Market set to lose £200,000
BRIDGEND Indoor Market is expected to make a loss of nearly £200,000 this year as growing numbers of traders leave over high rents.
BRIDGEND Indoor Market is expected to make a loss of nearly £200,000 this year as growing numbers of traders leave over high rents.
The market, run by Bridgend County Borough Council, is half empty with four traders having left since March and no new ones signing up.
A report going before cabinet members on Tuesday, June 19, urges “radical and prompt” action.
Officers are recommending a permanent 25 per cent reduction in rent for current traders from July to try and prevent any more traders leaving, with rents to be frozen until April 2020.
Other proposals involve almost halving the current asking rents for new traders, installing new signs and displays, and creating an open “central market square” with a play area, children’s rides, seating, temporary pop-up stalls, cultural events and ad hoc events such as running trade and craft fairs.
The council has a 99year leasehold interest in the market, part of the Rhiw Shopping Centre, which started on June 19, 1972.
The lease is reviewed every 14 years but was last reviewed in 2007 – just before the financial crisis.
Many traders cite the rents being too high, compared to other retail units in Bridgend and similar markets in Wales, as their main reason for leaving as well as the high vacancy rate.
The council is losing more and more money as a result with officers saying it is no longer sustainable.
The full running costs for the market are currently estimated to be around £360,000 a year.
With current traders paying a total of £174,331 in rent it leaves the council with a loss of £193,510 for 2018-19.
The officer’s report notes: “While over the years the council has made significant investment in the market, including £600,000 on a new market roof, budget constraints have largely limited investment in more recent years to essential maintenance.
“Therefore, much of the external signage, displays and public areas do not present an attractive shopping environment, which is exacerbated by vacant stalls.”
Officers say the 52 per cent drop in current rates for new traders would recognise that existing traders “in the main” occupy the prime positions in the market space.
Agents appointed to market the pitches say rents need to be just over 50 per cent of current levels to compare favourably with town centre retail unit rents.
They have had no firm offers since January despite asking rates being set at just over 70 per cent of the level paid by existing stall-holders.
Measures to help revive the market have already involved granting rent rebates to existing traders from December 2017 to March 2018 but rents are now back to what they were.
Proposals also involve lifting restrictions on what traders can sell so new traders can be accepted even if they sell goods already similar to those already available in the market.
The council is aiming to achieve an average 85 per cent occupancy.
Officers say the proposed changes will result in a budget shortfall that will be addressed through earmarked reserves in 2018-19 but point out a longer-term solution will need to be developed.
Potential investment for some of the improvements would be funded by the council and the Rhiw Shopping Centre owners who have provisionally agreed £5,000.