REASONS FOR DECLINE
19. Judging by the evidence we received, there are
a number of factors contributing to the overall decline of the
market sector, with probably the most important being increased
competition from supermarkets, other alternative cheap retail
outlets and now also the internet. Jean-Paul Auguste, Chairman
of the long-standing European-wide private market operator the
Geraud Markets Group, told us that:
Historically, markets had not many competitors. They
were in city centres and life was easy. Now it is a business.
It has to be managed as a business, publicly or privately, but
it has to be managed as a competitor. When a market is not adapting
to that, it has the risk of losing the competition.[26]
Simon Quin, Chief Executive, Association of Town
Centre Management (ATCM), commented that:
[…] the brave new world of supermarkets and
the brave new world of more immediate shopping took over from
markets. Markets that have been the backbone of our town and city
centres and indeed the very reason that many centres exist for
hundreds, if not a thousand years in some cases, in almost one
generation were lost or neglected.[27]
The Western International Tenants' Association, which
represents wholesalers in west London and hence has an obvious
interest in the viability of its traditional retail market customers,
gave a number of reasons why consumers might favour alternative
retail outlets. These included a perception that supermarkets
are cheaper, the fact that it is quicker to shop in one store,
the convenience of supermarket parking and opening hours (which
are particularly important for people working full time), a perception
that the quality of goods in shops and supermarkets is higher,
a perception that traditional retail markets are not fashionable
places to shop, and better facilities (eg toilets, lighting).[28]
Other submissions drew up similar lists. Michael Felton added
payment by credit card and the provision of trolleys (which matter
a lot to older people and those with young children), and highlighted
in particular that "the discounters—Primark; Poundland;
TK Maxx; Wilkinsons are a growing threat [to traditional retail
markets]—again selling a vast range of goods competing directly
with the traditional market and providing a relatively comfortable
shopping arena."[29]
As one market trader posted on our web forum:
As supermarkets have grown in size and quantity they
have also adopted all things that customers like about markets,
10 years ago, if you wanted fresh fish, you had to go to the local
fish market. Supermarket meat was prepacked, as was the veg. To
ask for certain size or portions markets were the only place.
This has now changed to suit the needs of the customer.[30]
20. Several submissions referred to the sheer juggernaut
power of the supermarkets which have, over the past 20 years or
so, gained a stranglehold over sales of household goods and groceries
that has decimated all forms of independent retailing. Consultancy
firm Quarterbridge, for instance, argued that:
Shops and market stalls that sold preserves, dry
goods, tinned goods and the like are no longer viable because
of supermarkets' ability to undercut them by buying-in long shelf-life
stock in bulk, direct from the producer. Retail consolidation
has forced many traders out of the industry and left the consumer
reliant upon a limited range of retailers and their procurement
and pricing policies—not a healthy situation.[31]
One market trader posted on our web forum:
Our large Sunday market has just been refused a license
to renew its planning permission because the entry and exit roads
are classed as dangerous […] today we have learnt that Tesco
has been given permission to build a new store on the very same
site. 9 Tescos, 4 Somerfields, 2 Sainsburys, 2 ASDAs, within a
7 mile radius of us and 2 more Tescos being built, is there any
wonder no other trader has a chance of survival?
Several submissions also made the point that the
internet had become an alternative means of exchange for both
prospective market customers and market traders. St Albans Council
commented that "many years ago the market stall was the first
opportunity for business for such entrepreneurs as Alan Sugar,
Jack Cohen (TESCOS) and Marks and Spencers. It is the Internet
which offers that opportunity now",[32]
whilst Derby Council wrote that "we are aware of at least
three traders moving completely to their successful online sales
business—hoover bags, toy cars and toy bears."[33]
21. A second, related factor is that consumers have
higher expectations from their shopping experience today. This
poses a particular challenge for outdoor markets, especially those
that do not also contain an indoor element that can still attract
customers when the weather is poor. As Professor Sophie Watson
pointed out "typically, those that have no cover, which would
probably be the vast majority of markets, really struggle through
the winter months."[34]
Vale Royal Borough Council similarly observed that "today
open markets are out of favour as most people today will not shop
outdoors unless the weather is good—markets cannot survive
on 3 or 4 months of good trading—so sadly the days of open
markets are numbered",[35]
though there is a caveat that "the one exception to this
is Street Markets." Even more fundamentally, customers appear
increasingly to want an easier shopping experience and market
stalls, where customers need to be more pro-active and knowledgeable
in terms of quantity, type of cut, weight, etc., may sometimes
be too challenging for today's time-pressed shopper.
22. A third, perhaps more avoidable, factor concerns
town planning decisions over the last 20 years or so. A number
of contributions stressed the damage done to city markets from
unsympathetic city centre redevelopment which had effectively
marginalised the market, for instance by relocating it outside
the new city centre. Other unhelpful planning decisions cited
included pedestrianisation of the market area, thereby making
it harder for customers to access the market and leave with their
shopping as they have to travel further from bus stops and car
parks, and decisions to create large out of town retail outlets.
As the Retail Market Alliance explained in their evidence:
Regeneration of our towns and cities often results
in a shifting of the commercial/retail centre, leaving markets
isolated. Equally, regeneration can result in dispersal of the
market's traditional catchment population. The result is shoppers'
'footfall' being moved away from the traditional retail markets.
Regeneration can also negatively affect the accessibility of markets
by diverting public transport away from traditional markets, and
by increasing the availability of car parking (sometimes free
or subsidised) as part of their developments.[36]
Meanwhile, on our web forum, one market trader remarked
"it is difficult to see how to encourage people to drag their
bags of food shopping through pedestrianised streets to get to
their mode of transport."[37]
Indeed, there appear to be a range of transport-related issues
that act to stack the dice against markets, including parking
regulations, metering, yellow lines, and so forth, making it difficult
for shoppers and traders to park close to the market site.
23. Even where planning has taken account of the
local market, it has not always been a success. We saw, for example,
in Leicester the legacy of a rather grim, unpopular purpose-built
indoor market which the council was now looking either to improve
or simply replace. This is by no means an isolated case. As
the Retail Markets Alliance observed in their evidence, "many
traditional retail markets that were 'modernised' in the 1960s
and 70s now appear as concrete bunker-like buildings that do not
appeal to modern shoppers."[38]
24. A fourth factor, again commanding a high degree
of consensus, is that too often local authorities, who are responsible
for the running of nearly all of the indoor English markets, and
a good proportion of outdoor markets, have neglected their markets.
The weight of evidence suggests that, whilst a few, mainly northern,
local authorities have consistently supported and developed their
markets, more often than not market decline can be attributed,
at least in part, to a lack of investment and/or operator expertise
from the responsible council. In his evidence, Michael Felton
contrasted the lack of investment in markets by local authorities
to "the regular refit by chain stores/supermarkets. Local
authorities have been unwilling or unable to invest in the markets
other than a 'tarting up' or essential structural repair."[39]
Chris Hurdman, an Oxfordshire market trader, also bemoaned the
lack of local authority reinvestment, commenting that "markets
on which I trade earn in excess of £60,000 per annum for
providing floor space on a free car park. I am unaware of any
reinvestment."[40]
The Retail Markets Alliance reflected not just on a lack of investment,
but also of other more intangible factors:
The lack of investment in markets consists of more
than just capital. The failure of many local authorities to recognise
the strategic value of markets, coupled with local government
reorganisation, has had some negative consequences. Many local
authorities see markets as a problem that needs to be controlled
and managed, rather than a vibrant part of community life. The
management responsibility for markets within local authorities
varies significantly, ranging from Regeneration, Economic Development
to Parks and Leisure, and even Printing. The calibre of manager
can also vary considerably, and the common 'regulatory' approach
taken by many authorities means that they lack the retail and
commercial skills necessary to understand, attract, promote and
support the businesses that operate within their markets. There
is also a general lack of effective marketing and promotion of
markets.[41]
A fifth factor cited in some evidence is the slowness
of the market industry to adapt to change. The Retail Market
Alliance itself acknowledged that "many traditional markets,
market operators and traders have failed to grasp the need for
change".[42] One
example of the need to adapt more quickly given by a number of
contributors is the lack of credit card facilities on markets.
Another is the suggested failure of the market industry to promote
itself, contrasted—perhaps unfairly—with the slick
advertising of supermarkets and shopping centres.
25. A final factor contributing to market decline
is a lack of new traders. For market consultant Michael Felton
"the shortage of traders is evident from statistics supplied
by local authorities retaining us; the number of advertisements
in the trade press (Market trader/Market News) seeking further
traders; the unwillingness of the younger generation to follow
in their parents' businesses—principally the excessive hours."[43]
He also cited problems obtaining loans from banks and the decreasing
number of wholesalers willing to trade with small retailers as
further disincentives.
The outlook for markets
26. Given the range of factors identified above as
contributing to the general decline of traditional retail markets,
it is clearly legitimate to ask whether they have a long-term
future in England. However, the bulk of the evidence we have received
suggests that the battle is by no means lost. Ann Coffey MP,
Chair of the All-Party Parliamentary Markets Group, who told us
that "I think markets have the opportunity to transform themselves
into something that is part and parcel of 21st century
life",[44] was by
no means an isolated voice. Joe Harrison, Chief Executive of
the National Market Traders' Federation, affirmed that "there
are prime examples throughout the country where markets are still
successful and still thriving."[45]
Michael Felton concluded that, although the market industry will
continue to be subject to extreme pressure, "the tradition
will carry on even so as the younger (under 40) population will
accept that market shopping while not comparable with other retail,
has considerable benefits."[46]
27. Some of the evidence received has even suggested
that the worst is over, that markets are already on the comeback
trail. Simon Quin, Chief Executive, Association of Town Centre
Management, proposed to us that:
[…] just as we all threw out our antiques in
the 1960s but are now collecting them again, markets are beginning
to come back into fashion in certain ways in certain cases. People
have rediscovered the distinctive nature of what markets offer,
the uniqueness of what they have.[47]
Several witnesses, including Simon Quin, Anne Coffey
MP and Graham Wilson, saw opportunities for markets arising from
the recession, on the assumption that consumers are starting to
place greater emphasis on value for money, and also that, when
loans are harder to come by, markets offer new businesses a more
affordable way of starting off. Chris Hurdman observed to us
that since the recession "I have found, myself, that we are
seeing more people on my markets."[48]
28. The key, as emphasised to us by a number of witnesses,
is whether individual markets are able and willing to adapt to
changing circumstances, including the increased competition, to
ensure that they remain destinations of choice, now that they
are no longer destinations of necessity for most people.[49]
Whilst our witnesses did not underplay the obstacles, they could
point to the longevity of markets, and to recent and ongoing change,
as evidence that a number of markets would continue to adapt successfully.
29. Jean-Paul Auguste, Chairman of Gerauds Market
Group affirmed that "there are experiences on the continent
and here of markets adapting and they are easily successful."[50]
Several witnesses including Nick Rhodes suggested that, whilst
the increased competition from other low-cost retailers meant
that non-food sales were in decline in many markets, food sellers
were finding it easier to retain their niche. As further evidence
of adaptability, Professor Sophie Watson highlighted the example
of Rotherham Market combating the elements through "sail-type
umbrella covered markets",[51]
whilst Derby Council concluded that "there are fewer traditional
market products […] but there are also more specialist products
sold and services offered in markets. For example beauty/tanning/nail
bars, tattooists, alternative therapy, travel companies, legal
advice/age concern and phone unlocking."[52]
On a similar theme, Tot Brill, Executive Director for Transport,
Environment and Leisure Services, Royal Borough of Kensington
and Chelsea, observed that "for us the fruit and vegetable
traditional bits of the market have been in decline, but Golborne
Road Market has recently become a success with the growth of a
North African market there."[53]
We also heard during our visits to Leicester and Ridley Road (Hackney)
Market how markets can renew themselves by selling to and from
new ethnic communities. Ridley Road Market in particular has
drawn on successive waves of new immigration over the course of
the last century.
30. Professor Sophie Watson even suggested that under
some circumstances markets can seek to gain from the proximity
of supermarkets, arguing that where the supermarket and the market
"are quite closely intertwined spatially", as in Central
Milton Keynes, "quite often people will move between the
market and supermarket and the shops around. So the physical proximity
of a market to other retail outlets can enhance the market."[54]
Finally, for the Government, Iain Wright MP, then Parliamentary
Under Secretary of State, Communities and Local Government, told
us why he is optimistic for the future of markets:
I think good, active town centre management, incorporating
a whole range of things, as I said, whether it is retail, whether
it is cultural, where it is providing information about government
services, can be done in markets […][55]
31. The
situation as regards traditional retail markets in England today
is complex. There is evidence of prolonged decline coinciding
with the growth of supermarkets. But there is also evidence of
continuing success for some in all types of market. There is scope
for optimism for the future provided that local authorities and
other key stakeholders are willing and able to rise to the challenges
that markets will continue to face.
2 Ev 63 Back
3
Ev 62 Back
4
Sophie Watson with David Studdert, Markets as sites for social
interaction Spaces of Diversity, (Bristol 2006). Back
5
Ev 153 Back
6
As above. Back
7
Ev 138 Back
8
Nick Rhodes, First National Survey of Retail Markets, (
Manchester, 2005). Back
9
Then retail market adviser to NABMA, now Head of Leicester Markets
and Enterprise, Leicester City Council. He was also a witness
to this inquiry. Back
10
First National Survey of Retail Markets, Summary Headline
Statistics. By comparison, last year TESCO reported UK sales of
over £41.5Bn. Back
11
First National Survey of Retail Markets, Conclusion Back
12
Ev 151 Back
13
Ev 99 Back
14
Ev 63 Back
15
Q 92 Back
16
Q 101 Back
17
Q 25 Back
18
Q 140 Back
19
Q 196 Back
20
Ev 113 Back
21
As above. Back
22
Q 140 Back
23
Ev 56 Back
24
Ev 59 Back
25
Ev 131 Back
26
Q 262 Back
27
Q 53 Back
28
Ev 61 Back
29
Ev 64 Back
30
Web forum post by Jane52, March 22, 11:40AM. Back
31
Ev 128 Back
32
Ev 69 Back
33
Ev 72 Back
34
Q 31 Back
35
Ev 76 Back
36
Ev 99 Back
37
Web forum Jane52, March 22, 11:40AM. Back
38
Ev 99 Back
39
Ev 64 Back
40
Ev 81 Back
41
Ev 99 Back
42
Ev 97 Back
43
Ev 64 Back
44
Q 22 Back
45
Q 50 Back
46
Ev 68 Back
47
Q 53 Back
48
Q 111 Back
49
See also Ev 129 Back
50
Q 262 Back
51
Q 31 Back
52
Ev 71 Back
53
Q 236 Back
54
Q 26 Back
55
Q 335 Back
