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Directorate of Health and Community Services Markets Strategy Annual Classifications: Internal Enclosures: Report– 2013/14 1 Background 1.1 The following markets are located in The London Borough of Hackney (‘the Borough’). Ridley Road Broadway Market Hoxton Street Kingsland Waste Well Street Goldsmith Row Chatsworth Road 1.2 Over 800,000 people visit Hackney Markets per month, making markets key to the Borough’s communities. Postcode surveys completed in 2013 suggest that over 98% of shoppers in Hackney’s markets reside within the Borough. 1.3 The Markets and Street Trading Service (‘the Service’) is responsible for the licensing of ‘street / market trading’ and ‘shop front trading’ in the Borough. The Service was transferred to the Head of Parking (Public Realm) effective from 1 June 2009; the department is now called, ‘Parking and Markets / Street Trading Services’. 1.4 In July 2010 the service approved a strategy to enhance the effectiveness and efficiency of its market operations and to ensure that the Borough’s markets are sustainable. This is reflected in the key strategic work packages that comprise the strategy and these are both long and short term. Since this date, various projects have been rolled out improving both the day-to-day operation and footfall into the Borough’s markets. 2 Objectives 2.1 General objectives of the Markets Strategy over the 5 years from July 2010 are to: Ensure legislative and statutory compliance across the full range of business activities within the Service’s remit. Build satisfactory financial accountability, including the regularisation of income and costs. Develop a comprehensive Data Management Strategy. Develop a more comprehensive Property Management Strategy. Continuously improve stakeholder engagement and consultation practices. Improve communication and public access to information. Introduce initiatives to improve operational management, leadership and support for members of the Service. Develop and deliver projects in response to service related issues and to refine current operational capability. 3 Key Achievements 2013/14 Overview £90k savings were found at Ridley Road Market by reducing the subsidy paid by the Council; this was achieved by reviewing and improving waste services. Trader fees and charges were reviewed in July 201. A comprehensive study of Ridley Road and Hoxton markets was completed in November 2013. In December 2013 all the shop-fronts in Ridley Road were replaced giving the market a new lease of life. The container yard used by traders for stock storage at Ridley Road Market was replenished with new containers. After the initial period of investment, Hoxton Street Market has now established an association and elected representatives that have met with Market Service managers to discuss the ongoing development strategy. The Council procured new stalls for Hoxton Market and placed storage contains to secure them in, on existing unused council land. In February 2014 the Council went out to tender for a concession contract for the management of Broadway Market. A review of the Council’s operational manual which govern the market was completed. Broadway Market’s area of operation was extended following on from a public consultation, the results of which were endorsed by the Council in Q3 of 2013/4. Relationships with traders and the respective Associations were improved by creating formal meetings for feedback and ideas sharing; this is ongoing. 4 Ridley Road Market 4.1 Ridley Road Market is the most visited in the Borough, however the Service’s annual budget forecast a deficit of £284K, which means it is heavily subsidised by the Council. We aim to break even or at least reduce this surplus by 2016/17; we will do this by: Increasing customer footfall. Reducing operational costs, particularly those relating to waste. Increasing the number of traders. 4.2 A number of work streams have been put into place to help the Council and the Ridley Road Market Trader’s Association (‘RRMTA’) achieve our joint aim to improve the market’s deficit of which a summary has been provided below. A. Waste Minimisation 4.3 A progressive Waste Minimisation and Savings Strategy was developed and agreed in a joint partnership between the Markets Service, Waste Services, and the RRMTA. As traders reduce their waste production and increase recycling activities, the aim of this work stream is to reduce Council resources operational at Ridley Road Market. In Q1 of 2013 £34k worth of saving were made by reducing resources. We have since been able to save a further £20k by reducing the disposal costs. Further savings can be found in Q4 from a reduction in the afternoon / evening resource on a weekday, with the exception of Friday. In total we realised a saving of £90k. 4.4 The success of this strategy depends on the stallholders managing their waste in the afternoons and early evening and in particular when packing up their stalls. They will need to leave their pitches tidy with all waste neatly packed having been separated ready for collection. If waste is not presented for collection as required and ends up being strewn across the market, then it will remain there until the final clearance of the day takes place. 4.5 Time banding for commercial waste produced by businesses on Ridley Road took effect on the 28th of October. Businesses on Ridley Road now have two time bands each day, one in the morning 06.00 – 07.00 and one in the evening 18.00 – 19.00, during which waste and recycling will be collected. This work stream was initiated to ensure that market waste operational fees are not inclusive of those produced by said businesses, who have separate trade waste agreements with the Waste Service. Total Total Total Market Market Audit Total Total Waste & Market Market Residual Recycling Period Pallets (t) Recycling (t) Card (t) Food (t) Waste (t) Rate March 2013 13.29 3.5 8.41 2.44 27.64 69.6% July 2013 10.9 5.6 6.6 2.9 26 74.6% December 12.4 0* 16.7 3.2 32.3 48.3% 2013 April 2014 11.5 5.56 4.47 1.32 22.85 80.4% Proposed RIDLEY ROAD Proposed Actual Actual Roll Roll Out Comments Waste Minimisation saving Saving Out Date Date Reduction Measure (£) Stage 1 (07/01/13) - £34,228 Initial audit failed. Repeat Saturday resource reduction 1x Loader audit undertaken moving £34,228 13/04/2013 £34,228 22/07/2013 during day time & Team Cabac Crew in schedule back. Saturday the evening resource now reduced. Saving reduced to maintain resource levels Stage 2 (13/04/13) - £22,422 on Fridays as audits show 01/01/2014 (New Reduction in labour and loader costs £22,422 22/07/2013 £18,117 trader’s compliance with proposed) PM shift guidance reduces during busy times therefore impacting on operation. Saving reduced to maintain resource levels Stage 3 (22/07/13) - £22,422 on Fridays as audits show 01/01/2014 (New Reduction in labour and loader costs £22,422 04/10/2013 £18,117 trader’s compliance with proposed) AM shift guidance reduces during busy times therefore impacting on operation. This will be Stage 4 (16/10/13) - £23,070 Reduction £23,070 16/10/2013 £23,070 audited against in in vehicle, labour and loader costs March 2013 Stage 5 (13/12/13) £24,819 This will be Potential for removal of 1 x Evening £24,819 13/12/2013 £24,819 assessed in Street Washer Mon - Fri March 2013. SUBTOTAL TOTAL £126,961 £118,351 B. Study of Ridley Road Market 4.6 The Retail Group were commissioned in October 2013 to conduct a study of both Ridley Road and Hoxton markets. A detailed report was presented to the Council in November 2013. Within this study the following points were assessed: Market customer satisfaction via a survey, which included suggestions for improvement by respondents. Postcode study to ascertain where shoppers and visitors to the market reside. Shopper profiling using the ACORN system of consumer classification. ‘Pinch points’ where people were inhibited from accessing the market. Traders surveyed for their opinions separately from consumers. Benchmarking with leading markets in order to identify best practise solutions to service issues. A detailed summary of these findings follows below: The commodity mix was more than adequate. The market offered a wide range of products and goods which was appealing to the diverse range of shoppers. The Market is served by a good bus network which makes the market very accessible. The Market is also served by 2 overground stations, although additional signage at Dalston Junction promoting the market should be put up. Of the 520 postcodes identified 69% of visitors came from 11 postcodes. E8 (Ridley Road area) made up 1/5 of responses suggesting visitors to the market were predominantly local. Of this 69% of visitors (represented by the red area on the map below) a more detailed cross section of specific locality was produced: o Dalston o Hackney Downs o Haggerston o Regent Estate The remaining 31% of visitors to the market (represented by the orange area on the map below), were identified as coming from the following locales: o South Hackney o Kingsland o Stoke Newington o Manor House 4.7 Shopper profiling suggests that there are 2 core types of visitors to Ridley Road: Rising Prosperous and Urban Adversity. According to ACORN, ‘Rising Prosperous’ can be summarised by the following factors: Professionals with degrees. Young, childless, 35 years old on average. Financially aware. Average earners, without a car. High reliance on the internet particularly for social networking. According to ACORN, ‘Urban Adversity’ can be summarised by the following factors: Low income, lone parent.
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