Minutes:
Pursuant to its decision of 14th January, the Committee considered the undernoted report:
“1 Relevant Background Information
1.1 The Committee agreed that Deloitte present on their findings and recommendations for St George’s Market.
1.2 St. George’s Market provides a place to trade and grow for over 170 small businesses, including 6 shop units and a restaurant. It supports around 385 jobs and welcomes approximately 600,000 visitors each year. The total value to the Belfast economy is estimated to be approximately £15m p.a.
1.3 Deloitte was appointed to undertake a review of the market and develop options in relation to:
- Marketing and branding of the market. Market facilities.
- Achieving the right balance of categories of stalls/products.
- The effect of the layout of stalls within the market and how the layout could be improved.
- Associated operational issues and impacts.
1.5 Deloitte have completed their review, which involved:
- significant desk based research;
- two major workshops with approximately 120 traders plus three meetings with the Traders’ Committee and Council staff;
- completion of approximately 485 questionnaires from shoppers and traders;
- research into good practice at other markets including Leeds, Newcastle, Leicester, Bury, Spittal Fields and Borough; and
- a special meeting with Development Committee Members on 8 October 2013.
1.6 Their research and analysis has revealed a number of conclusions with regard to how we could improve St George’s Market. The overall headline conclusions are that St George’s is an asset for Belfast that is successful and enjoyed by both locals and visitors. A view recently endorsed by the award of the title of ‘Best Large Indoor Market’ 2013 by NABMA. Therefore any improvements will be working from a strong starting position. Additionally, the market provides a good deal for traders but its potential is not fully realised.
2 Key Issues
2.1 A full copy of the report can be made available upon Members’ request.
2.2 Specific conclusions in the report include:
- The customer base and operation of the market has evolved and is anticipated to develop further. This creates different pressures and requirements on the market staff.
- A good market layout will encourage shoppers to spend longer in the market and to buy more. Factors contributing to a good layout include:
o Creating zones of certain types of products.
o Colours or names for different areas of the market and clearly defined aisles should be employed to help shoppers find their way around the market.
o There should be reserved space for leisure, entertainment, demonstrations, and hospitality type activities.
o External space (such as stalls on the pavement) can be used to draw attention to the main market. There is scope to develop the space around the market.
- Shoppers value the quality and variety of food and the recreational and atmospheric elements of the market. This is different to what Traders supposed as they believed shoppers valued price as the most important aspect and hence that market improvements should focus on signage and marketing.
- A significant portion of shoppers (24%) do not buy while in the market despite staying for a reasonable length of time. There is scope for traders to encourage those shoppers, who already visit, to spend more money.
- There is some support among traders and shoppers to make adjustment to opening hours and trial an additional trading day.
- The market is highly rated by customers. 65% rated it as very good and 28% said it was quite good. Only 1% said it was poor.
- Most people surveyed felt that the Council should pay for any improvements though they did not think Council rates should be increased. There was some support from traders (57%) who said they may be willing to pay an increase in stall rental to fund market improvements. The average suggestion was for an extra £2/day per stall.
- Considering the size of the markets waiting list, St George’s location and the charges made in other markets, the rent charged to traders is relatively low. Any rental increases should occur alongside a plan for investment and operational improvement.
2.3 Officers will prepare more detailed proposals, based on the Deloitte list, for further consideration by Committee in due course.
2.4 Pricing Policy
1) Rental charges - In January 2010 Members approved an increase, of £1 per stall, in stallage and hire charges for a 2 year period from 1st April 2010 to 31 March 2012. There was no price increase in 2012/2013 as a result of the difficult economic trading conditions and in 2013/2014 the Development Committee, at its meeting on 19 February 2013, agreed that as a result of disruption within the city and the negative impact on traders that hire fees for stalls would not increase in the 2013/2014 financial year. It is recommended that the Development Committee increase hire fees for stalls by £1.00, from £13.00 to £14.00, for 2014-2015 with effect from 1 April 2014 notwithstanding consideration of the Structural Review of St Georges Market and any future investment and pricing decisions agreed by the Development Committee;
2) Payment terms – The majority of traders in St George’s are designated as ‘permanent traders’ and their stall space is guaranteed subject to abiding by the market trading terms and conditions. Once permanent, their business is expected to trade every weekend. Currently, if they do not trade (for any reason) they are not charged for their stall rental. We would like to change this so that permanent traders are liable for rental for the duration of their permanency regardless of absence.
2.5 The current budget proposal for the Markets, 2014-15, does not include provision for significant financial investment.
3 Resource Implications
3.1 As per Deloitte’s Executive Summary plus staff time to implement the changes.
4 Recommendation
4.1 Members are asked to note this report and agree that officers would progress the recommendations.
The Chairman on behalf of the Committee welcomed Mr. C. Mountstephen, representing Deloitte, to the meeting and he outlined the principal aspects of the findings of the review.
During discussion, a number of Members suggested that the distinctive character of St. George’s Market should not be impacted upon by any proposals which would be formulated. In addition, the Committee expressed its support, in principle, for the development of the market to incorporate Verner Street, together with the proposals to examine the opening hours and the feasibility of the market trading on an additional day.
The Committee agreed to adopt the recommendation as set out within the report and agreed to consider the proposed increase to stall hire charges later in the meeting as part of the ‘Scale of Charges 2014/2015’ report.