A Report of the Economy & Culture Scrutiny Committee Cardiff Central Market and Historic Arcades October 2014 The City of Cardiff Council 1 CONTENTS CONTENTS .......................................................................................... 2 CHAIR’S FOREWORD ......................................................................... 3 INQUIRY TERMS OF REFERENCE ..................................................... 5 KEY FINDINGS .................................................................................... 6 RECOMMENDATIONS ........................................................................14 EVIDENCE ..........................................................................................17 Background.....….…………………..………….……….....18 Historic Arcades..…………………………….…………....18 Cardiff Central Market.…………………….…..................37 Local Currency……..…………………….…………..........54 Good Practice and previous Committee Work……….....55 City Centre Parking…………………………..………….....60 Business Improvement District...………….….................61 INQUIRY METHODOLOGY .................................................................61 BIBLIOGRAPHY ..................................................................................62 LEGAL IMPLICATIONS .......................................................................63 FINANCIAL IMPLICATIONS ................................................................63 COMMITTEE TERMS OF REFERENCE .............................................64 ECONOMY & CULTURE SCRUTINY COMMITTEE MEMBERSHIP… 65 2 CHAIR’S FOREWORD In recognition of the importance the Economy and Culture Scrutiny Committee places on small businesses in Cardiff, the Committee has recently undertaken three in depth pieces of work focused on this area of the economy. This report, which gives attention specifically to Cardiff Central Market and the historic arcades in the city centre, builds upon the findings of the ‘Small Business’ Inquiry published in January 2014 and the ‘Higher Education Innovation in Cardiff’ short scrutiny published in November 2013. The Economy and Culture Scrutiny Committee recognises the important ‘offer’ that the independent retailers and small businesses found within the Historic Arcades and Central Market bring to the city centre shopping experience, and hope that this report will support the growth of this sector. Cardiff Central Market and the historic arcades have been frequented by shoppers and visitors to the city for well over 100 years and they are a unique selling point of the city centre, showcasing Cardiff’s Victorian and Edwardian heritage. As modern developments and arcades have been built in the city centre, with nationwide chains and established brands populating their stores, the historic arcades have become the home for many of the independent traders and specialist stores in Cardiff. Through this Inquiry, the Committee aimed to explore the role of Cardiff Council in running Central Market and supporting the historic arcades. The future of both the market and arcades are considered to be very important for the city, and as such Members wished to review future improvements the Council could make and explore initiatives undertaken by other local authorities across the United Kingdom in order to secure a successful environment for businesses within the arcades and market to thrive for years to come. The Inquiry received evidence from a range of sources, including representatives of Cardiff Metropolitan University, Cardiff Central Market Traders Association, Ashdown Phillips, Curzon Real Estate, Cardiff Council, Rules of Play, the National Association of British Market Authorities and Wrexham Council. I wish to express my thanks to all those who contributed to this scrutiny exercise, either in person or in writing, who 3 willingly gave their time to assist us and without whom this Inquiry could not of taken place. Councillor Craig Williams Chairperson, Economy & Culture Scrutiny Committee 4 INQUIRY TERMS OF REFERENCE As part of their 2013/14 Work Programme, Members of the Cardiff Council Economy and Culture Scrutiny Committee established a task and finish Inquiry into Cardiff Central Market and Historic Arcades. This inquiry sought to: • Understand the Council’s role in running and supporting Cardiff Central Market and the city’s historic Arcades • Understand the importance of Cardiff Central Market and the Arcades to the local economy • Explore options for the future of Cardiff Central Market and the Arcades • Review good practice from other local authorities in their support and promotion of Markets and Arcades • Review public opinion and awareness of Cardiff Central Market and Arcades • Understand the views of market stall holders and arcade store owners • Understand the implications of a potential Business Improvement District proposed for Cardiff Council, and the impact this will have for Central Market and the Arcades. The evidence collected would be used to make informed recommendations to the Cabinet and other relevant stakeholders. Members of the Economy & Culture Scrutiny Committee volunteering to participate in this Inquiry were Councillors Craig Williams (Chair), Chris Weaver, Darren Williams, Gareth Holden and Georgina Phillips. Subsequent to the Inquiry being initiated, Councillors Holden and Phillips resigned from Committee membership. We are grateful to former and existing Members for the time and commitment invested in the Inquiry. 5 KEY FINDINGS Having received evidence from nine witnesses over four meetings, commissioning four pieces of research and considering a number of written reports, the Members identified the following key findings for the Inquiry: Cardiff Historic Arcades KF1. Cardiff is often referred to as the ‘City of Arcades’, given that it has the highest concentration of Victorian, Edwardian and contemporary indoor shopping arcades of any British city. The historic arcades in Cardiff are considered to be one of the City’s unique selling points and showcase Cardiff’s Victorian and Edwardian heritage. They are home to many independent traders and specialist stores, and retain many of their original features, providing an intimate environment for shoppers away from the bustle of the high street and modern arcade developments. KF2. Cardiff city centre has changed significantly in recent years, with the expansion of St David’s Arcade alongside the opening of John Lewis in 2009, and the pedestrianisation of St Mary Street in 2010. These developments have undoubtedly increased the number of shoppers in the city centre; however the benefits to this have not been seen by all the historic arcades. Those located in the Castle Quarter have reported decreased footfall, while the arcades that link through to the Hayes have reported increases. KF3. The historic arcades (and therefore the stores within them) have not responded to the extended shopping hours offered by stores within the St David’s 2 Arcade, where shops are now trading until 8pm. Typically stores within the Arcades close at 5.30 pm. Evidence suggests that while some stores consider it a natural progression to keep the arcades open later, others would be reluctant as their resources are already stretched to the limit and could not open the store for longer hours. 6 Cardiff Central Market KF4. Despite significant change in the city centre, Cardiff Central Market provides a link back to the history of Cardiff, having opened in its current location in 1891. The history of the Market dates back to the early eighteenth century, and it occupied a number of sites across the city centre before settling in the former site of Cardiff gaol. This landmark is unique to Cardiff, with many of its original Victorian features remaining to this day, and is an essential part of Cardiff’s tourist offer. KF5. Cardiff Central Market is currently operating with near full occupancy, combining traditional staple stalls, such as butchers, greengrocers and fishmongers, with a number of cafes and delis, and more specialist stalls. External national organisations describe the Market as “an architectural gem for the City of Cardiff”1 and a “really impressive market hall”2. However it must be noted that these organisations also identified opportunities for improvement in the Market’s operations. KF6. Byelaws made in 1988 provide a framework for the operation of Cardiff Central Market. Most of these byelaws are required to set out rules for operating a stall in the Market, but some may be restricting changes or improvements taking place. For example, the days and hours of Market operation are limited to Monday to Saturday, 8 am – 6 pm, and the level of fine that can be imposed on traders who break the operating rules is limited to twenty five pounds. Impact of City Centre Developments KF7. Traders in Cardiff Central Market and from across the Historic Arcades indicated that they have seen decreased levels of trade over the last two to three years, with the pedestrianisation of St Mary Street, the new St David’s development and the cost of city centre parking being highlighted as some of 1 NABMA – Cardiff Market Health Check: Visit Wednesday 14th May 2014 2 NMTF – Cardiff Market Visit, Thursday 6th February 2014 7 the reasons why this is felt to have occurred. This is not a problem unique to Cardiff; evidence across the UK suggests that the plight of small and independent retailers is a big area of concern for many British cities. KF8. Traders and landlords feel that footfall in the city centre has shifted following recent developments. The arcades in the Morgan Quarter have experienced increased footfall as shoppers travel from the transport hubs at Central Square to St David’s Arcade and John Lewis, while arcades at the Castle end of the city centre have reported a decline in pedestrian flow. Estimates suggest that there are around 100,000 people walking through the Morgan Quarter arcades per week, while only a fraction of this travel through the Castle Quarter arcades. That said, it is important to note that footfall does not necessarily mean increased sales, with stores responsible for turning this passing footfall into sales. KF9. There is a perception that the Council should be helping to address this problem of decreased footfall through the Castle Quarter arcades, with some traders commenting that if the area degenerates further they will have no option but to leave the Arcade. Individuals who originally supported the pedestrianisation of St Mary Street now feel it is having a negative impact on businesses in the Castle end of the city centre. Suggestions for improvement to footfall include; re-introducing limited numbers of buses or taxis along St Mary Street; reviewing which buses stop outside the Castle; reviewing the placement of pedestrian crossings outside the Castle; and improving promotion of the Castle Quarter. Market Issues – Maintenance/Investment KF10. Research suggests that the performance of local authorities has a strong influence on in levels of disinvestment in markets across the United Kingdom. Local authorities often vest responsibility for market operation with departments not optimally suited to the task. This is a criticism that has been made of Cardiff Council, where the Market has traditionally sat under an asset management team, rather than under officers with retail and marketing experience, who could benefit and anticipate the Market’s needs. 8 KF11. A major concern for traders and customers alike is the maintenance and upkeep of Cardiff Central Market. A building that has great historical significance, and is referred to as an “architectural gem” has been allowed to deteriorate through under investment from the Council. In various surveys the Market was described as ‘dirty’ and ‘grubby’, and it was highlighted to Members that the roof leaks in numerous places. A number of stakeholders commented that the Market needs to be thoroughly cleaned and given a fresh coat of paint – quick wins that could make it seem a far more attractive visitor and shopping destination. KF12. The Council recognises its need to realise the potential of the great asset it owns, and as such City Centre Management has examined how the Market can become a destination of choice and attract a more diverse customer profile. Plans have been developed for a rebranding of the Market that give recognition to its history and heritage and propose promotion of the Market along St Mary Street and the surrounding area. It is important that internal appearance, retail operation and the vision for the Market are addressed before this promotion can be undertaken, as otherwise its success will be limited. Market Issues – Tenant Relations KF13. Relations between the Council and some traders within Cardiff Central Market have fluctuated for a number of years, with a series of ongoing disputes, mainly surrounding the introduction of tenancy agreements and rent reviews. In recent years, and particularly since the current Director of Economic Development came into post, significant effort has been made to resolve these issues. While improvements have been made it is clear that a number of issues remain, and that while these issues are outstanding limited progress can be made to move the Market and plans for its improvement forwards. KF14. Within Cardiff Central Market, the space allocated to each tenant or stall is demarcated by a ‘blue line’ painted on the market floor. These blue lines 9 define the outermost space that stallholders can utilise for trading, and ensure that sufficient space is available between stalls for compliance with health and safety regulations and disabled access. The enforcement of this ‘blue line’ demarcation was highlighted by a number of sources as something that is not taking place, and throughout the market many stalls can be seen to set up and display their goods outside their individual permitted boundary. Market Issues – Potential Improvements KF15. A number of ideas have been put forward as improvement proposals for Cardiff Central Market. These include reviewing the hours and days the Market is open for trade; developing a business improvement plan and long term strategy for the Market; agreeing shared objectives with traders; exploring funding opportunities such as the Heritage Lottery Fund; participating in the Love Your Local Market 2015 campaign; exploring social media opportunities; providing free wireless internet access; and exploring opportunities work experience placements or job seeker training. Promotion and Signage KF16. Witnesses commented that the Council is not doing enough to promote Cardiff Central Market and the Historic Arcades, and as such is missing an opportunity to exploit the unique identity that they create for the City. These links back to the Victorian era provide a balance to new modern developments – they are a unique selling point of Cardiff, and should be promoted accordingly. The Council has invested in ‘way finders’ in the city centre, but a perception exists amongst independent traders that these focus on directing people to the large modern developments and aren’t suitably aimed at the historic areas. It is also felt that city centre ‘way finders’ miss an opportunity to provide an insight into the history of the arcades and the City as a whole. KF17. Research findings suggest that traders within Cardiff Central Market and to a smaller extent the historic arcades have been slow to embrace e-commerce 10