage with shoppers, traders, and business groups, including National Market Traders Federation, The Federation of Small Business and the Town Centre Forum. Local Members have also been consulted. Two surveys have been undertaken, one with shopper, another with traders to assess both the satisfaction with the current market offer and potentially the appetite and need for change. a) National Association of British Market Authorities (NABMA) Wrexham Council are long standing members of the NABMA, a long established organisation that represents the interests of organizations who operate retail, wholesale, and livestock markets. A senior consultant from NABMA was invited to visit Wrexham and spent half a day in June 2012 reviewing the Markets with the Commercial Estates Manager. In summary, the report supported the view that this Council should carryout a full strategic review of its markets to ensure they are fit for purpose and sustainable into the future. The report recommended that the review needed to cover the current offer, the future direction of change needed to modernise the markets. Given the lack of fresh food available in the existing markets the transformation of one of the smaller markets (General/Butcher’s) into a specialist food market was suggested. The report recommended that the review needs to consider the future viability of the People’s Market in terms of its location, construction, size and commodity mix and whether it is sustainable in the future. The report further recommended that the review needs to be done with an understanding of changing retails trends. The report concluded that there is specific cause for concern in relation to the sustainable future of the People’s Market and whether Wrexham can sustain three indoor markets. b) Shopper survey A shopper survey was undertaken between 8th June and 6th July 2012. Adverts were placed In the Leader newspaper before and during the survey to make the public aware. The survey was made available both online and in Council offices. In addition, Council Officers questioned surveyed shoppers on four separate dates. A total of 604 forms were completed. However, the people who participated were mainly older females; two thirds of those participated being women, 55% of the group being aged over 45 and over. Whilst those questioned reflects the people who were on the street at the time, ideally further work needs to be undertaken to obtain the views of younger people and a more balanced demographic.
- 27 -
A total of 77% of respondents told us they regularly shopped at the markets. The Butcher’s Market was the most frequented, with 73% of people shopping there, compared with 69% in the People’s Market. Surprisingly, the outdoor Monday Market was less popular, with 49% of those questioned shopping there. The General Market was least visited, with only 19% of shoppers using it. The majority of people said they shopped at the markets at least once a week and typically made small purchases of £10 or less. The majority used the markets during the morning and lunch time and did not wish to have the opening times extended. Replying to the Question; what type of goods and services do you currently purchase in the markets? The most popular answer (60%) was food. This is surprising, given the limited range of stalls. Cards and gifts were the next most popular purchase, with household goods, cleaning products and cosmetics/beauty also featuring highly Less than 20% claimed to purchase clothing, pet supplies, or eat in the various market cafes. In response to the questions what additional products or services would they like to see on offer in the markets? The majority indicated that they would like to be able to purchase local produce (64%) and fresh fruit and vegetables (56.8%) from the markets. Almost 40% expressed a desire to see ATM cash points established. Those questioned said they shopped in the markets for quality goods at value for money prices. This of course is a very traditional view, and may reflect values of the age profile of those people. However, as indicated in previous sections, the value end of the retail market is hugely competitive, being the territory occupied by supermarkets and value stores. Markets elsewhere have struggled to compete against this strength of competition.
What offers or attractions would encourage you to visit either of the Markets? Quality of Products
ShoppingExperience
SpecialistKnowledge
Value for Money
None of the aboveas I do not likeshopping inMarketsOther (pleasespecify)
- 28 -
The majority of shoppers surveyed were local people, with 72.1% travelling less than five miles to the town centre. A very high percentage (67.7%) travelled by car. In conclusion, the survey showed that there is a strong demand for food, particularly local produce to be a stronger feature of the markets in future. c) Market Traders consultation Consultation with the market traders was undertaken in both through a questionnaire and direct contact. Traders from each of the three markets, together with representatives of business groups who were consulted, all identified many common concerns. These issues related principally to a perceived lack of concern for the market by the Council and an inappropriate level of investment. Associated with this was a perception of poor maintenance, cleanliness, vacant stalls and insufficient promotion of the markets. It must also be said that at these discussions the traders also conceded some occasional failures on their part, including a underestimating increased competition from value retailers and the internet. Phase 1 Questionnaire The first phase of the consultation involved sending a short questionnaire to all traders in October 2012. In numerical terms the response was poor, with only 22 traders out of 65 submitting completed forms. In response to the first question ‘What makes shoppers come to your market?’ The majority of traders in both the People’s Market and the Butchers’ Market considered that a combination of personal service, value for money and the variety of stalls were the reasons that most of their customers use the markets. The next question was; what puts shoppers off? Empty stalls or stalls which were left unopened by traders were considered the most off-putting aspect. The problem being that the markets appear to be closed if any of the stalls is not open for business immediately upon entrance to the markets. Traders also wished they could improve their own stalls, but indicated that they would require support in carrying out the improvements, either financially or have work carried out for them.
The cleanliness and management of the markets was seen as a barrier to attracting customers. The need to clean the markets more effectively and to ensure that regular checks are undertaken, particularly at entrances and toilets, to ensure standards are being met was considered to be vital. Traders felt that this aspect is currently being neglected and needs to improve. The traders were all interested in additional goods and products being available in each of the markets. However, whilst historically, each of markets had a distinct character and theme, whereas nowadays the same, or similar goods are sold across the markets, they didn’t want to see each market being themed. Having identified the variety of goods as a key attraction for customers in question one, the majority felt that the diversity of offer should be retained. There was considerable interest in the provision of an ATM machine.
- 29 -
There were no clear responses to the impact of other Council projects that have been introduced to support businesses in the town centre. The Shoppa Hoppa was not widely regarded as having helped the markets and free afternoon car parking was only considered a help in the People’s Market and not the Butchers’ Market. The majority of respondents from the Butchers’ Market wanted the market to open all day on Wednesdays but there was no clear desire for opening hours to be changed in any other way. Overall, the market traders indicated that they would like to have better signage/maps located throughout the town centre, to have the markets open Monday – Saturday, to have the stalls upgraded and for empty stalls to either be removed or dressed and closed stalls to be made to open or moved so that the markets create a welcoming and vibrant atmosphere to attract more shoppers. They would also welcome more marketing and promotion being either provided or planned for them, with events taking place in the markets that would attract new customers. Phase 2 Discussions Phase two, in November and December 2012, consisted of face to face meetings in November and December 2012 with small groups of representatives from each of the indoor markets. In each case discussions began by trying to both identify what were the main problems and difficulties, and then considering how they could be resolved. At each meeting, Traders representatives emphasised the need for the Council to consider each market building separately, rather than just view them collectively as ‘the markets’ Concerns about day to day management, cleaning, maintenance and repairs were raised at each discussion, as constant and recurring themes. However, specific issues were different in each market; Traders from the Butcher’s market were concerned about access issues, being reliant for disabled access from the privately owned central arcade. Traders from the People’s market raised issues of poor lighting, security, encroachment of traders into walkways. Traders wanted to see the proactive recruitment of a more diverse group of traders - that might be expected in a retail tourist centre of significance. This was considered vital because the viability of that market is dependent on firstly making it resemble a market and secondly on the trader mix and uptake of stalls. It was agreed by the traders that an idealised composition of traders will not happen by accident. The Council needs to be proactive. Traders were happy to concede that different rental approaches would be needed for different types of business. Traders wanted to see the introduction of food based businesses. Traders from both the General and People’s Markets expressed an interest in the installation of stall canopies. This would bring different issues to each market, in that the General Market would require Listed Building Consent.
- 30 -
- 31 -
d) Consultation with the Town Centre Forum Consultation has taken place with the Chair of the Forum. It was agreed that a review of the Markets operation was needed, in the light of a changing retail scene. However, the Forum is in a difficult position, having retailers who are in direct completion with the markets. Consequently, at the present time the Forum have no formal view or opinion. e) Consultation with Federation of Small Business (F.S.B) The Council signed a formal protocol with the FSB in 2012 that makes a commitment to consult and discuss local issues. Regular quarterly meetings are now in place. That said, the FSB have no formal view at this time on the future of Wrexham Markets. However, the view of one member was that “Wrexham could learn from other Market Towns by majoring on the historical aspect of the Markets, whilst encouraging Local Craft, Art & Food Producers to take space in them, even having themed Markets and Antique Fairs. For the shoppers and traders alike Markets need to be warm, clean and organised. The People’s Market is a concrete boxy structure which seems very cold and uninviting. Having said this, let’s use its strengths as a place to have pop-up shops, art showcases, pop-up workshops and all sorts of things. We need to get creative, look at the space and see what it lends itself to”. Conclusion There is widespread if not universal support for the markets amongst the groups consulted. However, it is also widely recognised that the markets are at a crossroads. There needs to be a decision about the future scale and nature of operation. If the markets are to continue there needs to be an articulated vision for the markets, linked to a Strategy that will transform them and deliver the vision. A detailed business plan needs to be set out, showing how this transformation will take place.