John
Turnbull may not be your typical market executive. For starters he was a Traders
Advocate before he became a Management Executive. The transition from the
trader side to the management side is unusual, although equally, Pike Place
Market may not be a typical market.
Mr. Turnbull
made a presentation to traders during the CEO’s monthly briefing at the
Engagement Hub on Tuesday and he said a few things that caught the attention of
traders. Pike Place Market is in Seattle, Washington and one of America’s
oldest public farmers markets. It conducts a variety of activities and has
shops, restaurants, day stalls for produce and craft goods, and supports nearly
500 residents in mostly low-cost accommodation. Pike Place has an interesting
history and an online wiki gives plenty of detail.
The market recently
went through a major renewal which gave rise to a public plaza with views to
the adjoining waterfront so there are particular points of relevance for QVM’s
upcoming renewal.
Some of the
points he raised were –
1. During their construction phases,
traders were given the option of closing down if directly affected. From
2008-2012 85 businesses closed down for 6-8 months and 45 moved location.
Business actually improved during that period.
2. During construction they promoted the
fact that navigation through the market was going to be difficult and that
seemed to attract visitation.
3. In some cases rents are based on sales and there
are a variety of lease options. Most new traders come in a 1-2 year lease with
a 3 year option. Others have 5-8 year leases.
4. 40% of their rental income is related to fresh food,
40% to hospitality (restaurants etc.) and around 20% to general merchandise
although that category is losing ground to Ebay, Etsy, Pinterest, and Amazon.
5. Pike Place is a major Seattle tourist
attraction although tourists are viewed as a nuisance.
6. Competition from online and supermarkets
is a reality at Pike Place. Fishmongers do millions of dollars of business
online.
7. Relocation assistance for traders involves
lots of different strategies.
8. Continuity of tenancy is very
important to the market. Even poorer traders are allowed to continue trading as
long as they pay rent and tick most boxes for customer relevance.
9. Trader positions are determined in
part by their profitability and capacity to pay rent.
9. The market changed the content of its management back in the 70's and replaced outside professionals (architects and property developers) with managers experienced in business and markets.
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