Mission for Markets. Survey Results. Chris Savage Projects Manager Colin Wolstenholme Markets Manager, Bradford Council
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1 Mission for Markets Survey Results A project run in partnership by: Chris Savage Projects Manager Colin Wolstenholme Markets Manager, Bradford Council
2 Market Operator Survey Background Undertaken annually since From 2016 a collaboration with the NMTF under Mission for Markets included survey of market traders. Aims to develop a general understanding of the markets sector and to inform decision makers. Seeks to identify performance and financial trends in retail markets. Expanded to include information on rents, licences, toll charges and management operating models
3 Market Operator Returns 235 markets in survey 82% 10% 4% 1% 1% Public Sector Private Sector Trader operated Social Enterprise Trust 1% Charity Regions Local Authority Private Trader Social operated Enterprise Trust Other Total East Midlands Yorkshire and the Humber North West South East South West East Anglia West Midlands London North East Wales Scotland Northern Ireland TOTAL
4 Market Type by Region - 88 indoor markets outdoor markets - 35 street markets - 12 outdoor covered markets Regions Indoor Outdoor Street Outdoor covered Total East Midlands Yorkshire and the Humber North West South East South West East Anglia West Midlands London North East Wales Scotland Northern Ireland
5 Type of Markets and their frequency Market Type No 1 Day a week 2 Days a week 3 days a week 4 days a week 5 days a week 6 days a week 7 days a week Once a month Twice a month Other Indoor % 2.30% 9.10% 14.80% 8.00% 56.80% 3.40% 2.30% 1.10% 0.90% Outdoor % 25.00% 19.00% 7.00% 6.00% 4.00% 3.00% 5.00% 2.00% 1.10% Street % 22.90% 5.70% 2.90% % 2.90% 11.40% % Outdoor Covered % 8.30% 8.30% 16.70% % % - -
6 Stall Occupancy National average across all markets is 77% - Indoor Markets is 83% - Outdoor Covered markets is 82% - Street Markets is 79% Market Type No of Markets No of stalls Average Occupancy Rate Indoor 88 8,683 83% Outdoor 100 6,648 70% Street 35 2,462 79% - Outdoor Markets is 70% Outdoor Covered 12 1,346 82% (Based on 19,139 stalls at 235 markets)
7 Stall Occupancy by Region National - All Markets (235) Indoor Markets (88) Outdoor Markets (100) No of markets Occupancy Rate NA 77% No of markets Occupancy Rate NA 83% No of markets Occupancy Rate NA - 70% North East 16 85% +8% 3 88% +5% 8 75% +5% Wales 10 86% +9% 8 89% +6% 2 73% +3% East Anglia 21 84% +7% 4 88% +5% 11 83% +13% London 17 82% +5% 4 93% +10% 6 74% +4% South West 21 80% +3% 10 87% +4% 6 73% +3% West Midlands North West Yorkshire and the Humber East Midlands 19 81% +4% 10 81% +2% 8 78% +8% 31 78% +1% 22 82% -1% 7 66% -4% 37 73% -4% 16 81% -2% 15 62% -8% 38 70% -7% 8 71% -12% 22 66% -4% South East 21 67% -10% 3 84% +1% 11 63% -7% Scotland Northern Ireland
8 Market Finances Income Review of Income Rents Daily/ weekly Tolls Licence Fees Result of review Rents Daily/ weekly Tolls Licence Fees Last Year 65% 74% 69% Increased 50% 41% 38% In the last 5 years 24% 17% 23% Decreased 5% 11% 6% Over 5 years 11% 9% 8% Same 45% 48% 56% Financial position of Market Surplus 46% Deficit 21% Break even 19% Don t know 14% 8
9 Market Finances VAT Market Type No of Markets Yes No Other Indoor Market by Regions Yes No Other Total Indoor Outdoor Street Outdoor Covered Indoor Markets Local Authority Trader Operated Social Enterprise No of Markets Yes No Other Private Trust Other South West London South East East Anglia West Midlands East Midlands Yorkshire and the Humber North West North East Scotland Wales Northern Ireland TOTAL
10 Market Charges - Identified at least 24 different methods for calculating rents or tolls Rate per ft 2 mtr 2 Different Summer/winter charges Depends if its stall or lock up shop Varies if paid monthly or quarterly - A typical standard single stall charges are: Fixed rents/tolls Rents can be negotiated Based on minimum size with various add ons Depends on payment method - Indoor Markets to per week Average of per week Rate per linear metre/ft Discount for additional stalls Larger pitches receive reduction Different rate for self erect stalls - Outdoor Markets to per day Average of per day - Street Markets to per day Average of per day - Outdoor Covered Markets to per day Average of per day Rate based on area plus frontage Catering v non-catering charges Some additional charges may apply Depends if casual or regular trader Tendered rents Rents charged include service charges Depends on position on the high street Depends on the retail offer Rents charged daily and may include holiday/sick absences New traders pay higher fees Depends on pitch location on the market Depends on which day of the week
11 Market Investment 92 markets invested a total of 50.3m in 2017/18 Revenue Capital Other funding sources Total 2.1m 31.5m 16.7m 50.3m 40,000,000 by Local Authorities 619,000 by Private Markets 383,000 by Trust 21,500 by Trader operated 2,000 by Social Enterprise Market Redevelopment Highlights Barnsley Market 9m Leicester Market 7m Doncaster Market 5.4m 7 markets invested a total of 37.2 million Warrington Market 4.8m Preston Market 4.3m Ashton Outdoor Market 4m Scarborough Market 2.7m 11
12 Market Footfall 25% of markets record footfall 51% of indoor markets have automatic footfall counters 93% of outdoor markets do not record footfall 59 markets record a combined total of 96½ million annual visits Recording of Markets Footfall Market Type Yes 59 markets (25%) No of Markets No 176 markets (75%) Yes No Indoor 88 51% 49% Outdoor 100 7% 93% Street 35 17% 83% Outdoor Covered 12 8% 92%
13 Management Models Operators considering a different management model Yes No Market Type Response The Most Important Reason To improve the trading performance of the market 44% 62% 52 markets (22%) 183 markets (78%) Budget Cuts 42% 6% The Market was operating at a loss 12% 8% Operators not considering a different management model Lack of staffing resources 9% 6% The Market is not considered a Council priority 6% 6% No political or management support The market is successful The operator wishes to remain in control 46% 32% 28% Other Part of the redevelopment plans Operating the Market impacting on other priorities In the process of transferring to a Town Council Council looking to take back control 10% 14%
14 Core performance measures Decreased Same Increased Footfall 41% 36% 23% Stall Income 41% 35% 24% Number of traders 40% 36% 24% The Market profit/loss 37% 42% 21% Operational/managem ent staff employed 25% 62% 13% Market Investment 17% 57% 26% Increased 20% Decreased 30% Same 50% Number of market days 7% 86% 7% National Performance
15 National Market Performance v Regional Variations Decreased Same Increased East Anglia (21) 25.2% 50.3% 24.5% Increased 20% Decreased 30% Same 50% London (16) 24.1% 53.6% 22.3% South West (21) 24.5% 46.3% 29.3% South East (20) 25.0% 56.4% 18.6% East Midlands (38) 30.1% 50.0% 19.8% North West (27) 36.5% 47.6% 15.9% Yorkshire/Humberside (37) 38.9% 43.2% 18.1% Northern Ireland (2) West Midlands (19) 30.8% 57.9% 11.3% North East (16) 24.1 % 52.7% 23.2% National Performance Scotland (2) Wales (10) 30.0% 61.4% 8.6%
16 National Market Performance v Market Type Increased 20% Decreased Same Increased Indoor (85) 31.3% 49.9% 18.8% Same 50% Outdoor (99) 31.7% 51.1% 17.2% Decreased 30% Street (33) 19% 52.8% 28.1% Outdoor Covered (12) 33.3% 44.0% 22.6% National Performance
17 Market Performance 2011 to % 50% 40% 30% 20% 10% 2011/ / / / / /18 0% Increased Same Decreased
18 The APSE/NABMA markets benchmarking journey? Performance Indicators In 2017 a benchmarking pilot with 9 local authorities. Number of workshops took place run by APSE. Pilot authorities determined the scope of the performance indicators to cover both indoor and outdoor markets. Data templates were created with data collection completed by end of August for the financial year Each market was placed in a family group of similar markets and their performance for each performance indicator recorded against the average performance in the family group. For data templates have been sent to the 17 participating local authorities out of a total of 120 local authorities involved in performance networks. Occupancy levels Void turnaround times % of businesses leaving the market Cost per m 2 cleaned Number of indoor market visits % staff absences Average age of trader % of businesses new to the market Recycling Rates Void levels FTE staff per 100o m2 of trading area % over/under financial target
19 2016/7 Performance indicators Occupancy levels (percentage of units let / units Financial performance indicators Financial performance (percentage over/under financial target) Indoor market only performance indicators Void levels (indoor) Percentage of businesses new to the market during the year Cost per square metre cleaned Void turnaround times (days) (indoor) Percentage of businesses leaving the market during the year Recycling rates Quality assurance and consultation processes Human resources and people management processes Customer satisfaction surveys undertaken Waste disposal cost as a percentage of total cost Staff costs as a percentage of total cost Staffing Performance Indicators Percentage staff absence Number of indoor market visits per operating day Number of indoor market visits per trader Number of indoor market visits per lettable unit Number of indoor market visits per let unit Number of indoor market visits per head of population
20
21 Trader Survey market traders events traders 29 street traders 792 trading locations online NMTF May to July incentive 21
22 The Traders 32k market traders 9k events traders 24k staff 300 apprentices 70% over 50 48% female 22
23 The Businesses 81% 77% not VAT registered sole traders 31% sell food local supply chain % median age of customer sell to customers aged
24 Trading Locations 52% 58% market traders take card sell online North most market traders South most events traders 55% 33% market traders stand events events traders stand markets 24
25 Turnover and Growth 3.1bn 200m collective turnover increase since % confident in longevity 52% have business plans Boom Bust hot food, cafes; healthcare, beauty electricals; books, mags, stationery 25
26 Summary of Findings Renewal Most traders are optimistic Confidence public sector investing in markets Technology more traders take card than ever Turnover predicted to gradually increase Challenge Curate occupancy levels indicate oversupply diverse offers for local communities 26
27 Chris Savage Projects Manager / chris.savage@nmtf.co.uk Colin Wolstenholme Markets Manager, Bradford Council / colin.wolstenholme@bradford.gov.uk 27
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