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  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 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 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 o o

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 o Kingsland o 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.  In social housing.  Not qualified or low levels of education.  Crime and vandalism is an issue.  Low internet usage.

4.8 Reasons for customers visiting the market are illustrated in the following table:

Reason for being in Percentage the area Response Shopping 42% Shop at the market 21% Live nearby 17% Work nearby 9% Meeting friends 5%

Of those surveyed, satisfaction at the Market was high; visitors were generally more satisfied than dissatisfied. Findings of the most prominent opinion from each survey respondent is illustrated in the graph below:

4.9 Footfall at the following entry points to Ridley Road Market were analysed:

Point 1 – Kingsland High Street. Point 2 – Market Main entrance. Point 3 – Junction with Colvestone Crescent. Point 4 – Ridley Villas. Point 5 – Entrance at St Mark’s Rise.

The graph below represents the findings of this study:

4.10 The traders survey produced the following findings:

 Products sold:

4.11 From the graph above Clothing was predominately the largest commodity sold followed by ‘fruit and veg’.

 The Average Transactional Values of individual sales (based on trader responses) are illustrated as follows:

1.1 Typical ATV 1.2 Response

1.3 Less than £5 1.4 51% 1.5 £6-£10 1.6 32% 1.7 £11-£15 1.8 7% 1.9 £16-£20 1.10 4% 1.11 £21-£30 1.12 - 1.13 £31-£50 1.14 - 1.15 £51-£75 1.16 - 1.17 £75 plus 1.18 3%

4.12 Trader Satisfaction

Of those traders that responded to being asked to rate the following services on a scale of 1 (poor) to 5(good), waste and cleansing rated the highest.

1.19 Aspects 1.20 Rating

1.21 Waste / cleansing 1.22 3.82 1.23 Stall quality 1.24 3.44 1.25 Customer friendly 1.26 3.40 layout 1.27 Standards of 1.28 3.28 presentation 1.29 Proximity to footfall 1.30 3.17 1.31 Market management1.32 3.04 1.33 Opportunities for 1.34 new 2.98 traders 1.35 Signage / information1.36 2.72 1.37 Events /promotions1.38 2.54 C. Variable Charging Proposal Consultation

4.13 The Markets Team have worked closely with the RRMTA to maximise customer footfall into Ridley Road.

In December 2013 a public consultation was held for the creation of three trading zones. It was proposed that the fee for a license varied between zones to encourage take up in locations which would otherwise be empty, for example St Mark’s Rise. The consultation also proposed a free/ discounted trial scheme, to encourage new traders by helping reduce the start up costs of their business and giving them the opportunity to generate more income, for an initial period.

4.14 The three proposed zones have been characterised by:  Location (distance from Kingsland High Street).  Type of trade (i.e. commodity sold by trader).  Customer footfall levels. A survey of occupations levels in these three areas is shown below:

Area No. of Average Average % Pitches number of number Vacant stalls of stalls Occupied Vacant Kingsland 58 46 12 21% road area (zone 1) Middle area 48 32 16 33%

(zone 2) St Mark’s 63 37 26 41% Rise area

(zone 3)

4.15 The following charging mechanism has been developed based on zonal placement:

Zone 3 (introductory fee Trading Days Zone 1 Zone 2 for 6 months*) Monday to Current Proposed Current Proposed Current Proposed Thursday price £ price £ price £ price £ price £ price £ Non Fruit & Vegetables 16 30 16 16 16 5 Fruit & Vegetables 18 35 18 18 18 10

Friday or Saturday Non Fruit & Vegetables 32 50 32 32 32 (10*) 12 Fruit & Vegetables 34 55 34 34 34 (15*) 24

5 Broadway Market

Broadway Market Extension

5.1 The consultation ran between 23 May and 21 June 2013 and was extended twice the first for two weeks and then for a further six weeks to 19 August 2013 following an unforeseen issue with the freepost return address used for the consultation.

5.2 The Council consulted with local residents and businesses in the surrounding area to Broadway market and a total of 575 consultation packs containing a booklet explaining the proposal, a questionnaire and a map of the proposed location for the market extension were distributed twice. There was also an option to email the Council at [email protected] to leave comments and complete an online survey on the Hackney website for homes with multiple residents. Residents and businesses were specifically asked:

“Are you in favour of the proposal to extend Broadway market trading into the ‘Westgate Street Triangle’ area on Saturday only, between the existing market trading hours of 07:30am – 6:00pm, as outlined in this consultation document?”

5.3 In summary a total of 102 responses were received, 71 respondents (70%) said yes and supported the proposal. Five people (5%) did not answer and 26 (25%) of respondents said no. The majority of respondents were in favour of the Broadway Market Extension and felt that it was a great idea. Both the extension and Broadway Market were formalised during the Council’s designation exercise completed in February 2014. (Please refer to section [X] for further information).

6 Hoxton Street Market

A. The Development Project

6.1 The Development Project for Hoxton Street Market began on 11th May 2013, responding to a steady decline of temporary traders at the market over a number of years. The team developed a strategy to incentivise traders to come back to Hoxton Street Market; this included the appointment of a dedicated development manager who has overseen the provision of new market stalls, a reduction in licence fees and a publicity and events campaign.

6.2 The initial period of this project saw a sharp increase in new traders joining the market throughout the summer, this has now settled back into a steady but slower increase of 1-2 new traders on a weekly basis. Many new traders find that the market is not right for them and therefore do not stay longer than 1 or 2 weeks but a number have found the market a good platform for their business and have been trading at the market on a weekly basis since the launch of this project in May 2013.

6.3 On average the number of pitches filled on a weekly basis has increased from 25 to 65, this has improved the appearance and atmosphere of the market, driving customer footfall up.

6.4 A new storage container was also put in place, just off Hoxton Street. The container now houses stalls that we plan to purchase and rehire for a lower daily cost than the current system.

6.5 A group of Hoxton Market traders are in the process of creating an association, which would go a long way to creating a good working relationship with the council and help bring representatives to the Advisory Board Meetings.

6.6 We have had great success with the social media and branding of the market, we now have over 1500 followers on Twitter and 600 likes on Facebook, these numbers grow very consistently. We have begun advertising with local publications such as Made In and Hoxton Radio as well as industry publications such as Market Trader News and ILoveMarkets.com. Currently we also have flyers distributed every Friday evening at busy stations in and around the borough.

6.7 Market events have been identified as key to boosting the profile of Hoxton Street Market; two events that have been executed so far are:

Hoxton Vintage Variety Fair - In association with Hoxton Hall, this has involved working with local residents to gather images of Hoxton Street from their childhoods to create an exhibition that will be launched with a drinks reception, live music, tea dancing and street theatre on Saturday 16th November.

Hoxton Street Market Fashionable Christmas - In December 2013 we engaged the services of, ‘The Stylist Rail’ to host a larger scale version of their regular pop-up 2nd hand clothing market in Hoxton Street. This event was accompanied by Christmas carollers and other live music as well as some street theatre.

6.8 The Markets Service aims to purchase up to 150 stalls (subject to demand) for optional hire to traders operating at Hoxton Street Market on Saturdays, as a retention incentive; the stall hire will be included in the pitch hire fee at no additional cost. The stalls will be stored in a council owned yard off Hoxton Street, is erected and dismantled each market day by a local community group and is managed by a newly established traders association and market inspectors.

6.9 In w/c 28 October 2013, the Council worked with Community Links to introduce 10 new stalls to Hoxton Street Market for a 4 week period, the stalls were run by college students selling their own products as part of an educational project.

6.10 The Retail Group’s study of Hoxton St Market, found:

 The Market serves local needs.  Development of the market is visible and needs to continue to ensure consistency.  Access to the market is limited.  Of the 500 postcodes identified 47% of visitors came from 9 postcodes. N16 (Hoxton Street area) made up 1/6 of responses suggesting visitors to the market were predominantly local. Of this 47% of visitors (represented by the red area on the map below) a more detailed cross section of specific locality was produced: o Shoreditch o Hoxton

The remaining 53% of visitors to the market (represented by the orange area on the map below), were identified as coming from the following locales: o De Beauvoir o Essex Road o Cannonbury o Haggerston o Hoxton

6.11 Shopper Profiling suggests that there are 2 core types of visitors to Hoxton Market: Struggling Estates and City Sophisticates

According to ACORN, ‘Struggling Estates’ can be summarised by the following factors:

 Low income, lone parent.  In social housing.  Not qualified or low levels of education.  Money predominantly spent on children.  Focus is on pubs, betting and music.

According to ACORN, ‘City Sophisticates’ can be summarised by the following factors:

 Professionals with degrees.  Young, childless, 35 years old on average.  Financially aware.  Average earns, without a car.  High reliance on the internet particularly for social networking.

6.12 Reasons for customers visiting the market are illustrated in the following table:

Reason for being in Percentage the area Response Live nearby 31% Shopping 19% Work nearby 15% Shop at the market 10% Meeting friends 8%

6.13 Of those surveyed, satisfaction at the Market was high; visitors were generally more satisfied than dissatisfied. Findings of the most prominent opinion from each survey respondent is illustrated in the graph below:

6.14 Footfall at the following entry points to Hoxton Street market were analysed:

Point 1 – Arch (Nuttall Street). Point 2 Iceland. Point 3- Shenfield Street.

The graph below represents the findings of this study:

6.15 The traders survey produced the following findings:

 Products sold.

6.16 From the graph above Clothing is the largest commodity sold. The Average Transactional Values (based on trader responses) are represented in the table below:

Typical ATV Response Typical ATV Response

Less than £5 30% £21-£30 6% £6-£10 39% £31-£50 6% £11-£15 3% £51-£75 - £16-£20 - £75 plus 3%

6.17 Trader Satisfaction

Of those traders that replied, when asked to rate the following services on a scale of 1 (poor) to 5(good), waste and cleansing was rated the highest.

1.39 Aspects 1.40 Rating

1.41 Waste / cleansing 1.42 3.93 1.43 Opportunities for new traders1.44 3.50 1.45 Market management 1.46 3.43 1.47 Customer friendly layout 1.48 3.43 1.49 Proximity to footfall 1.50 3.36 1.51 Stall quality 1.52 3.14 1.53 Standards of presentation1.54 3.00 1.55 Events / promotions 1.56 3.00 1.57 Signage / information 1.58 2.69

7 Chatsworth Road Market

7.1 Chatsworth Road had been running as a temporary market since November 2011 but the Hackney Council consulted the public to formally designate this market. The designation of Chatsworth Road is due to be endorsed by Full Council in February 2014.

7.2 Flyers have been produced to promote an initiative that offers a market stall free of charge for 4 weeks to those people claiming JSA and 1 week to those who don't. The initiative has been set out to attempt to offer local people that are struggling to find employment, the opportunity to create their own business whilst driving up the trader numbers of the market.

We are aiming to distribute the flyer by the end of November in tandem with an article that will appear in Hackney Today.

7.3 Bi-annual meetings with Chatsworth Road Market representatives have been held since February 2012.

7.4 Christmas Event road closures – LBH help both Broadway Market and Chatsworth Road Market hold special Christmas events by managing the closing or roads and suspension of parking bays on the designated event days 8 All Markets – Cost Cutting Activity

8.1 Under the London Local Authorities Act 1990, a “licence street” means a street designated under section 24 (designation of licence streets) of this Act. Within a licensed street, a licence to trade may be issued by the local authority which permits person/s to sell authorised goods or products.

8.2 The project was initiated to enable the Council to formal designate streets for permanent trading. Markets consisting of temporary traders do not need designating. Markets where permanent traders operate do. We are looking to designate all our markets to ensure any changes made to our markets are recorded and formalised as set our in the London Local Authorities Act 1990.

8.3 In February 2014 Hackney Markets were designated at Full Council

8.4 As a result of discussions with stakeholders, the Council is aiming to create a generic operational manual for all traders in the borough, with a schedule appended for market specific information. We have taken this decision to create consistency of work practises in our markets but also to reduce the risk of confusion amongst traders who may operate in more than one of our markets. This new manual will also include a section, to encompass the role of the Trader Associations in respect to market issues.

8.5 We are developing a process for the allocation of licenses with the respective associations to provide both a guideline on the criteria we require traders to meet, but also to promote transparent working. The associations cannot legally issue a license however we recognise their insight and experience has a great part to play in shaping our markets; therefore in line with the Mayor’s Priority ‘providing effective community leadership’ we are engaging the markets’ community in this process. We also recognise that each market in Hackney has its own niche and therefore the criteria will be individual for each market.

8.6 The first draft of the operation manual was completed in July 2013 and sent to the All Market Associations and Internal stakeholders for comments. 9 Future Actions 2014/15

 Implement the restructure of the Council’s Markets Team.  Implement new fees and charges.  Implement variable charging.  Development of a new market strategy, including a marketing plan.  Implementation of the Council’s generic operational manual.  Implement the new commodity mix at all Markets.  Develop an improvement plan for each market addressing any issues identified in the Retail Group Study or by traders.

10 Market Finance

Kingsland Ridley Road Broadway Hoxton St Chatsworth All markets - Waste Market - Market - Market - Road - OUTTURN Market - Forecast Forecast Forecast Forecast Forecast

EXPENDITURE STAFF TOTAL 254,324 153,375 36,122 23,591 15,600 25,637 PREMISES TOTAL 56,233 39,844 782 14,715 338 555 TRANSPORT TOTAL 7,207 4,346 1,024 669 442 727 SUPPLIES & SERVICES 11,909 7,182 1,691 1,105 730 1,200 TOTAL COMMISSIONING TOTAL 668,908 603,139 29,058 8,338 23,965 3,576 RECHARGES TOTAL 74,513 44,937 10,583 6,912 4,570 7,511 FINANCING TOTAL 3,998 3,998 0 0 0 0

GRAND EXPENDITURE 1,077,093 856,820 79,260 55,329 45,645 39,206 TOTAL

INCOME TOTAL INCOME (742,113) (522,540) (99,251) (89,415) (15,790) (15,118)

NET EXPENDITURE 334,980 334,280 (19,991) (34,086) 29,856 24,089

Savings - Stage 1 to 3 (70,432) 0 0 0 0 Tonnage Savings (20,000) 0 0 0 0 NET EXPENDITURE - 243,715 243,848 (19,991) (34,086) 29,856 24,089 AFTER SAVINGS