Memorandum from Western International Market Tenants'
Association (MARKETS 04)
Summary of Evidence
Traditional retail markets have been in decline for several
years. We believe this is not in the
public interest and every effort should be made to rejuvenate them. The basic cause of the problem, is that the
number of customers shopping at markets has reduced, to the extent that many
stallholders are not viable financially.
We suggest that government could help to make vendors profitable and
sustainable through such measures as:
· Development of a retail market's
advocate
· Infrastructure improvements
· 'Market Health Check' surveys
· Promotion of market halls in
southern England
· Encouragement of new entrants to the
industry
· Regulation of 'scoop' trading
1.0 Introduction
The Western International Tenants
Association, represents the 50 or so wholesalers selling horticultural produce
from the Western International wholesale market, in west London. Vendors at traditional retail markets
represent a significant part of the customers at Western International
wholesale market, so tenants are keen to see this sector prosper.
It is important to remember that
running a retail market stall is a commercial activity, which will only be
sustainable if acceptable profits can be made.
Many factors influence the business viability of stalls. In our evidence, we have tried to
concentrate on those that can be influenced by central and local government. To do this, we have followed the basic
layout of the committee's 'Call for Evidence'.
2.0 Traditional Retail Markets
Today
2.1 It is hard to find anyone who
does not agree that retail markets are an important part of Britain's commercial and social life.
Despite this, they have been in decline over the last 10 years, in terms of
both numbers and turnover. Stallholders
selling foods such as healthy, fresh produce, seem to have been hit harder than
those in such sectors as, clothing and fast foods.
2.2 We believe that the main
reason for this decline, has been the reduced numbers of consumers shopping at
retail markets. Key reasons for this
include:
a) They think supermarkets are cheaper.
b) It takes longer to shop at markets than in a
supermarket, where they can get all their needs in one place.
c) Weather conditions can put shoppers off (eg.
rain and cold).
d) Car parking is often not available nearby, or
too expensive.
e) Market business hours are not convenient.
f) Some market traders have a poor image, so
customers fear they may be cheated.
g) Concerns about food safety.
h) Believe the quality of goods in markets is
lower than shops/supermarkets.
i) Little advertising/promotion is done by
street markets.
j) Many markets lack facilities, such as clean,
public toilets and good lighting.
k) Street markets are not fashionable places to
shop.
It is important that any interventions in the retail market
sector, seek to overcome one or more of the above constraints and win new
customers.
2.3 New markets are often hard to set up, as
people do not want them near their homes and business. It can be done, however, as has been shown
by the rapid growth of certified farmer's markets and other fine food markets
in recent years.
2.4 There are several obstacles hindering the
successful business of existing market operators and traders with special
reference to their interface with government.
2.4.1 A lot of stallholders believe
that the activities of Local Government often has an adverse effect on
trade. Not only is local government
frequently the market landlord, but its policies on re-development, planning,
parking, environmental health and trading standards, also have a big impact on
street markets. When councillors vote
on these matters, we are sure they do so with the best interests of residents
in mind and certainly do not intend to damage their community street
markets. In many cases however, we
believe they are not fully aware of the impact of their decisions on the retail
market sector.
Many stallholders are not members
of trade associations. Where such
organisations exist, they are commonly badly equipped to represent
stallholders' interests to local government members and officers.
To try to avoid these problems, we
suggest a Street Markets Advocate should be appointed. The advocate's main task would be to look at
government policies and identify anything that could have an adverse effect on
local street markets. These areas would
be brought to the attention of government, in the hope that they can work with
the advocate to resolve possible conflicts, before the street markets are
damaged.
2.4.2 The infrastructure of many
street and other retail markets is outdated.
Government support is needed to improve this in such areas as:
§ Electricity supply for lighting,
refrigeration, cooking food, etc.
§ Water supply.
§ Provision of toilets with washing
facilities.
§ Dedicated parking for vendors' vans,
etc.
§ On site storage facilities for
traders.
§
Many improvements of this type would
benefit food hygiene and encourage more customers.
2.4.3 Some Farmer's markets have
used a form of market research called 'Market Health Checks'. These surveys have provided valuable
information on which market development can be based. We would like to see this technique tried in retail markets, to
see if it assists with their promotion.
(FARMA have considerable expertise in this field).
2.4.4 In northern England there are
some very successful retail market halls.
We believe that this sort of venture should be encouraged more in
southern England. Perhaps local government
there, could try to persuade landlords to use some of the empty retail space
that they have available, as market halls.
2.4.5 We believe that there is a
need to encourage more new blood into the retail market industry. Government could play a part in this by
preparing a guide to profitable trading in retail markets for new
entrants. The provision of training and
a mentoring service, would also be valuable.
2.4.6 Scoop selling, sometimes
called bowling, has become a popular feature of fruit selling in retail markets
over the last few years. In this system,
the stallholder displays small bowls filled with a variety of fruit, all at a
fixed price, often £1. Customers can
then select the bowl of their choice at the stated price, without the fruit
being weighed. There is an urgent need
for this practice to be regularised under weights and measures legislation.
2.5 In
our opinion, specialist markets, such as continental and farmer's markets, have
had little impact on traditional markets.
As each type of market relies on its unique selling points however, we
feel it is best not to try to integrate them.
3.0 Social and Economic Effects
Retail markets are economic ventures
and safeguarding their profitability must be the main priority. In addition, however, they can have valuable
social benefits, including:
· Providing access to fresh, local,
healthy , value for money food.
· Assist consumers to eat 5 portions
of fruit and vegetables per day.
· Act as centres for social
interaction.
· Toursim.
· Provide outlets for specialist
ethnic foods, which supermarkets often do not supply.
Where markets are not owned by local
government, we feel these social benefits are more likely to be overlooked.
4.0 Realising the Potential
of Traditional Retail Markets
There is great scope for local
government to support retail markets more effectively, including the point
outlined in 2.4.1 to 2.4.6 of this paper.
The main need is for local government to regards its retail markets as
important assets of their area, to be embraced and nurtured. Traders feel this is not always the case at
present.
5.0 Planning and Licensing
Issues
The licensing of markets is not an
area where we can claim expertise.
The licensing of individual
stallholders varies a great deal from local authority to local authority. It has been suggested to us that it would
be helpful if a license issued by one
local authority, was valid nationwide for similar trading. This would enable stallholders to take
advantage of opportunities outside their own area from time to time.
January 2009
