Ashton under Lyne Market –supporting the local economy

ROI Team

May 2015

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ASHTON UNDER LYNE MARKET

Background

As part of the current Mission for Markets initiative, ROI Team was commissioned by the National Association of British Market Authorities (Nabma) to carry out original research in 6 UK markets to investigate the economic contribution of the markets to their towns and communities. Markets are often overlooked as significant contributors to the retail economy, largely because of the lack of solid information about their performance and contribution. ROI Team carried out primary research (detailed below) during February and March 2015 at the following markets: Ashton under Lyne, Market Harborough, Poulton le Fylde, Keswick, Plymouth and Kingston Ancient Market. The six markets we worked in illustrate the huge range of market types in the UK by size, structure, and style of offer. We have designated Ashton under Lyne as an ‘Indoor general market’. A breakdown of the types of stalls can be found later in this document in figure 14.

There has been a market in Ashton under Lyne for over 700 years, during which time the market has expanded several times to serve a growing population. The town’s historic Market Square has just started its £4.5 million redevelopment, under which the ground will be transformed into a modern and vibrant area. The redevelopment will see the introduction of new stalls and kiosks, high quality landscaping and trees, a performance area, and seating areas, as well as new street furniture and lighting. Ashton under Lyne market is open 9:00 – 5:30 daily except for Sundays, with the outdoor market open every day. The market has both an indoor presence (81 indoor stalls) plus 140 stalls in the ‘outdoor market’. From our research in the market, almost half of customers do not visit any other market, demonstrating the importance and popularity of the market for the town. The only serious competitor for Ashton Market identified by customers is the famous Bury Market, also visited by 25% of Ashton customers. More than 60% of market customers plan to shop elsewhere in the town in the same day. And almost half of Ashton Market customers tell us they know somebody whose livelihood depends on the market. All of these factors emphasise the economic importance of the Market for the town of Ashton under Lyne.

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Objectives

Build understanding of the profile of market customers.

Customer shopping and spending habits for market shopping.

Understand how Traders contribute to their local economy and how they could do more.

Estimate revenue generated by Ashton Market by triangulating spend levels projected from

customer spend with aggregation of per stall turnover.

Research Approach

To produce reliable turnover projections, we undertook 4 related pieces of work.

Survey of Market customers and visitors

Classic survey of real- time customers intercepted in the market, using a pre agreed

questionnaire. In this market fieldwork took place on Tuesday 24th and Wednesday 25th

February, during market trading hours. We comfortably achieved our targets.

Depth Interviews with market traders

To derive a measure of per day turnover per stall, we conducted a programme of ‘Depth

Interviews’ with Traders, selected to represent the spectrum across the market’s offer.

Interview with market manager

We pre-arranged an interview, part questionnaire, part Depth Interview; part hard data, part

based on views and perceptions, with market manager Nicola Martin.

Footfall in the Market

To project monthly spend from our limited sample of market shoppers we needed a measure of

footfall across the market. In the case of Ashton, we were given access to their automated

footfall counting system.

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Market Catchment Area

On this map the purple dots indicate the homes of market shoppers. It can quickly be seen that as many as half of shoppers live very much locally to the market, ie within 1.5 km. Another, smaller wave of shoppers live within 3 km, with the draw strong towards the NW and NE, but weak reaching South Eastwards.

SHOPPER PROFILE

Age and gender of customers

Figure 2

Figure 3

The customer profile is overwhelmingly aged, with two thirds of shoppers entitled to draw their pension. Conversely the market is missing out on younger customers almost entirely: less than 10% of shoppers found in the market are under 45. Many markets are boosted by students who spend freely on hot food takeaway stalls – but as yet Ashton is not attracting this high-spending type. With new colleges planned for the town, the first due to open in September 2015, the market will hope to recruit new customers from this group. Our survey work was carried out over a Tuesday and Wednesday window, and so may be missing a younger customer cohort that may be coming to the market on Saturdays.

Female 61%

Male 39%

1%

3%

3%

2% 23% 68%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Ashton under Lyne

16-17 18-24 25-34 35-44 45-64 65+

Customer residence

Ashton Market Location

Figure 1

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Markets customers lifestyle profile

ACORN is a segmentation tool which categorises the UK’s population by lifestyle types based on residential postcodes. ACORN segments households and neighbourhoods into 5 Categories, 17 Groups and 59 Types. It provides detailed understanding of the consumer and lifestyle characteristics of people and places across the UK. By analysing significant social factors and population behaviour, it provides precise information and an in-depth understanding of the different types of people.

We collected a residential postcode from our survey respondents, enabling us to analyse the sample by lifestyle profile. In the table below we have compared the lifestyle profile for the Ashton catchment (the black line) against the profile of people actually shopping the market (coloured bar lines) the graphic below indicates the spectrum of lifestyle types running from left (most affluent, highest lifestyle) to right (least affluent, socially constricted).

Figure 4

Affluent Achievers Rising Prosperities Comfortable Communities

Financially Stretched Urban Adversity

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Ashton market customers Ashton Catchment

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It can be seen that the shopper profile for the Market broadly follows that of the catchment, though with one or two notable exceptions. For example the Market is massively over-recruiting the ‘Poorer Pensioners’ type, at the same time substantially under-recruiting the ‘Starting Out’ and ‘Modest Means’ types. In summary, the Market should consider strategies to recruit more younger shoppers into the market, for example by introducing stalls offering health-food and hot food take-aways.

Household composition of Ashton Market customers

Figure 5

More than 40% of shoppers found in Ashton Market live alone, and almost half are living in a couple. Single adults tend to be frequent shoppers, spending modestly on day-to-day staples.

Market customers employed status

Figure 6

Three quarters of Ashton Market shoppers are retired, more than three times the national average. Only 16% of shoppers are wage-earners, either full-time or part-time. Typically students like to frequent markets but here they constitute only 2% of the market shoppers’ profile. Students will surely become more significant with the opening of a new college opposite the market in September 2015.

42% 44% 8% 6%

0% 20% 40% 60% 80% 100%

1 2 3 4+

Retired, 76%

Not employed, 7%

Part-time employment,

7%

Student, 2% Full-time employment,

9%

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Customers’ Frequency of Visit

Figure 7

Matching the profile, this customer base is extremely loyal, with more than 6 out of 10 coming twice weekly or more often. Average per month frequency is an impressive 10.3. With only one in 10 coming monthly or less, there is little opportunity to get these shoppers to ‘upgrade’ their frequency. Growth has to come by recruiting new customers.

Stalls visited and bought from

Figure 8

The market has a wide and balanced offer. Only three stall types (plus ‘Others’) are attracting more

than 10% of shoppers. Hot food stalls already attract almost one shopper in 10, and would do even

better with an increase in younger shoppers in the market. As in most traditional markets, more

than half of the market’s offer attracts less than 5% of visitors.

28%

33%

19%

11%

4% 6%

0%

5%

10%

15%

20%

25%

30%

35%

More or less every market

day

2 or 3 times per week

Weekly Monthly Less than monthly

Only rarely

15% 13%

12% 11%

9% 8%

5% 4% 3% 3% 3% 3% 3% 3% 3%

0% 2% 4% 6% 8%

10% 12% 14% 16%

Others include: sweets,

cards, bric a brac,

antiques etc

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Customer Spend

In spite of the ageing shopper profile, average per trip spend is a very respectable £20.08 per

trip. Managers of a medium sized shopping centre in a town like Ashton would be very happy

with such a figure. Combining this with the average frequency count, we project monthly spend

of £207.43 per customer. State pensioners among the 3/4 who are retired are spending more

than a third of their income in Ashton Market.

Figure 9

The 10% spending nothing during their trip is very respectable. The challenge is that almost half

of shoppers spend less than £10 – that’s where the managers can target to boost spend.

Are market visitors shopping elsewhere in town?

Figure 10 Figure 11

Of those spending in the market, over 60% intend to spend elsewhere in the town today, and of

these almost half intend to spend more than in the market. This is a further gauge of the value of

the market to the town centre economy.

10% 46% 22% 12% 8%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Nothing £10 and under £10 - £25 £25 - £40 £40 - £60 £60 and over

Yes 61%

No 39%

More 45%

Less 40%

About the

Same 15%

Do you spend more outside the Market?

market

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Saving customers every month

Figure 12

A large proportion of customers in a buzzy market like Ashton tell us they buy in the market for

freshness and quality rather than to save money. Even so well over a quarter of shoppers

estimate they are saving more than £20 per month by shopping in the market.

Performance and Status of Ashton Market

Figure 13

Ashton under Lyne Market

Size of market /no of stalls 221

Market days per month 26

Wifi Available? Yes

Potential customers per day 5,545

Average per trip customer spend £20.08

Average per month frequency of visit

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Aggregate customer monthly spend £207.42

Aggregate per month market turnover £2.49m

Aggregate annual market turnover £29.92m

Of the 6 markets where we surveyed, Ashton comes out first or joint first against all factors and

demonstrates its economic contribution to the town. It’s a big market that opens 6 days per week, in

turn generating more than 200 full time jobs, which also generates a spend in the local economy

close to £30m per year.

A Wi-Fi service, offered free to customers and traders, might be one reason for its success that other

markets could emulate.

25% 25%

5%

Saving in the market

less than £10 £20 to £30 More than £30

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Turnover per stall

We conducted Depth Interviews with a selection of Ashton Market Traders, looking to cover the full

range of the market’s offer. We questioned Traders about the number of customers served at their

stall during a typical day, and the average transaction value. The aggregate of these responses

enables us to project typical per day spend for all stall types standing in the market. In making our

projections we excluded a small number of stalls that declared a very low turnover level and appear

not to be a commercial proposition.

Figure 14

Name of stall group Number of stalls in group

Stall Group Average

Per day revenue

Per month revenue

Arts, Crafts and Gifts 3 £201 £603 £15,075

Bags and Accessories 4 £34 £1,392 £ 34,800

Books Magazines & Stationery

5 £1,553 £7,765 £194,125

Butcher/ Wet Fish 1 £4,255 £4,255 £106,375

Cafe/ Take Away 2 £288 £576 £14,400

Childrens goods and products

7 £ 403 £2,821 £70,525

Electrical Goods 2 £138 £276 £6,900

Entertainment and Communications

15 £138 £2,070 £51,750

Fashionwear 13 £173 £2,249 £56,225

Footwear 1 £282 £282 £7,050

Fruit and Vegetables 3 £593 £1,779 £44,475

Groceries 1 £483 £483 £12,075

Household Goods & Textiles 20 £2,419 £48,380 £1,209,500

Jewellery and Watches 3 £403 £1,209 £30,225

Lingerie/Nightwear/ Hosiery 4 £281 £1,124 £28,100

Second Hand/ Bric a Brac/ Vintage

15 £525 £7,875 £196,875

Speciality 4 £403 £1,612 £ 40,300

TOTAL 103 £823 £84,751 £2,118,775

Figure 14 above indicates that in a thriving market like this one, most stall types are able to make a

viable business, with turnover levels that independent shopkeepers would envy. Here market

perennials such as Fresh Meat and Fish and Household Goods are thriving; but a number of types are

struggling to meet their costs of operation. Perhaps council and market management should be

helping these struggling types to improve their offer or to find lines not available elsewhere.

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Traders Contributing to the Local Economy

In the course of our Depth Interviews programme, we asked Ashton Market Traders about how

they believe they contribute to the local economy, and how they could contribute more fully,

given the chance. We asked about their role in supporting training, entrepreneurship,

apprenticeship schemes, local supply contracts, input into the local business supply chains and

much more.

In some markets it appeared that Traders were more engaged with local economic enhancement

than market management realised.

Jobs and Employment The Local Authority said they will give training when the new market opens, this was supposed to be in January but has been delayed due to the road works to the market

Mobile phone accessories, Male, 50’s

We contribute economically locally, by employing13 local full time members of staff. In the past we

have gone to colleges and done workshops on how to cook meat properly

Butchers, Male, 50’s

Our sweets and packaging are delivered here by a local driver - creating employment locally

Sweets, Female, 50’s

We have commercial arrangements as we deliver locally, supporting a local driver and local

businesses. The value of this is £80 a month delivering to local businesses and £150 a month to

other towns. I also support 2 of my employees as they are currently completing a diploma in retail,

a tutor comes in once a month to help to assess them

Newsagent, Male, 50’s

Community Engagement I would love to teach and run a class to show people how to cook well but need finances. I have

done a few talks on food and will be doing one at Tameside Library.

Hot food take away, Male, 50’s

We support local charities including Football and Cricket season by sponsoring the local kit

Newsagent, Male, 50’s

Contribution to the local economy Customers save money as they can exchange their books and get a percentage of the money

back. This saves customers a lot of money

Books, Male, Late 40’s

We are just about surviving ourselves and cannot really think about how we can contribute to the

local economy

Florist, Male, 50’s

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MARKET CONTRIBUTING TO THE LOCAL ECONOMY

We conducted an extended interview with Market Manager, Nicola Martin. She is rightly proud about the economic success of one of her Traders, Williams’ Deli Counter. From a standing start in Ashton Market, they now supply sandwich meals every week to an international airline, namely Singapore Airlines and also have a catering contract with Chester Zoo.

Ashton’s historic Market Square has just started its £4.5 million redevelopment where the ground will be transformed into a modern and vibrant area, with the introduction of new stalls and kiosks, landscaping and trees, a performance area, and seating areas as well as new street furniture and lighting.

The project will not only provide a brand new modern market for traders and customers but will also complement the ambitious multi-million pound ‘Vision Tameside’ master plan, which will see a major influx of students and teaching staff to the town centre at the end of 2015.

This dramatic change to the number of people working and studying in the heart of the town will provide a major boost to the market, local shops and retailers, and will help to attract new investment and businesses to Ashton and the wider Tameside area.

Despite the fact that Ashton has one of the busiest town centres in Greater Manchester, it is important that the Market Square, now looking tired and dated, is developed and modernised to reflect these changes and ensure it meets everybody’s needs. We are investing now to ensure we continue to compete with our neighbouring towns, which are upping their game, securing our position as one of the busiest and most popular markets in the North West.

A number of our traders also trade into the wider local economy. Williams’ Deli Counter, who has traded at the Market for 60 years, supply sandwiches to Singapore Airlines and also have a contract to supply sandwiches to Chester Zoo.

I am aware one of our newer tenants, Nat Mistry, who sells homemade Indian food, has started outside catering and a takeaway element which is growing strongly. Our butchers and fishmonger supply various pubs and restaurants and offer a delivery service, and our Newsagent has a number of commercial contracts and delivers locally.

In addition to the small businesses on site, the Market also provides direct and indirect employment to many people. We recently ran an apprentice initiative in partnership with Age Concern and we now have a number of tenants who have taken on apprentices.

Let’s not forget that this market is profitable, and the profit we generate for the Council is valuable in a difficult financial environment

Historically supporting Traders skills hasn’t been something we have been good at. Through the consultation period we have realised that we need to encourage traders to look at their current offer, and we plan work to tackle this over the next 18 months. The Council plans to hold business training, mystery shopping and, following on from this, customer care training for our traders and tenants.

The recent introduction of the metro link to Ashton has made the town more accessible, and further work around the bus and train station taking place over the next three years will ensure that the town benefits from its improved links and redesigned transport hub.

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Ashton Market and the local economy

In Figure 15 we gather economic performance figures calculated from ROI Team’s work and provided from file by Market Manager and Council officers.

Figure 15

Ashton Market

Number of stalls 221

Traders per week 238

Full rental potential for the market

£1,732,562

Current rental take £1,242,983

Difference -28%

Market generated jobs 14

Trader generated jobs 150

Market generation of local commerce

No

% contribution to local business chain

10%

Market turnover per year £29.92m

Investment for maintenance and improvements

£0.55m

Owners of other retail locations, such as shopping centres or retail parks, would see a very ordered relationship between turnover (i.e. customer spend), rental payable by tenants, and re-investment into the centre. In markets these relationships are much less dependable. Of the 6 markets under the scope of this study, Ashton Market looks most like the classic retail picture. Including seasonal lettings and also outdoor stalls, the market realises 72% of its rental potential. Rental income represents just over 4% of total turnover, and annual investment (for maintenance, repair, and upkeep) represents just under half of rental take. These last two figures are low by typical retail standards – but at least there is meaningful investment by Tameside Council for both maintenance and capital improvement.

Rent and

Vacancy Levels

Market Turnover/Actual

rental/Investment

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Acknowledgements

ROI Team wishes to thank many people and organisations that have supported this project. The

work was commissioned by Nabma with initial funding provided by the DCLG. We also thank

managers and councils responsible for the six participating markets who agreed to host our

fieldwork in their markets and also provided funding which was matched from the DCLG

allocation. As work and analysis has progressed we have valued advice and support from

Nabma, the NMTF, and the DCLG Research Sub Group.

We very much appreciate the input of these organisations and additionally many markets

professionals who have willingly provided information and reaction.

Andrew McCall

ROI Team

May 2015

www.roiteam.co.uk