STOCKPORT MARKET & MARKET PLACE
Market Analysis & Strategy CBRE Report
December 2016
CONTENTS
1. Introduction ...... 2 2. Executive Summary ...... 3 3. National & Greater Manchester Trends in Market Provision ...... 7 4. How other local authorities and market providers have managed their assets? ...... 18 5. Consideration of the benefits and disadvantages of a food based offer, similar to that operating in Altrincham ...... 22 6. What a successful General Goods market would comprise? .... 26 7. How & where such a market might be provided within the town centre...... 29 8. The impact on the town centre offer as a whole ...... 38
APPENDICES A. Project Brief ...... 41 B. Decisions Required & Next Steps ...... 42
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Introduction
CBRE have been instructed by Stockport Metropolitan Borough Council (SMBC) to provide an independent report on the existing market in Stockport, currently based in the Market Hall and Produce Hall. The aim of the report is to specifically address the issue of the relocation of the general goods market and impact this would have on the wider Town Centre. In October 2015, the general goods market was proposed to be relocated, and replaced by a dedicated food and beverage market. However the proposal was met with considerable opposition by traders and local residents, and therefore has not progressed. The purpose of the report and agreed brief (Appendix A) is to provide an independent understanding of the following:
1. National and Greater Manchester trends in market provision 2. How other local authorities and market providers have managed their market assets? 3. Consideration of the benefits and disadvantages of a food based offer, similar to that operating in Altrincham
4. What a successful general goods market would comprise? 5. How and where such a market might be provided within the town centre of Stockport? 6. The impact on the town centre offer as a whole.
2 We have addressed the above questions in the following chapters. Further information and evidence-based analysis has been undertaken, which is provided within the report. Page
The final section of this report provides conclusions and next steps relating to the general
goods market in Stockport, and the wider market strategy. INTRODUCTION
Markets in the spotlight as a regeneration tool Markets are currently attracting some significant attention in the retail sector. Their entrepreneurial nature ensures they can provide a local and dynamic offer, which brings unique vibrancy to town centres. These aspects are increasingly becoming of interest to the public and private sector who see them as a means of increasing footfall and attracting new demographic groups. CBRE therefore see markets as having a key role as part of wider town centre strategies to add vibrancy and identity to retail environments.
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ExecutiveExecutive Summary
The executive summary covers the six key points requested by the brief and outlined in the introduction. When considering these points, it is important to set the context of the wider retail market. The previous eight years have seen a fundamental change in the retail sector due to changes in consumer preferences for products and also where they purchase them from. This has caused a polarisation of retailers towards ‘value’ or higher end goods. These changes have had a severe impact on town centres, especially ‘unmanaged ‘or poorly managed (lack of branding, marketing, tenant mix policy etc.) outside of shopping centres or retail parks. Markets are part of the retail sector and the have been especially affected because of their location in town centres, management and product offer.
1. National and Greater Manchester trends in market provision (Section 3) Markets data shows that many traditional, town centre, indoor general goods markets are showing declines in footfall, sales and occupancy. In contrast larger markets such as Bury and Manchester are proving resilient, whilst others are experiencing significant investment in recent years. The markets seeing decline are often ‘poorly managed’ due to the lack of a proactive approach to branding, tenant mix etc. Their goods offer is characterised as offering
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‘general goods’. Within this mix, low value household goods are showing declining
sales, whilst food and more niche offers are performing better. Page
An area of growth is ‘pop up’ markets (often outdoors or under semi cover) which trade weekly/monthly and focus on niche products or seasonal offers, such as food or handmade goods. The markets are being used as ‘event led’ footfall drivers. EXECUTIVE SUMMARY 2. How other local authorities and market providers have managed their market assets? (Section 4) Local Authorities are often ineffective as a retail asset manager due to their ability to lead change being blighted by trying to satisfy a number of objectives: regeneration, the traders etc. Ironically this stifles a market’s key strength, which is responding quickly to changing consumer preferences. Hence many markets remain unchanged for the last eight years whilst the wider retail market has seen a significant shift.
3. Consideration of the benefits and disadvantages of a food based offer, similar to that operating in Altrincham (Section 5) Food based offers in markets are experiencing growth, as evidenced by the number the markets operating a food focus. By its very nature, food and dining increases the ‘dwell time’ and attracts new visitors, and therefore has a transformational impact on the market and surrounds. This use therefore offers an ‘anchor’ for the other co-located traders. At Altrincham Market, a food based offer, has seen an increase in visitor numbers, car parking numbers and footfall. These factors have attracted new restaurateurs and retailers to the town and particularly around the Market. The specialist goods offers (which are themed by day) are also thriving due to the additional footfall. The disadvantages are the degree of permanence a food offer requires; stalls, seats, toilets etc. Thus displacing other traders or losing the ability to use the space for other
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Executive Summary
events. There is also a considerable cost of the fit out. Therefore, the process of leading a change of this nature can be highly controversial and carries a degree of risk.
4. What a successful general goods market would comprise? (Section 6) A successful goods market is increasingly difficult to define. At small markets, the varied offer has became too difficult for consumers to relate to. Trading potential has weakened in the face of better located and branded competition for each set of goods. The trend is therefore to develop a market that is located where the target consumer shops/visits, is well-managed and branded market day/event, which is focused around a theme (antiques, craft, food etc.). This creates a strong trading environment for traders regardless of the product on offer. This ensures that a market’s unique feature; their ability to respond quickly to consumer preferences, is encouraged by the prospect of good revenues for traders. Smaller traditional general good markets that are located in buildings lack the physical ability to move to the customer, thus creating pressure for them to become ‘destinations’, which requires a strong offer and reputation. As a result, open air/part covered markets can be far more effective with the added visibility improving trading. The requirement for traders to transport their stock acts as an incentive to optimise their offer.
5. How and where such a market might be provided within the town centre of Stockport?
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(Section 7) Page In Stockport, a successful goods market should be one element within a range of
market offers, which are well managed to adapt to consumer preferences in both their offer and location.
The strategy would be to add complementary specialist days such as a Farmers Market, EXECUTIVE SUMMARY Makers, Flea, Car Boot, Craft and Food and Beverage to the existing general goods offer. To optimise trading potential, the preference for these markets would be ‘pop up’ with each day/event targeting the best trading days, times and location. Potential sites would include Mersey Square and Warren Street (subject to Market Charter consultation). Furthermore, as plans for the Merseyway redevelop, an option may emerge to provide canopies, which could provide a semi-permanent home. Where appropriate, the current traders (indoor and outdoor) should be encouraged to trade on relevant specialist market days that would be located in higher footfall locations in pop up stalls, either open or under semi cover. To fulfil its potential, Market Place requires an anchor use which creates 12 hour a day, 6 days a week, footfall. A food and beverage offer is the logical anchor to achieve this but it should be supported by an events such as exhibitions, music and theatre and a market offer. There are options to use a number of buildings for this use, which includes the Produce Hall or Market Hall. We estimate that a food and beverage offer may take less than 5,000 sq ft of the 13,500 sq ft Market Hall building or the entirety of the Produce Hall. Regardless of the chosen location, the Market Hall must change to become more flexible to allow it be used for events or specialist markets on ‘non market’ days. We suggest the removal of the current stalls (some permanent ones would be screened),
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Executive Summary
which would require traders to remove their stock between trading days. This would have the benefit of ensuring traders reflect on the stock they are offering. The traditional trading days could also therefore be enhanced by co-location with events which provide footfall. To achieve the strategy set out above, a strong management is required for both the market and the wider town. We recommend an events/markets company is established who can work with the many stakeholders.
6. The impact on the town centre offer as a whole (Section 8) Markets in Stockport should be seen as a series of retail or leisure led events which not only benefit traders but help achieve wider Town Centre objectives of regeneration and unique local vibrancy. In turn, the town would become famous for its entire market offer. By having an events provision as a movable offer, SMBC are able to have a highly effective and changeable interventionist tool. Market Place is currently underperforming and being the major building, the Market Hall must have a use which makes a bigger contribution. We consider that markets should continue to play a major role in the building and the area’s future but it will have to be supported by a permanent food and beverage offer to act as footfall draw over the medium term.
Conclusions 5
Traditional market halls selling general goods have never been under such a threat. The Page way consumers shop and use town centres has changed and they must reinvent themselves to become relevant. However, if well managed and strategically deployed, markets can offer a unique and local EXECUTIVE SUMMARY vibrancy which all towns should be proud of. There is no doubt that decisions made by a council regarding markets are some of the most controversial. There are plenty of case studies showing either failed attempts where no change happens at all or where changes do occur but it is for the worst. In Stockport, no change is not an option. The traders underperform, which contributes to the Market Place under performing, which in turn means the town does not perform to its potential. The proposals set out above are designed to have a low impact on the current arrangements (traders will be able to remain in the Market Hall on market days), and there is no proposal to create a new building, which would be expensive to buy/build or operate. Furthermore, it provides future proofing by relying on the management to modify the market towards the needs of the town and the customers in the future. The major change in the town is the purchase of the Merseyway by SMBC, which now allows greater flexibility to locate markets around the Town Centre, which will maximise sales potential and attract/retain the best traders. Furthermore, for the first time, SMBC are now genuinely able to ‘manage’ the town centre’s offer. The outcome should be a famous set of markets, an active retail/leisure offer in the town but most importantly it allows Market Place to change. The similarities to Altrincham are obvious and events like Foodie Friday show there is underlying demand. Therefore implementing a Food and Beverage offer which provides a 6 day a week, 12 hour a day
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Executive Summary
offer would provide the anchor use that area needs. If located in the Market Hall, this would create a major anchor for the other market traders but there are other options such as the Produce Hall.
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EXECUTIVE SUMMARY
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11.. National & Greater Manchester Trends inin MarketMarket Provision
In the last eight years, markets and town centres have come under significant pressure due to changes in consumer preferences and retailers since the recession. A polarisation of the retail sector has occurred between those town centres and markets that are performing strongly or sustainably, which have strong tenant demand, versus those that are experiencing declining footfall and higher unit vacancies. These changes in the retail and market sector can be described through the following four headings, and these changes have resulted in significant pressure on markets:
Place of Sale; Promotion; Price; and Product,
PLACE OF SALE
Multi-channel retailing There has been a significant growth of online and multi-channel retailing, which now
accounts for 14.4% of UK sales. Online shopping has enabled a more convenient way of 7
shopping, especially for delivery or the more efficient click and collect service. This has Page
affected markets negatively, as they are generally unable to meet the consumer demands for convenience shopping due to generally being located off-pitch and limited range of products. Online retailing has led to growth of start-up businesses targeting this platform for retailing, whereas traditionally, they may have started in a market. The significant growth of craft industry businesses in the UK the attraction of selling online due to the convenience and low cost base has contributed to the decline in new traders entering the market sector therefore
affecting occupancy. IN MARKET TRENDS PROVISION R MANCHESTER
Out of town retail
The growth of this retail sector in the 1990s to present has been fuelled by time constrained 1. NATIONAL GREATE & consumers, seeking convenience shopping whereby they can obtain a diverse range of goods in a single location. This has led to declines in footfall in smaller retail centres, particularly affecting markets, which struggle to compete with the convenience and range of goods larger out of town retail shops offer.
Temporary lettings The impact on the high street and shopping centres from out of town retail, online shopping and changes to consumer preferences has led to a rise in unit vacancies. This has led to landlords targeting temporary lettings, using small businesses that may have traditionally been located in the market to locate in higher footfall locations. This has contributed to a decline in new stallholders in the market, as these new or smaller businesses locate in higher profile location in a shopping centre.
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1. National & Greater Manchester Trends in Market Provision
Promotion
Managed retail environments There is a hierarchy of retail centre performance in the North West. Those centres that have been well managed, flexibly changing their stores, reconfiguring units with a mix of mass market, value and convenience sectors have maintained footfall. Other centres, particularly town centres, are suffering from declining footfall, poor management, dominance of convenience stores and the exit of mass brands leading to high vacancies and lack of demand depressing rents. The impact on footfall trends in the town centre is felt more significantly by the markets. Particularly, well managed, modern retail space is attracting footfall away from the markets, which have generally lacked constant evolution to adapt to retail trends.
Marketing Strong branding and marketing by retailers has detracted footfall from markets, which generally have a lesser presence and established branding. Shopping centres and retailers are using pop up events to increase footfall and dwell time, assisted by retailers that have a strong online and social media presence.
Price 8
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Value retailers Value retailers have seen significant growth over the last 8 years, filling the vacant retail units left by mid-market stores. This has built on the success of the major supermarkets expanding since the mid-1990s. This has had a significantly negative impact on markets, which have traditionally offered more affordable products than the high street.
Product R MANCHESTER TRENDS IN MARKET TRENDS PROVISION R MANCHESTER Speciality goods Consumer spend on specialty, handmade products and food has particularly grown. Goods
that are purchased on a “one-off” basis, including from local producers has particularly 1. NATIONAL GREATE & grown, with consumers seeking alternative products to the high street. Alternative markets such as farmers, artisan / craft, have targeted this retail sector and have seen particular growth in recent years, separate to the traditional market hall. In contrast, consumer spending on more day to day goods has fallen. This has affected markets that are targeting a general goods focus.
Diversification of retail offer Current consumer retail trends are for experience focused, pop-up, themed events, which has led to shopping centres targeting food and beverage and leisure uses to attract footfall and dwell time, consequently increasing spend. This diversification of “pull” factors to the high street or shopping centre is attracting footfall away from the market.
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1. National & Greater Manchester Trends in Market Provision
NATIONAL MARKET TRENDS
Market Trends in the UK The informal nature of the sector has meant that there has been a lack of evidence to understand the performance of markets nationally. However recently, there have been a number of studies by CLG, NMTF and NABMA into the more recent decline of markets and their role in the wider context of improving the economic, social and environmental wellbeing of a town centre and population. Research by NAMBA has shown that there has been a marked decline in the number of markets, which could accelerate by 2020 unless intervention is made. A survey undertaken of market managers and operators to understand the current status of markets since 2008 found the following:
Trader numbers are generally declining or stagnating, with only 23% of markets increasing in the number of traders. This indicates that there is a lack of new traders entering the sector which presents future occupancy issues.
Shopper numbers are also declining, with 42% of markets reporting a loss of shopper numbers. This highlights that the majority of markets in the UK are experiencing competition from the retail sector resulting in the decline or stagnation of footfall to the market
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52% of respondents stated the average spend in markets is declining. This could be Page
related to a number of factors, such as shoppers purchasing cheaper goods, or the demographic shopping at markets has changed, with the higher socio-economic groups shopping habits changing, shopping elsewhere.
There has been a growth in the number of traders selling food, with only 12% of respondents stating this line had declined. These findings are shown in figures 1-3 below. R MANCHESTER TRENDS IN MARKET TRENDS PROVISION R MANCHESTER Figure 1 – Trader numbers 1. NATIONAL GREATE &
Increase in numbers Decline in 23% numbers 38%
No Change 39%
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1. National & Greater Manchester Trends in Market Provision
Figure 2 – Number of Shoppers
Increase 20%
Decline 42%
No change 38%
Figure 3 – Traders Selling Food
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Decline 12% Increase 30% R MANCHESTER TRENDS IN MARKET TRENDS PROVISION R MANCHESTER No change 58% 1. NATIONAL GREATE &
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1. National & Greater Manchester Trends in Market Provision
Figure 4 –Average Spend
Increase 9%
Decline No Change 53% 38%
The figures above indicate that the majority of markets are declining and are, facing a number of pressures since 2008, similar to the retail sector. These pressures facing markets are coming from the following sectors of the retail market:
Convenience retail
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Multi-channel retailing Page
Value retailers Out of town retail Temporary lettings
GREATER MANCHESTER MARKET TRENDS R MANCHESTER TRENDS IN MARKET TRENDS PROVISION R MANCHESTER We have undertaken a detailed analysis of 20 markets in the North West, to understand the current trends and performance. These have been analysed on the basis of the following four themes: 1. NATIONAL GREATE & 1. Financial Assessment 2. Operation 3. Accessibility 4. Product
Financial Assessment We have used rateable value (RV) at the 2015 valuation to assess the revenue generated by the markets to understand their financial performance at a stall level. We have compared Stockport to towns in the North West with a similar shopper catchment area. The table below indicates the RV of the markets divided by the number of stalls:
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1. National & Greater Manchester Trends in Market Provision
Average Rateable Value per stall (2017 draft valuation) LARGEST UK SHOPPER POPULATION RANKING AVERAGE RATEABLE VALUE PER MARKET (CATCHMENT SIZE) STALL Wigan New Market Hall 98th £4,642 Manchester Arndale Market Hall 4th £4,121 Preston Market 41st £3,904 Warrington Market 82nd £3,555 Bury Market 97th £2,630 Bolton 62nd £1,627 Stockport 54th £1,246 Source: VOA & Javelin The figure above indicates that Stockport is performing below comparable towns in the North West, particularly those with a poorer catchment size. Bury Market has over double the average rateable value (RV) per stall than Stockport, outperforming its catchment ranking due to its appeal to tourism. In comparison to Stockport, Wigan has an average stall RV, which is 272% greater than Stockport. In relation to Stockport’s catchment area, the market is performing below its potential as indicated by it having a lower rateable value than other Greater Manchester towns that have a poorer catchment area.
12 Of the 20 markets sampled, 8 showed a growth in their rateable value between 2010 - Page
2015. This can be partly attributed to the investment and regeneration operators have put into the market recently. This indicates this investment was required to intervene and ON improve the market as it had previously been performing poorly or below its potential.
Operation 90% of markets sampled are managed by Local Authorities whose management is often blighted by trying to satisfy a number of objectives: regeneration, the public sentiment to
markets, the traders, economic growth, financial performance and tourism. The role of the IN TRENDS MARKET PROVISIR MANCHESTER public sector has no doubt helped markets to stay operational but isolation from financial factors and consumer preferences can limit innovation in product offer. The ability to lead change is difficult, which makes Local Authorities ineffective as a retail asset manager in this 1. NATIONAL GREATE & instance. Ironically this stifles a market’s key strength, which is their ability to respond quickly to changing consumer preferences. Some authorities do have a proactive management regime which is either internally or externally led. It critically sees a tenant mix strategy being implemented (i.e. screening stall operators to avoid duplication and retain an attractive mix). This is supported by dedicated marketing, additional specialist market days and promotion. However, this is the exception to the trend seen in the North West. The outsourcing management is a means to reduce the conflict of objectives and focus the manager on improving the market. The number of operational days varies between those sampled, with 80% of markets operating at least 6 days a week. 55% of markets enhance this further with the use of specialist events to increase their offer and footfall, similar to the retail sector. Generally these pop up events are temporary, using outdoor stalls. Temporary stalls allow the market to be located in higher footfall locations, and should the retail pitch alter, the temporary stalls have the flexibility to relocate. This allows the markets to bring the product to the
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1. National & Greater Manchester Trends in Market Provision
consumer, allowing stalls to compete with convenience retailers, rather than requiring the consumer to come into the market hall. In the case of Stockport market, the number of stalls, trading days/times, specialist events and the management are all performing below what should be expected of a town if its size. It will be interesting to watch the progress of the interim manager over the coming months.
Accessibility From our study, the majority of markets are operated from purpose-built market halls in the 1970s-1980s or shopping centres, when the markets previously were moved to higher footfall locations. The change in retail pitches has resulted in the majority of markets being located in secondary locations. Despite the growth of online retailing, the majority of markets have a poor online presence. More successful markets such as Altrincham, Urmston, Bury and privately operated markets have a strong online presence that links to the overall branding of the market, its products and the town centre. Shown below is the Makers Market case study which shows a type of market that is thriving in the North West. It is focused around the theme of handmade goods, targets the customers the traders need and is well promoted for the rotated trading days.
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MAKERS MARKET (POP-UP) CASE STUDY Page
Description Makers Market is a street market that is privately owned and managed. The owners, Niche Ventures Ltd, work alongside councils to deliver the markets in prime locations – often the primary retail areas in towns.
IN MARKET TRENDS PROVISION R MANCHESTER The market is classed as ‘pop-up’ because it moves between 11 locations throughout Greater Manchester with one or two markets per location per month.
1. NATIONAL GREATE & Location & Situation The Makers Market moves between 11 locations throughout Greater Manchester (Cheadle, Knutsford, Eccles, Sandbach, Northern Quarter, Chorlton, Spinningfields, Uttoxeter, Middlewich, Didsbury and Lowry Outlet.
Trade Mix The Makers Market is an event bringing together food, drink, art and craft producers in the area. The market is heavily focussed on local/freshly made food, handmade goods/gifts and homewares.
In most of the locations there is live music or a DJ performing for the shoppers, picnic tables and deck chair seating areas near the street food vendors.
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1. National & Greater Manchester Trends in Market Provision
Opening Hours First Saturday – Cheadle First Sunday – Knutsford Second Saturday – Eccles & Sandbach Second Sunday – Northern Quarter, Manchester Third Saturday – Spinningfields & Chorlton Third Sunday – Spinningfields Fourth Saturday – Lowry Outlet, Uttoxeter & Middlewich Fourth Saturday – Lowry Outlet & Didsbury Management Privately owned and managed by Niche Ventures Ltd – work in conjunction with councils to secure prime retail pitches. Promotion / Marketing The Makers Market has its own website www.themakersmarket.co.uk as well as being widely advertised on the websites of councils of the towns in which the markets are held.
Twitter: @_makersmarket Facebook: https://www.facebook.com/MakersMaket/ Instagram: @_makersmarket
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PROVISION
IN MARKET IN TRENDS R MANCHESTER 1. NATIONAL GREATE &
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1. National & Greater Manchester Trends in Market Provision
Product The table below provides the results of a survey undertaken by NABMA. Their research sampled market manager’s opinions of what products they forecast to grow and decline in markets.
GROWTH DECLINE
Cafes Fashionwear
Takeaway / hot food Footwear
Handmade goods Electrical goods
Mobile phones and accessories Lingerie / nightwear and hosiery
Fruit and vegetables Books / magazines and stationary
Baked goods Leather goods
Chilled / deli foods Toys and games
15 Source: NABMA “Mission for Markets” Page
The declining goods are those which are prevalent in many North West covered market halls, which are often described as General Good Markets. These goods have been targeted by value retail, out of town shopping centres and supermarkets. In comparison, improving the food offer (growth sector) is a key focus for many indoor markets via refurbishments such as the St Johns Centre in Liverpool, Preston and Chester.
IN MARKET TRENDS PROVISION R MANCHESTER
North West Market Sample Analysis
All markets sampled offer general goods, food retail and food and beverage, with 20% 1. NATIONAL GREATE & offering artisan products additionally. Exclusively food themed specialty events are held by both local authority and private operators, which has increased footfall. Other popular themes are artisan / crafts, and flea and antiques by public sector operators. We have further analysed the frequency of these themes within the city or town centres. This is shown in Figure 5 below:
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1. National & Greater Manchester Trends in Market Provision
Figure 5 – Theme day frequency
Other Antique 20% 18% Flea 13% Exclusivel y Food 30% Farmers 10% Artisan 9%
The most common of the sampled markets is an exclusive food theme; 30% of pop up
themes are exclusively food, with the next pop up being antique (18%). Stockport reflects 16
this pattern, operating Foodie Friday and Vintage Village. Page Reviewing other privately operated markets, they have an alternative mix of themes to a general goods market. Figure 6 below shows the number of days each theme operates as a percentage of total number of days.
Figure 6 – Private or third sector operated market theme frequency
Other Antique Flea
4% 0% 0% IN MARKET TRENDS PROVISION R MANCHESTER
Farmers 1. NATIONAL GREATE & 27%
Exclusively Food 36%
Artisan 33%
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1. National & Greater Manchester Trends in Market Provision
The figure above indicates that artisan goods, exclusive food and farmers markets are the most popular, with no flea or antique markets being held. Comparing this evidence, it suggests that some of the sampled markets are diversifying their mix of goods, and adapting their offer to consumers’ needs, in line with retail trends. Overall, these alternative markets are holding 67 events a month, which is only slightly lower than the traditional markets, which operate 79 themed days. This shows that there has been a surge of alternative markets, which are particularly focused on sectors that have adapted to consumer preferences.
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R MANCHESTER TRENDS IN MARKET TRENDS PROVISION R MANCHESTER 1. NATIONAL GREATE &
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22.. How other local authorities and market providers have managed their assets?
MANAGEMENT AND RELOCATION Politically, decisions regarding Markets are among the most controversial due to public sentiment towards them and the ability of traders to publically oppose plans. Many market halls were built in the 18th century. As towns and cities have changed, the relevance of these locations has been increasingly tested, especially with the growth of shopping centre development in the 1960s, which saw a trend towards relocating markets into the centres. The trend of market intervention by Local Authorities has therefore followed a trend of trying to alter the physical location and/or specification. Management of the markets themselves is often neglected in favour of trying to change the physical attributes. This significantly increases the risk of the projects and without attending to the management aspects. The sections below look at how markets are managed and examples of relocations. Local Authority Management Markets have historically formed an important role in towns and cities through generating economic growth, offering affordable goods and opportunities for start-up and smaller businesses and a place for social interaction. Markets have traditionally been more footloose and flexible, with traders quickly responding to changes in consumer demand.
18 However this ability to react to consumer changes can be constrained by local authority Page
ownership. 90% of markets sampled are operated by local authorities, who are often faced with a range of conflicting objectives; financial, regeneration, economic growth, public
sentiment towards markets and tourism. In the context of the changing retail environment, IR ASSETS? this has proved challenging, as despite being a ‘managed environment’, they lack the ability to compete with asset managers at shopping centres and retail parks. The type of manager often defines the way in which the market is managed. Some Local Authorities retain the management in house, whilst others outsource this. The ability to separate the market from the council has the principal advantages that the manager is provided a set of clear objectives which cannot be easily skewed by council or market trader
intervention. This means the market can focus on achieving the goals that will drive success ERS HAVE PROVID MARKET MANAGED AND ES THE and sustainability, such as tenant mix and footfall. UTHORITI There are various levels of disaggregation ranging from a complete ‘outsource’ where the market is run as a private enterprise. For example, as is happening at Altrincham or is being implemented by private developers like Allied London and Peel. This compares to more flexible models such as Liverpool, which are run under management agreements A LOCAL HOW OTHER 2. where the Local Authority still have a degree of control. Stockport currently has an interim manager which again is a degree of outsourcing. The differences in the performance level of these types of arrangement can be seen through the public facing management. Below we have divided market management into categories to help demonstrate this analysis.
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2. How other local authorities and market providers have managed their assets?
Promotion and Management
Online presence To improve the accessibility of the market, some operators have improved their online presence. For example the Bury Market website has its own domain and is not hosted via the local authority website, providing easier navigation. In addition to markets profiling their traders online, some are also using their website to sell goods for added convenience for consumers. Accrington is using their online platform to sell their general goods, which are affordable, value products. Orders are delivered for free within a 3 mile radius, or using Click and Collect from the market hall.
Flexible space Markets are becoming more flexible, using temporary stalls for pop up events. Examples include Piccadilly Gardens, which Manchester City Council organise. This is a pop up street food and street craft market held three days every week. Other private operators are using markets to add vibrancy to their public space, such as Allied London with Makers Market at Spinningfields and Peel are proposing a food market at their next phase of Media City. Markets are also being relocated out of the traditional Victorian market halls and purpose built properties, to a more temporary basis. Stalybridge for example has relocated the
19 market out of the Victorian Market Hall, which is now a Civic Hall that is a multi-functional space and hosts the occasional market. Page
Branding Some operators have specifically targeted their branding, and in some cases rebranding AGED THEIR ASSETS? their website to help attract a wider footfall. The specific branding of the website is also replicated at the market, how it functions and looks, the types of traders, and social media presence. This helps to differentiate the market from the high street, so consumers can
clearly understand the offer and events. Examples include Urmston, Altrincham and MAN HAVE T PROVIDERS Levenshulme markets, which all have a stronger, more modern brand than other markets which do not have a clear identity and are hosted on the local authority website.
Specialist events MARKE AND UTHORITIES Some markets are using pop up events, to attract higher footfall and wider demographics to the markets. Stockport has been successful with the Foodie Friday event, which generates
a footfall of almost 12,000 people for only 3 hours of trading. The focus on creating an A LOCAL HOW OTHER 2. informal event and the vibrancy it adds is a characteristic that markets can have, which the high street find difficult to replicate. The best example in the North West are the Manchester Christmas Markets but care should be taken if trying to replicate this in Stockport as the demographics and ability to achieve scale are very different.
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2. How other local authorities and market providers have managed their assets?
Price
Reducing operational cost To improve the financial sustainability of the market, some have sought to reduce their operational cost and reduce vacant units by having more outdoor stalls. Examples include Urmston, whereby the number of indoor stalls to outdoor stalls is a ratio of 1:5, as outdoor stalls have a lower maintenance cost than the Victorian market hall. Also, Oldham has installed solar panels which are expected to reduce their electricity cost by £9,000 pa.
Operational days Operators are seeking to increase their operational days of more popular goods, to allow 6 days a week trading. Examples include Bury Market, whereby the Market Hall is operational 6 days a week with a mix of food retail, Food and Beverage (F&B) and general goods. However this is enhanced 5.5 days a week by the Fish & Meat market, and the outdoor market operating 3 days a week, which is predominantly food retail and general goods. Importantly, the types of goods are grouped, for ease of the consumer. This allows the shopper to more easily navigate the market.
Product
20 General goods Page
Markets are continuing their provision of general goods, however some are changing the number of operational days for these goods and have been relocated to outdoor stalls. S? Examples include Preston and Altrincham. Local authority operators such as Liverpool and Chester have also asked traders to reapply and adapt their stall to the new market. This has AGED THEIR ASSET helped to manage the type of products to prevent too much duplication, encourage entrepreneurship and group the type of goods for the consumer.
Diversification of product MAN HAVE T PROVIDERS Altrincham is currently the best example in the North West of produce diversification. A permanent food retail and Food and Beverage core offer, operating 6 days a week, has helped to target current consumer preference for high quality food and specialty craft goods, which has increased footfall in the market and town centre. MARKE AND UTHORITIES
2. HOW OTHER LOCAL A LOCAL HOW OTHER 2. LOCATION AND RELOCATION Across the UK and in the North West, there has been a history of relocating markets in the 1970s-1980s to higher footfall locations, often as part of shopping centres. However, in many cases these markets are now facing refurbishment or relocation projects due to the retail pitch changing again or the facility becoming too dated. We understand there are seven markets in the North West which are currently being relocated into buildings in higher footfall areas or trying to create ‘destinations’. This should benefit trade but the use of physical buildings creates the potential risk of having to repeat the exercise if the property does not continue to fulfil its role or the footfall patterns change. Despite these major property related challenges, the political process for relocation is
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2. How other local authorities and market providers have managed their assets?
incredibly difficult due to the requirement to work with the market traders to gain support for change. Examples include Warrington as part of the Bridge Street Regeneration, which will include a £10million new market hall, relocated from the 1980s market to a 50,041 sqft unit. The market will have fewer stalls and open up onto a new public square, which will be used for events and markets. The chief executive of Warrington Council described the project as the hardest thing the council had ever done due to the public scrutiny. Politically, the easier process is to refurbish an existing market. This is the trend in the north west with 10 markets under refurbishment. To help with the funding case, the refurbishment is generally linked to a wider town centre regeneration. For example in Preston, the Victorian canopy market is being renovated and will include a glazed market hall that will focus on fresh, local food. There will also be an outdoor trading space that will also be used for events and sale of general goods, with a seasonal market space.
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AGED THEIR ASSETS? T PROVIDERS HAVE MAN HAVE T PROVIDERS UTHORITIES AND MARKE AND UTHORITIES 2. HOW OTHER LOCAL A LOCAL HOW OTHER 2.
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33.. Consideration of the benefits and disadvantages of a food based offer, similarsimilar toto thatthat operatingoperating inin Altrincham
THE GROWTH OF THE FOOD SECTOR The food and drink sector in the UK is the largest single manufacturing sector in the UK, Street food pop-up markets are identified by NABMA as a successful market type. The market stalls selling ethnic or fusion foods are popular with consumers and tend to be located in high footfall locations, offering quick, convenient, high quality, alternative food. NABMA identifies that street food markets are particularly successful in urban areas with high footfall, such as office workers on a lunch break. This sector was predicted by NABMA surveyed traders to grow in 2015 and 2016. High quality street food meets the demands from consumers for food focus, speciality goods, with a unique shopping experience. The social nature of the shopper experience and alternative goods to a general goods markets creates an event and destination for shoppers, as an alternative to more formal restaurants, cafes and bars.
Food focussed markets As shown in the previous section, exclusive food themed events are the most popular market type used by public, private and third sector operators. In Greater Manchester, street food specific market currently operate at Altrincham,
22 Manchester Piccadilly Gardens and Stockport, as part of its Foodie Friday. Other markets
often include an element of street food such as Levenshulme, Manchester Arndale and Page Urmston. The attraction of street food offers a USP to markets and has proven to be TO THAT THAT TO popular. Manchester Piccadilly Gardens offers the most frequent street market, operating three days a week (Thursday, Friday and Saturday), supported by the high footfall in the city centre. OPERATING IN ALTRINC HAM BASED OFFER, SIMILAR
In Stockport, Foodie Friday has been a success in generating footfall. The event can generate a footfall of almost 12,000 people, with 8,000 people on average over a three hour trading period. By comparison, a Saturday is the best trading day of the market in terms of footfall, with on average footfall of c.9,500 over a 7.5 hour trading period. ADVANTAGES OF A FOOD Other markets in the North are implementing a food focused market strategy; examples include St Johns Liverpool, Rochdale, Ashton, Harrogate, Chester and Peel at Media City. These markets are moving towards a food focused market operating at least 6 days a week, with general goods provided flexibly on fewer days.
Altrincham Case Study
In the context of markets, Stockport has many similarities to Altrincham: an off pitch historic DIS AND OF THE BENEFITS CONSIDERATION 3. market hall; an offer that was not creating a draw to the area; a wider town that lacked a good quality food offer; a large part of the catchment who are not using the town centre and a weak town centre retail offer. The successes of Altrincham Market are well known, in terms of the Food and Beverage offer but also the wider benefits it has had for town. Therefore, the brief sought to look at what outcomes a similar model to Altrincham Market would generate for Stockport.
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3. Consideration of the benefits and disadvantages of a food based offer, similar to that operating in Altrincham
Description Altrincham Market provides a covered food and general goods market and indoor 180 seat dining area. The
two areas operate different opening times but are nonetheless well connected to one another both in terms of 23
physical location and atmosphere. Page
The covered markets provide a different offering on each market day with themed days held every few weeks TO THAT THAT TO e.g. ‘Friday Flea’. This mix of stalls allows the market to attract different customers on different days as well as allowing for repeat visits within one week to sample the different goods on offer. A typical week in the covered market is as follows:
OPERATING IN ALTRINC HAM BASED OFFER, SIMILAR Tuesday: Fresh produce, and; Artisan goods (jewellery/clothing/homeware etc.)
Thursday: Thrift and antiques, and; Fresh Fish ADVANTAGES OF A FOOD
Friday: Fresh produce, and; Farmers Market (every 1st Friday), or; Friday Flea (every 3rd Friday)
Saturday: ‘Traditional market’ – similar to Tuesday’s offering
THE BENEFITS AND DIS AND OF THE BENEFITS CONSIDERATION 3. Sunday: Specialist Market – different every week (rotating between: home, food, vintage and craft)
Background of Altrincham Market Following a tender exercise by Trafford Borough Council, a of strategy at Altrincham was implemented in 2014 when Nick Johnson and Trafford Borough Council agreed a refurbishment of the indoor market to create a dedicated food offer, which trades six days a week from 9am until 10pm and 9am Monday to Saturday and 9am to 6pm on a Sunday. The hall is set out with food stalls around the outside with 180 spaces in the central area for eating. The indoor market and the canopy are a similar size to Stockport’s Market Hall, with the indoor area occupying c. 5,000 sq ft.
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3. Consideration of the benefits and disadvantages of a food based offer, similar to that operating in Altrincham
The canopy area adjacent is used by market traders who are grouped by theme such as fresh produce, artisan, antiques, flea and specialist markets rotating on Sundays. The market is wholly managed by Nick Johnson as a commercial venture. He committed £200,000 with Trafford Borough Council committing £500,000 to pay for the refurbishment.
Impacts of Altrincham The change in the market has been seen as a major success for the town. The key success factors are as follows:
1. Over 7,000 diners are served each week. 2. It has attracted a demographic of the town centre that had stopped visiting. 3. Footfall is increasing in the town against a falling trend for Greater Manchester Town Centres. 4. The change in footfall has attracted new restaurants and retailers to the town. 5. The footfall 6 days a week and also in the evenings. 6. The trading environment for the existing market traders has been transformed.
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In greater detail, we provide some commentary on the above points: Page
Occupancy of car parks in Altrincham has seen a marked increased since the opening of the market. This TO THAT THAT TO coincided with a great deal of investment into the town’s infrastructure and improvements to the town’s car parking provision. The increased car park occupation indicates that there has been more people travelling into the town which, as it has coincided with the opening of the markets suggests that more OPERATING IN ALTRINC HAM BASED OFFER, SIMILAR
people are travelling to Altrincham to visit the markets.
The most significant effect the changes to the market have had is on the occupational demand in the town. This has been driven by consumers choosing to spend in Altrincham town centre again. Altrincham has an increasingly affluent catchment population. Previously a large amount of the town’s catchment ADVANTAGES OF A FOOD population would travel to nearby Hale, Knutsford and Manchester City Centre, now this affluent population are choosing to spend their shopping and leisure time in Altrincham town centre.
Perspective occupiers are being directed to the market quarter as this gives a greater perspective of the retail scene and strength of demographic in Altrincham. This has directly contributed to recent enquiries and lettings to a number of national brands. In essence it has bought the money back in to Altrincham by providing a USP. This has in turn attracted mass market brands back to the town as they can see the
spending potential of the demographic actually impacting the town centre. DIS AND OF THE BENEFITS CONSIDERATION 3.
Food and Beverage in the centre has seen the greatest increase though; Altrincham previously had very little in terms of a F&B offer. Since the opening of the markets there have been lettings to Le Bistrot Pierre, Nando’s, Bay and Banyan with a number of other operators keen to also take space.
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3. Consideration of the benefits and disadvantages of a food based offer, similar to that operating in Altrincham
Application to Stockport Physically, we consider that the installation of a food offer would be possible in the Market Hall. Applying this to Stockport, the Market Hall would require reconfiguration and the space for existing traders would be decreased with an area of over 8,000 sqft for other market and alternative uses. Whether the existing traders could trade on the same days would be at the discretion of market operator. Other local authorities are outsourcing their market operation or ownership to the private sector to more actively asset manage the market. In Stockport, the advantage SMBC has differs from other local authorities because of the role that SMBC now have across the Town Centre. For example, the food offer could be located in the Market Place and the management could be retained in house, thus allowing the existing traders to retained in a revised form. There may be a view that some people would be excluded by the price point which Altrincham operates at. Again, this is a management issue, with the ability to vary the price points via the type of food offered and utilising promotions during certain times. It is also fair to say that food is currently a very strong trend in retail but there is no certainty
of how long it will last and therefore the costs of updating the offer need to be considered. 25 A market concept does help to counter this because if stallholders are managed correctly Page the best ones will remain trading and new ones emerge to target new trends.
The benefits and disadvantages of a core food based offer are shown in the table below: THAT TO
BENEFITS DISADVANTAGES OPERATING IN ALTRINC HAM BASED OFFER, SIMILAR Increases dwell time in the town Requires a degree of permanence, limiting other uses of the Market Hall or Attracting greater footfall through Produce Hall. targeting current consumer preference
Offer would need to evolve to meet ADVANTAGES OF A FOOD Attracting footfall throughout the day consumer trends with breakfast, lunch and dinner offers Appointing a manager will require a Generates 6 days a week footfall and tender exercise therefore use of the building Reconfiguration of the buildings Greater average spend required thereby incurring short term
Attracts a wider demographic group capital requirement which may not be DIS AND OF THE BENEFITS CONSIDERATION 3. met through increasing rents Develops branding of the Old Town as a food and leisure destination May be politically controversial
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44.. What a successful General Goods market would comprise?
What is success for Markets? The definition of success for markets is often hard to articulate. Unlike other parts of the retail sector that are private sector owned, where objectives are financially driven, the markets sector is generally controlled by Local Authorities. For these organisations, there are often too many ‘success factors’ such as regeneration, preservation of buildings, tourism, media opinions and not making unpopular decisions etc. Therefore meeting some of these targets may constitute success but the market may full short of expectations when compared to other factors. As mentioned, this creates considerable inertia which negatively impacts on management, and therefore the outcomes for a number of stakeholders. We consider that this has caused the management of markets to lose sight of what should be the key objective; to create a successful and sustainable trading environment for traders. In turn, the other objectives such as tourism and regeneration will look after themselves. The markets which are run by the private sector operators provide examples of how markets can be very successful. The Makers Market for example is a commercially run operation in the North West which makes profit for the operator, creates successful trading positions for traders and as a result increases dwell time to customer visits. Other examples include themed market days, focused on antiques, crafts, food, such as Manchester, Altrincham and Bury. The figure below shows some of the success factors we have been able to identify during
26 our research: Page
WOULD COMPRISE?
GENERAL GOODS MARKET
4. WHAT A SUCCESSFUL
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4. What a successful General Goods market would comprise?
What is success for a General Goods Markets? General goods markets are a type of market which is now very hard to define. Our research has found wide disparities in the types of goods offered but also the amount of services, food and events which each one may offer. This variety can of course be a major strength, as will be discussed, but for the customers it can be challenging as it does not provide the simple retail offer/brand that is offered by say supermarkets or value retailers. The situation has similarities to Woolworths where the customer could buy all the products at alternative locations and the customer stopped understanding what it offered. When markets are indoor and/or in ‘off pitch’ locations they become even harder for the customer to understand, as they have to enter a browse through the stalls. Compared to a simple supermarket layout/offer where the customer is highly familiar, it can become difficult for market to compete even on price. As discussed, variety and the surprise of not knowing what the offer will be is a major draw for customers and tourists. In this regard, markets can become ‘destinations’ in their own right because visitors have an expectation that there will be a strong offer to sample regardless of what traders may be present. This is very powerful as it can therefore change areas completely, like the LX Factory in
Lisbon, Portugal where a huge industrial area has become a tourist attraction because of 27
the markets/retail/creative sectors it has attracted. This is a model which other developers Page
like Allied London and Peel are using in Manchester, where they are introducing markets to create the destination. But to do this, the market must develop a reputation and have the critical mass and frequency where customers can be confident that a visit will be worthwhile, WOULD COMPRISE? which takes time. The tenant mix will also be closely managed to ensure traders are current and responding to consumer demand. This contrasts with traditional general goods markets where permanent stalls offer traders less incentive to change their product as there is no need to GENERAL GOODS MARKET transport the stock daily. The North West has the obvious example of Bury where the 370 stalls provide extensive variety and customer draw from across the North of England. Elsewhere the major London markets such as Camden and Borough market have these types of following. 4. WHAT A SUCCESSFUL In comparison, markets like Stockport which only have c. 35 indoor stalls and 50 outdoor stalls do not have the same level of critical mass, offer or frequency to compete on this level.
Conclusion Our research has shown that trying to achieve a variety of success factors can become a major blockage for an effective market management strategy. In an attempt to do so, Local Authorities are preventing the markets from responding to consumer preferences, which we consider is the most important ingredient for a successful market. A successful market therefore:
Moves towards consumer preferences; Has a strong leading theme which customers can identify with;
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4. What a successful General Goods market would comprise?
Has a brand to match; Is well managed; Moves to where customers will visit; Or creates a reputation/offer sufficient to attract them to secondary location; and Is not necessarily in a building as that can often be detrimental due to operational cost
In comparison to the list below, the General Goods markets of the North West have a number of limitations. Management is the major issue as without strong leadership the trading group cannot easily move towards consumer preferences, will not be themed, branding is likely to be poor and this limits the ability to create a strong reputation. If the market is in a building then this prevents the ability to move to the customer and creates more pressure for the market to become a ‘destination’. This can be hard to achieve and sustain without the right offer, critical mass and continued reinvention. Re-orientating markets via a theme and creating/supporting the offer around this will become increasingly important. Therefore, in many cases in the North West, General
Goods Markets are likely to need division into themes or co-locations with other uses such 28 as a very strong food offer to drive footfall. Page
WOULD COMPRISE?
GENERAL GOODS MARKET
4. WHAT A SUCCESSFUL
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55.. How & where such a market might be provided within the town centre
The Desired Market? In Stockport, a successful goods market should be one element within a range of market offers, which are well managed to adapt to consumer preferences in both their offer and location. The general goods market must no longer be the sole definition of the town’s market offer. Markets in Stockport should be seen as a series of retail or leisure led events that not only benefit traders but help achieve wider Town Centre objectives of regeneration, dwell time and vibrancy. In turn, the town would become well known for its entire market offer. A General Goods market would have a place but change is required to its management, branding and consideration given to how footfall can be bolstered to improve the performance of the traders. The following sections set out how this wider strategy could be implemented and which locations the markets could be located at. A focused Market strategy As covered in the previous section, the success criteria can be distracting for Local Authorities and lead to inertia, which negatively impacts their management. We therefore consider that it is important to prioritise the actions and understand how they
link. The three principle actions should be to: 29
Match consumer preferences to the trader offer (themes and trading locations); Page
Actively manage/brand to sustain and maximise trading potential N CENTRE Where possible, deploy offer in areas of the Town which need animation. The rationale behind the actions above is that they ensure the traders are maximising their performance and the offer therefore will remain relevant. By pushing the offer towards VIDED WITHINVIDED TOW THE areas that need improvement (only where the offer can act as a draw), SMBC are using the strategy as an asset management tool for the benefit of the Town. In the diagram below, the outer ring reflects the direct and catalytic impacts which a MARKET MIGHT BE PRO
successful market offer in the town could create. . HOW & WHERE SUCH A & HOW . 5
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5. How & where such a market might be provided within the town centre
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NTRE D WITHIN TOWN THE CE
New Market Days and Existing Provision PROVIDE BE MIGHT KET Based on our research of other markets across the North West, it is evident that there are many different market themes, which traders can be grouped around. Cleverly, many
operators use the theme as ‘hooks’ to attract different types of customers to a market which MAR WHERE SUCH A W &
is often co-located with others. For example, a vintage market may be co-located with a 5. HO book and record fair but then promoted separately. The key principal is that operators are trying to create the highest level of actively interested footfall they can to maximise trader sales. It should be noted that Stockport has had ‘specialist markets’ located in other parts of the Town Centre such as Mersey Square but existing traders complained and under the Market Charter they were stopped. Providing these issues can be addressed, we consider that Stockport should consider the provision of the following market/events offers:
General Goods Food and Beverage Food retail Vintage
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5. How & where such a market might be provided within the town centre
Artisan / Craft Car Boot Book and Record Fair Makers Family Fun Day Design Community Market Furniture Teenage Farmers Charity Seasonal: Christmas, Halloween, Black Friday and Easter Flea
The majority of these are specialist markets which would run infrequently at around once a month or seasonably. The most regular markets would be the Food and Beverage which could run 6 days a week, which would provide the anchor use to co-locate market. Where the Market is strong enough in isolation or the location has sufficient footfall the market could operate in isolation and less often. Market Management SMBC have taken the step of appointing Markets Europe as an interim manager of the markets. CBRE have met with Market Europe and understand that they plan to make some
changes to the current market using their experience of dealing with other markets across 31
the UK and Europe. This includes working closely with the traders to ensure they are Page
contributing to the market via their trading hours, stall presentation and general offer. All of these things are incredibly positive as it asserts a degree of separation between the council and the traders which should lead to more efficient decision making and a better
performing market. THIN TOWN THE CENTRE This is linked to the next point but in the future strong consideration should be given to private sector party managing the markets at level of trader engagement. Wider Town Centre Events/Market Management The purchase of the Merseway Shopping Centre and the development of Red Rock means that SMBC are now the major owner and manager of the western part of the Town Centre. This provides a unique opportunity to begin managing the physical environment via events and promotions under a single objective but with multi-faceted responses via each asset. I.e. the marketing of Red Rock would be different to that of Market Place. WHERE & HOW 5. SUCH WI A MARKET PROVIDED BE MIGHT This management opportunity is not dissimilar those seen at other large shopping centres across the UK, which are managed by Asset Management companies who often sub contract events/marketing companies to run their events. In resourcing terms, the scope of the role is extensive and would require dedicated and skilled resources, which SMBC may wish to employ directly or outsource. We consider that the scope of the role would be as follows:
A strategic capability which creates an Events and Marketing Programme for the entire Town Centre
Events would include existing Town events such as the Christmas Light switch on but included a programme of new Market Days
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5. How & where such a market might be provided within the town centre
Liaison with Asset Managers of the physical asset such as Merseyway and Red Rock Budgeting and financial management of a complex budget, which would have contributions from a range of sources
The extent of the role that the manager takes in the arrangement of these tasks is to be debated as more efficiencies could perhaps be achieved by outsourcing tasks such as branding, marketing, direct market provision, events provision etc. Marketing and Branding Marketing and branding are critical to the success of the Market Strategy but also the wider Town Centre. A finding from our work has been the poor quality of marketing of markets across the North West. Sadly Stockport currently has a poor marketing presence for the market, with a confused message being delivered via the ‘Old Town’ brand, Market Place and the actual Market Hall. In particular, a separate website, more updates and a social media presence are vital. The step of creating an online trading platform for the sale of goods should also be considered as this builds brand, promotes local businesses and importantly encourages ‘Click and Collect’ which drives footfall. As noted above, the extent to which the management company lead an implement these aspects will be depend on the resource and skill sets available.
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Location for Markets Page The principal around location is that it must optimise trading potential for the traders, contribute to the town and not disrupt other stakeholders such as existing retailers. The location must also be highly visible so that the footfall is not wasted. We therefore THE TOWN CENTRE TOWN THE
recommend that the traders are located outside, under stall canopies where customers can see their offer directly. The location of the market provision should align with the strategy for the town centre, and form part of a wider town centre asset management. The location should be of benefit to T BE PROVIDED WITHIN the traders, the Market Place and Underbanks, and add to the wider strategic priorities of attracting and improving retail and leisure offer to the town centre.
The considerations are as follows: E SUCH A MARKET MIGH
The market themes and their location should contribute towards the marketing of
Stockport and a collaborative approach to the zoning of retail and leisure areas to WHER & HOW 5. attract footfall and allow clear navigation of the town centre by the shopper
Offer traders the option of trading in a higher footfall area such as Mersey Square, Town Square, Bridge Street/Merseyway/Warren Street junction and trading in the Market Hall.
General goods operate from a higher footfall location, with consideration of using outdoor, chalet style stores or self supported canopies to add to vibrancy on the high street
The general goods products have a synergy with the existing offer at Merseyway Shopping Centre. Therefore, there is an opportunity for traders to have stalls in this retail area, which should be considered as it will benefit traders to be in a higher
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5. How & where such a market might be provided within the town centre
footfall and competing with convenience and value retailers, and located closer to transport links including the bus station.
Visibility of the Market Hall from the main footfall areas is poor. Pop-up temporary stalls, approximately 20 stalls along Warren Street / Great Underbank / Bridge Street would improve visibility and help draw footfall up to the Market Hall. It will also have a lower operational cost and can be flexible to changing footfall. At present, the high footfall areas in the town are around Merseyway which would be the logical place to locate some markets. However, this needs to be balanced with the need to attract people to the Market Place. Secondly, some markets would no doubt benefit from the historical setting which the Market Place provides. Around the Merseyway, it is important that the markets do not obstruct the current retailers. Therefore, we recommend that within the existing scheme the Mersey Square and Warren Street are considered for market provision. Future market provision in other locations should be considered as part of the redevelopment proposals as the footfall patterns begin to change. For example, Heaton Square (new square between Red Rock and Merseyway) and Prince’s Street may become areas to consider. Use of a building Our research has found that Local Authorities place a significant emphasis on trying to
improve markets by altering the physical building by either a relocation or a refurbishment. 33
Both are very expensive and sadly the results are often disappointing in the medium term, Page
as shown by the amount of resultant relocations such as Chester, Rochdale and Blackburn. Where new markets are being launched there is a strong trend around ‘footloose’ outdoor TOWN CENTRE TOWN markets. Or where a structure is built, is it a canopy or lightweight structure which is highly permeable and visible from the outside. For example, Rochdale is proposing outdoor stalls for traders with a building which would PROVIDED WITHIN THE host the core elements of a food offer (outdoor seating would be key but weather dependent). CH A MARKET MIGHT BE MIGHT MARKET A CH 5. HOW & WHERE SU & HOW 5.
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5. How & where such a market might be provided within the town centre
34 Likewise, Preston is using canopies to provide semi cover, as shown on the image below. Page
OWN CENTRE OWN ROVIDED WITHINROVIDED T THE A MARKET MIGHT BE P BE MIGHT MARKET A 5. HOW & WHERE SUCH & HOW 5.
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5. How & where such a market might be provided within the town centre
Given the changes that are taking place in Stockport, the risk is that relocating or refurbishing an existing building will simply create another ‘off pitch’ market in the short term. We consider that an outdoor market that moves to the footfall is the best interim measure, which may become a permanent concept. An addition to this may be a number of ‘canopies’ in the Town that can provide cover for the market or other events. These have been seen at Altrincham in the image below:
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Future of the Market Hall DED WITHIN TOWN THE CENTRE The Market Hall is an intrinsic part of the Town’s build environment and its heritage. As a building, it is an asset to the town but its current use means is it not having the wider benefit
it should, and ironically it is not helping the trader’s revenue potential. ARKET MIGHT BE PROVI The building should continue to provide a location for markets as it continues the historic use and provides a perfect anchor building for the wider Market Place. At present, it is only regularly utilised 4 days a week and as the stalls are permanent, the ability to use the space
for other events is limited. By ending the exclusivity of use by the traders and removing the WHERE SUCH A M & HOW 5. permanent stalls, the market management team and SMBC would have the ability to manage the space more effectively. The space could be used for other events (notably on Sundays or Friday/Saturday evenings), introduce other types of markets and the process would also mean traders have to regularly move their stock, which adds greater incentive to optimise it for the customer. The markets that could be considered for the Market Hall would be those which have a sufficiently strong draw to attract customers firstly to Market Place and secondly indoors. Examples would include Food and Beverage, Antiques, Vintage etc. These markets could also be co-located with the existing General Goods traders to act as an ‘Event Led’ anchor which boost footfall. As shown in Section 5, the food and beverage use provides a 6 day a week, 12 hour anchor. If the Market Hall was chosen for this use at c. 13,500 sq.ft (with a food and beverage potentially requiring only 5,000 sq.ft) the remaining space could be
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5. How & where such a market might be provided within the town centre
used for pop up events or markets. Due to the nature of the use, the food and beverage would require an element of permanent stall provision. Some non-food stalls that have permanent features would need to be screened, to allow for flexible use of the space. How could this be implemented Change regarding markets is highly challenging and Stockport has seen the results of market trader opposition to proposals very recently. Our review has found that markets fundamentally can and do work. When they do, their impact can be spectacular for both the traders and the location. However, they must be allowed and helped to reinvent themselves. At present, Stockport’s market is underperforming for a town the size of Stockport. The major drawback is the location and the need to improve the offer to offset this is evident. Therefore, for the benefit of the traders and the wider town, the location of markets must be diversified and new a market type/offer (Food and Beverage) considered at Market Place to create critical mass. This could involve new uses in the Market Hall or it may not. This depends on whether it is considered that a Food and Beverage use would be successful enough outside of the Market Hall. Firstly, creating spaces for new markets would be requiring a consultation regarding the Market Charter. This will require a well-considered proposal about the type of market offer, when it will trade etc. It is recommended that this is worked on by a new market manager to
36 ensure the proposals are fully deliverable. Page
Secondly, SMBC need to consider in detail whether they deem ending the exclusive use of RE the Market Hall by the market as a potential option. It is likely that this decision would require a business plan around introducing other events and types of market. In particular a Food and Beverage use for Market Place is acceptable, and then how that could be provided. As discussed, there are a range of options for providing this use. Assuming the Market Charter issue is passed, the provision of markets around the Town could be a swift process, with Mersey Square and Warren Street providing the first logical
places as higher footfall areas. The markets could be curated by the market manager or WITHIN TOWN THE CENT PROVIDED BE T MIGHT outsource providers such as Makers Market invited to operate under their own brand. If non-exclusivity is an agreed way forward, then the market will need to undergo some refurbishment works to remove many of the permanent stalls. Due to the need for procurement and listed nature of the building, this could take some time. There would also
be a period of closure, which makes it imperative that alternative market locations can be WHERE SUCH A MARKE & HOW 5. established prior, to act as relocation sites for traders who would return to the Market Hall on trading days.
Conclusion In summary we consider the following points are the key factors required to defining the new market offer and successfully providing it in the Town Centre.
Stockport needs ‘better’ or more market days but which are clearly branded, themed and in the best locations or co-located with genuine anchor uses.
The overriding priority is to ensure that the traders performance is optimised. This will attract and retain the best traders and therefore create the best market.
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5. How & where such a market might be provided within the town centre
Good management is critical to identifying the consumer trends, establishing the market, branding/marketing, maintaining a strong tenant mix and having a good relationship with the traders. A third party provider could be key here.
Not all markets necessarily need a building to trade from. The Market Hall can and should retain a role in market provision but in a new flexible format which has a sufficient draw to attract customers to the ‘off pitch’ location or be co-located with a genuine anchor.
‘Pop Up’ is an overriding theme either in or outdoors as it fundamentally creates change and therefore vibrancy. The Merseyway areas provide strong trading potential for markets in Stockport. In the longer term, some canopy provision could be provided.
The existing indoor traders could continue to trade on existing days in the market hall, but only if there is an anchor use for Market Place, which is compatible.
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IN THE TOWN CENTRE TOWN THE IN GHT BE PROVIDED WITH 5. HOW & WHERE SUCH A MARKET & HOW 5. MI
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66.. The impact on the town centre offer as a whowholele
Overview Stockport must address two issues; firstly that its market offer is weak and therefore adds little to the town, and secondly that Market Place currently underperforms because it does not have a use that is creating a 6 day a week, 12 hour a day anchor use. The importance of markets to the town reached a new significance in April 2016, when SMBC purchased the long leasehold interest in the Merseyway Shopping Centre. This created a single ownership of the majority of the western part of the town centre. As landlord and Local Authority, SMBC now have a duty to make this area and the wider Town Centre a success. Markets and events are critical to retail destinations as they provided vibrancy which keeps attracting visitors and new retail and leisure operators. The emphasis on this aspect has never been so high with town centres and shopping centres seeing falls in footfall, retailers increasingly burdened by high property costs, and strengthening competition from online retailers. Therefore to attract and retain the best retailers the shopping environment must be optimised for the customer. SMBC need to see themselves as the asset manager of a major retail destination/managed estate like the Trafford Centre by Intu, Spinningfields by Allied London or Regent Street by the Crown Estate. At each one, the customer /visitors’ experience is constantly being reviewed and changes made to improve it. Importantly, these are rarely physical property changes but more subtle interventions such as car parking tariffs, pop up restaurants,
offers, events etc. 38
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What markets and events could bring A WHOLE A Fundamentally, animating the public realm around the town will improve Stockport’s brand and drive additional footfall. In turn this bolsters the town’s other uses. At Spinningfields in Manchester daily footfall is c. 14,000 but this increases to 25,000 when events/promotions are on. It has been shown by the Christmas lights events and Foodie TOWN OFFER CENTRE AS
Friday that Stockport can attract large additional crowds of in excess of 10,000 people. If events can be run on a weekly basis that increase footfall by similar amounts or more than this, it could lead to genuine changes in trading potential of the town. 6. THE IMPACT ON THE ON IMPACT THE 6. As an asset management tool, markets and events would be invaluable for SMBC as it allows them to direct activity towards areas of the town that requires it at certain times of year. 2017 is an important year for the town as Red Rock will not be completed to the latter half and the Merseyway redevelopment works will not have commenced. Therefore, to create change it must be done via activity in the public realm.
Food and Beverage and Market Place As discussed, we consider that the only use that can achieve a 6 day a week, 12 hour a day offer would be food and beverage. The example at Altrincham shows how powerful this can be and the catalytic impact is very strong. It can also fit well with the Town’s Food and Beverage offer, which is currently being developed via a dining offer at Red Rock with a number of niche restaurant offers opening in the Underbanks/Market Place area. How this type of use is integrated into the area is for further consideration. Options would involve using the Market Hall in all/part, and using other buildings around the Market Hall. Either way, having an offer which brings footfall to that area could see a major transformation of the area via new restaurants, retail, workspace and potentially residential.
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6. The impact on the town centre offer as a whole
The impact could also be wider as having an offer of that nature would make help reconsider their views on Stockport, which then changes business decision making on locations and where people may wish to live. Conclusion As discussed, markets should be seen as a vital part of a town centre retail offer which provides a genuine local differentiator. If located in commercially viable locations and well managed, they will optimise themselves and add value to the town. The catalytic impacts can be significant and the use of specifically food and beverage stall could reinvigorate the Market Place. Examples are show in the grey boxes below.
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A WHOLE A
TOWN OFFER CENTRE AS
6. THE IMPACT ON THE ON IMPACT THE 6.
Overall, markets and events provide the asset management tool which SMBC need and can now fully utilise which could, over time, totally transform the town’s perception.
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Appendix A – Project Brief
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PROJECT BRIEF
– APPENDICES APPENDIX A
CBRE | STOCKPORT MARKET & MARKET PLACE
Appendix A – Project Brief
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PROJECT BRIEF
– APPENDIX A
Stockport Market DRAFT Brief for Consultants DATE JUNE 2016
1. Background
1.1 The Council is considering the strategy for Stockport Market and Market Place. In October 2015 the Executive agreed to the ‘relocation of the current general goods market offer and the creation of an alternative high quality product in the market buildings, seeking to attract customers from a borough wide and regional catchment.’
1.2 The report in October outlined that detailed business cases to deliver this overall approach will be developed and brought back to Scrutiny and Executive for consideration. Consultation will also take place with a range of stakeholders as well as further engagement with Market Traders.
1.3 Since then there has been much work culminating in a draft report which indicated that these objectives could be achieved. However the proposal has also caused considerable controversy and Elected Members have asked for an independent report to address the issue of the relocation of the general goods market.
2. Key Requirements
2.1 The overall and principal purpose of this project is to provide an understanding of;
• National and local (GM) trends in market provision • How other local authorities and market providers have managed their market assets • What a successful general goods market would comprise • How and where such a market might be provided within the town centre • The impact on the town centre offer as a whole • Consideration of the benefits and disadvantages of a food based offer, similar to that operating in Altrincham
2.2 The following issues will, it is believed, need to be considered • Cost • Location • returns • affordability • management • promotional activity • indoor and outdoor stall synergies
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• Size/number of stalls • Trader mix • Quality of offer • Hours/days of operation • The Council’s broader Town Centre Regeneration proposals as set out in the Town Centre Development Prospectus 2014 • Consideration of a market offer in Merseyway or Redrock
2.3 The above list is not to be taken as exclusive and the consultant should use their own initiative to prepare a report which can guide the Council in making any future decision
2.4 It is accepted that CBRE may wish to sub appoint a market specialist to assist with the preparation of this report. However it is important to emphasize that a key requirement is to review the issue against the overall ambitions for the town centre.
3. Stakeholder involvement
3.1 It is important that this study is seen as independent and initially it is believed that no further stakeholder involvement is needed. However once published the report, it should be assumed will form the basis of discussion and debate with all stakeholders.
3.2 However it would be sensible to have regard to the existing public consultation which has been completed
4. Timescales
4.1 The Council is keen to develop this evidence base as quickly as reasonably possible. It is anticipated that a draft report should be available within 3 weeks of the commissioning meeting
Stage Date completed
Scoping TBC
Commissioning TBC
Draft report TBC
Final report TBC
5. Reporting requirements.
5.1 The report will be presented in the same format as the Merseyway Business Case
6. Fees
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6.1 Please confirm that your fees will be in line with the Stockport Alliance agreed rates
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Appendix B – Decisions Required & Next Steps
We consider that the following decision making process will be required to take the findings of this report forward.
1. Management of the market and creating new markets around the Town Centre. These two issues are most probably linked. We understand that SMBC will be seeking a new manager of the market in February and as part of the brief, the role would include advice regarding the provision of markets around the town centre.
Therefore a key criterion is a party that is appointed needs the track record in this type of delivery.
Secondly, SMBC must authorise the consideration of markets around the town as this will trigger a Market Charter consultant process.
Thirdly, to work in tandem, SMBC need to agree an organisational/procurement route for operating an events led strategy across the Town.
2. The implementation of a food and beverage use in Market Place and the extent to which this requires the use of the Market Hall. If SMBC agree that a food and beverage use is required in the Market Place, then there are
various options around implementation to consider. 42
1. It could be provided in all or party in buildings around the Market Place such as the Page Produce Hall.
2. It could form part of a revised offer (food and current /new markets) in the Market Hall, NEXT& STEPS
say 5,000 sq ft of the 13,500 sq ft building.
3. It could take the entirety of the Market Hall, which would require a relocation of the NS REQUIRED
current market offer. DECISIO
– OPTIONS APPRAISAL APPENDIX B To help understand the decision making process for Option 2, we have provided an Options Appraisal which summarises the risks involved. To ensure consistency, the end outcome of the Options are all to achieve a food and beverage use in the Market Place, which provides sufficient critical mass that fundamentally alters the performance of the location. The Options are as follows:
1. Do nothing and hope that the private sector delivers a solution 2. SMBC help deliver the use in one or more buildings 3. SMBC initiate a shared use of the Market Hall where the food and beverage is permanent and Markets use the remainder
4. SMBC initiate vacant possession of the Market Hall so that an operator could deliver food and beverage in the entire space
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Appendix B – Decisions Required & Next Steps
Options Analysis
OPTION DESCRIPTION LIKELY OUTCOME COST RISK
1 – Do nothing This is the baseline scenario, with no Market will continue to face pressures No capital cost from General goods market intervention in Market Place. of decline. New food and beverage SMBC may continue to see a entrants are unlikely to have the decline New occupiers may critical mass to change the receive support from No change in the perceptions of the area in isolation. SMBC Underbanks and Market No public disapproval or trader Place Market is likely to opposition but no step change in the require continued Area and therefore the markets area.
financial support town continue to 43 underperform Page
NEXT STEPS 2 – SMBC helps This scenario would involve the use of SMBC This option carries a high risk in the May incur significant Possibly some opposition deliver a food and owned building such as the Produce Hall and / sense that it may rely on one or more cost to fit out new from existing traders in beverage use in a or Blackshaws Café and perhaps other third operators creating separate food premises or buy out the Produce Hall building outside of party ownerships. It would require financial concepts. Despite being prominent, third party building DECISIONS REQUIRED & Less space to create the Market Hall support to one or more operators after none of the buildings have the owners – critical mass which may agreeing their business plan. The Market Hall prominence of the Market Hall Loss of the Produce be required to act as an would be retained in its current form. (Options 3 and 4). APPENDIX B Hall and other anchor use However, if the operators are buildings Operations may not be successful then this could be a strong as successful as hoped option as it would preserve the Market Hall in its existing form, but still create the critical mass required.
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Appendix B – Decisions Required & Next Steps
OPTION DESCRIPTION LIKELY OUTCOME COST RISK
3 – SMBC initiate a This option sees changes being made to the This would be a use of significant The requirement to General goods traders shared use of the Market Hall to allow a permanent food offer in scale, which might provide the critical invest in the fit out cost are unlikely to oppose Market Hall part of the building. Potentially c. 33% which mass required to attract additional for the new market use the changes to the would equate to 5,000 sq ft. If the remainder of footfall. and the removal of the permanent stalls. the Market Hall use was flexible, then the space existing stalls. As opposed to Option 2, the use is in There will be a dispute could accommodate other events. The aim the landmark building, which may The cost of promotion about which area of the should be for the building to be in use 6 days a increase its performance. and management of market is used for food week, 12 hours a day. Proposal is for SMBC to the new market which vs other uses. oversee management with one or more Providing that markets have been would be far more companies undertaking the direct management. introduced around the town and the Without strong intensive due to the traders have better trading leadership from SMBC flexible usage of the opportunities, the implementation or the market manager, 44 space.
could be delayed until the number of there may be too many Page
traders affected has decreased. compromises which means neither market
NEXT STEPS performs to its potential.
An operator of the food element may be different DECISIONS REQUIRED &
to the manager of the – market which may cause conflict. APPENDIX B
4 – Achieve vacant This option sees the relocation of the traders to This option carries the lowest risk that The costs are likely to Political and trader possession of the new markets around the town or an alternative a successful food and beverage offer be significant for opposition as it is the Market Hall for an market building if required. The Market Hall is can be created because it avoids any payment for same proposal made in operator to provide then operated by a specialist Food and of the management risks caused by disturbance made to 2015. food and beverage Beverage operator. two adjacent uses. The scale of the traders. Risk that a new built offer in the entire building means that a landmark use Potentially a new cost location for the traders space. could be created. for a building, if does not work and the
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Appendix B – Decisions Required & Next Steps
OPTION DESCRIPTION LIKELY OUTCOME COST RISK However, SMBC have attempted to required. town is left without a market. implement a similar strategy recently Cost relating to the and politically (driven by trader reconfiguration of the Number of offers for opposition) there is significant risk Market Hall entire food led operation associated with such a decision. may be limited and Likely contribution to therefore performance the operators costs for may be limited. running the operation in the first few years. Limits the ability of SMBC to use the space for their own events.
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Summary Of the options we consider that improving the management and encouraging the creation of markets around the Town is a must. NEXT STEPS
The second set of options relate directly to Market Place and the Market Hall. We do not consider that the ‘Do Nothing’ option is valid given that a lack of performance of the Market is holding back the area and the Town. We consider that a food and beverage use is the use which could transform the location and have a major catalytic impact on the Town. The question DECISIONS REQUIRED &
is that at what degree is the Market Hall is utilised to deliver it. Option 4 is the aggressive approach, which is likely to provide the best food and – beverage outcome but comes at significant political risk given the stigma attached to the last proposal in 2015. Option 2 carries more risk in terms of delivery of the food and beverage uses but could be investigated further. Option 3 is a strong compromise, which essentially would see the existing APPENDIX B market improved and re-orientated towards food. However, it still involves disturbance to traders and creates a risk of creating a compromise from which both types of market fail to reach their potential.