13 Jul 2024
Council bosses are ploughing ahead with their plans for a seven-day markets operation in St Albans city centre, despite strong opposition from local businesses.
The council wants to provide pitches for at least 10 stalls every day throughout the week, operating as additional markets instead of stand-alone street traders.
But questions have been asked over whether SADC’s role is merely to regulate and licence markets, not run them, as per the guidelines of the Competition and Markets Authority.
These state that councils interact with markets in four ways: as a buyer of goods and services, as a shaper of markets, as a supplier or goods and services, and as a regulator of markets.
Should the current proposals therefore be seen as anti-competitive behaviour, as SADC is using its competitive advantage as a market regulator to licence itself to hold extra markets, thereby generating income on public highway it pays no rent on?
Fresh correspondence from St Albans City Independent Retail Association, which represents more than 100 retailers and hospitality businesses, has reiterated their own fears over the proposals.
They claim most retailers did not receive letters from the markets team on the changes, and those that did only had a three week window in which to provide feedback.
“We agree markets evolve and the proposal is an experimental pilot ahead of a final decision in February 2025. However, the proposed changes have unintended consequences for the independent retail businesses in this area.”
Their specific concerns are as follows:
* Increased days with fast-food stalls creates inappropriate odours for retailers in the immediate vicinity and significantly negatively impact the appearance of the city centre with historic buildings hidden from view.
* Market Place retailers pay premium rental for their position and visibility of their window displays. Many food ‘stalls’ are large vehicles that completely cover shop fronts and windows de-valuing them as retail premises – potential clients cannot see the offer inside.
* The pitch fees should be commensurate with the costs to trade on the high street. That is unfortunately not the case. For example, a clothes shop might be paying in excess of £100,000 a year versus a licence holder paying £5,000 a year and blocking their window.
* Some retailers have empirical data, in excess of 20 years trading, showing the existing Wednesday market negatively impacts their footfall, particularly the premium/luxury businesses, but they accept that and plan around this accordingly, (for example, some retail and hospitality businesses reduce staff or shut their shop on a Wednesday). Additional markets will be detrimental to their businesses, particularly at key trading times such as Christmas unless the markets team make sure there is a complementary offering/mix and considered positioning of stalls. This may not be a problem if permanently limited to 10 and if placement takes into consideration our needs.
* Rubbish management is currently inadequate. Food traders regularly tip greasy waste down an already struggling drainage system leading to greasy roads, slip hazards, clogged aging drainage systems and an overall messy appearance particularly on Market Place.
The Association says it has a body of evidence demonstrating that some traders do not take their rubbish with them or deal with it in a responsible way throughoout the day or at the end of the day. The rubbish left at the end of the day is not removed until well after the market is closed, detracting from the nighttime economy experience.
* Some retailers need access for large deliveries – the position of the stalls may affect this.
The Association called for assurances from SADC that these issues would be addressed during the pilot scheme, and asked how the council would measure the additional economic activity to judge its success.
The letter added: “It is important to strike a balance that respects the needs of both the historic heritage of our beautiful city, market traders and the established businesses.”
But SADC’s strategic director for community and place delivery, Chris Traill, has dismissed any concerns: “The Charter Market is, of course, run on a sound legal basis. The council was made the markets authority by the letters patent which formed the Charter Market. This has invested in us the responsibility to regulate, license and operate markets.
“Markets have been held in the city centre since the 9th century and are run along similar lines to other historic street markets across the country. Hertfordshire County Council are aware of all our operations.
“Far from somehow being anti-competitive, extra trading will enhance competition as it will provide more opportunities for entrepreneurial sellers and more choice for shoppers.
“The needs of shops, pubs, restaurants and other bricks-and-mortar businesses were given great consideration before the recent decisions on extra trading were made. We listened to their concerns and responded with appropriate action, including limiting the number of hot food sellers. This is a pilot scheme and we will continue to engage with these businesses and take on board their feedback before deciding on any permanent changes.”
