The city of Liverpool received news in June that it hopes will boost its tourism, increase investment and create jobs for the future with the announcement that it is to be the European Capital of Culture 2008. But, two months prior to that, a new alliance was formed. It did not receive nation-wide fanfares but could prove to be equally important, if not more so with regards to the future of Liverpool wholesale market.
On April 7 2003 an agreement was signed between Geraud Markets and Liverpool City Council (LCC) to form Geraud Markets Liverpool Limited (GMLL). On the Journal's last visit to the market in 2001 the council was in the process of trying to find a suitable private partner and Geraud ran out eventual winner with its bid.
Francis Caley, market manager for GMLL, is determined to see the market revamped with continued close work with the market tenants' association. He says: “The group is now committed to refurbishing Liverpool wholesale market. The site requires extensive work and we are moving forward with our plans.”
Geoff Wells, president of the market tenants association is realistic with the work that needs to be done on site. “Improvements cannot be expected overnight as the site has been neglected for far too long. We're not displeased with the deal Geraud has signed with LCC. I believe we are now moving in the right direction and it will not be too long before our members see changes,” he says.
On arrival at the 20-acre site, it does seem in urgent need of tender loving care and attention. GMLL's chief executive Andrew Burnett recognises the importance of this. He says: “The site has been clearly neglected. First impressions count and we are looking at ways to meet the requirements and needs of the market.”
On a tour of the site Caley is keen to discuss key areas of the market and explains GMLL's vision. He says: “The market is split into four blocks ñ A, B, C and D. Initially the idea was to re-locate all traders to blocks A and B, which would have been funded through a rent-free period but this proved too expensive. Two traders have seized the opportunity and have decided to continue with re-locating at their own expense. D E Griffiths re-located into A block in June this year and Hurst Brothers is due to move into A block some time in late August/early September.”
Margaret Huxley, director of D E Griffiths, is delighted with her new surroundings. She says: “Moving from D to A block is the best decision I've ever made. Having a packed A and B block can only be good for the market. So far I've found Geraud a very approachable organisation who were co-operative in my move and I am positive for the future.”
Caley who has been on the site for six years believes that the work required out should meet the market's demands, which have changed. “The way in which business is conducted has changed dramatically over the years. The once busy buyer's walks have now given way to phone, fax and direct delivery,” he says.
Wells would also like be keen to see the remaining tenants left in block D moving into block A. He explains: “If block D was empty the renting cost of the building would drop by 50 per cent due to non-occupancy. This would reduce the service charge for the tenants, which would obviously be good news. Also, I think it would be better for the market to be concentrated in blocks A and B.”
The sinking fund, which the traders contribute to, will finance the work on block A and B. No money can be spent without authorisation from the association. Geraud has marked out key areas of what needs to be done following work with the association and Wells does a great deal of work behind the scenes.
Caley explains: “Following consultation with the tenants' association a substantial amount of the sinking fund is to be invested in the site. The plan for the site includes replacement shutter doors, re-painting all common areas within A and B blocks and urgent improvements to road signage and road surfacing.”
Burnett points out that in agreement with the association not all of the sinking fund would be spent. “We are agreed that some money will be held to form a contingency fund. The painting and roller shutter doors are vital to improve the aesthetics of the market, but the work will take time as it needs to be carried out outside the market's operating hours,” he said.
Burnett believes that the close relationship with Wells is vital to continued success. He says: “It is our intention to have all works within A and B blocks completed within 12 months.”
Besides work on the blocks Geraud is also looking at ways to improve the market to improve the situation for tenants. Burnett explains: “With regards to the refuse collection GMLL has appointed a new contract due to commence in the near future which will enable a more pro-active and hopefully efficient service. The contract will include an element of recycling.”
Wells agrees that recycling is an important step to take which can bring in much needed additional revenue, he also sees composting as an important step. He says: “Manchester market has a compost unit and supplies the council's parks and gardens and we want to move in a similar direction. Also with the announcement that compost landfill sites will not be permitted after 2006, we can look to make more money from the market by selling compost throughout the region.”
One area of the market that has angered the association is the rising cleaning costs. All cleaning is carried out by Onyx, which has a seven-year contract with the council. Wells explains: “In the period 1998-99 cleaning costs were £204,000. By the year ending 2000-01 the waste bill had risen to £388,000. The figure is a ridiculous sum and completely out of proportion. There is no logical explanation. We have half the amount of tenants, half the amount of rubbish but the costs are getting higher every year. The problem with the council is that it is a good landlord but bad managers.”
Following a decrease in the number of traders consideration is being given to find alternative uses for the site. Caley says: “When I began at the market there were 45 traders this has fallen to around 32. We would like the opportunity to run a composite market along the lines of other wholesale markets throughout the country. It is the intention of Geraud Markets to embark on a feasibility scheme at the site within the near future.”
Wells believes that these ideas are good for bringing in more money but would like to see some benefit to the association. He says: “I think it would be appropriate if Geraud made a donation to the sinking fund.”
However, not all the traders can see the light at the end of the tunnel. Gerard Routledge, sales manager for Delta Fruits, is not happy with the market as it is and fails to see how it can be improved. “LCC have allowed this place to fall to bits. We'll have to see what the new landlords do, but I'm not sure they realise how much they have taken on. In my opinion re-developing the site is a waste of time. We would be better placed to move to a new site and start again. The council has lost touch with the market and conditions are getting harder for us. The supermarkets have put the squeeze on the wholesale market,” he says.
Neil Gordon has been on the market for six years and admits it's tough at the moment. Gordon says: “A new investor is good for the market, the problem is there is no new blood in the trade. We want to make our business a one-stop shop for our customers.”
Martin Halliwell, managing director of JV White Northern Ltd, is staying positive. “I'm confident that things are moving in the right direction. I get up every day at 1.30am ñ so I wouldn't be here if I didn't believe there was a future in the market. We've had a busy time this year particularly with strawberries and tomatoes. We're a forward thinking company and we believe we have a very bright future,” he says.
Gary Almond, the gregarious character behind Gary Almond Produce, believes that the location is crucial to the market and would not be keen to move. He says: “Our location is important ñ we have a good central position in the city. With Geraud coming on board we will now have to wait and see what they do.”
Some of the market's bigger players are also being cautious about the future. Peter Moss, branch manager of Redbridge AFI, says: “Nothing's changed yet but let's give Geraud a chance. Plenty needs doing at the site but I'm not going to start banging the drums. I'm looking forward to hearing their ideas. Improving the market would give a better chance to improving the business.”
Steve Webster the general manager for Fyffes Wholesale England is also prepared to wait and see what develops. He says: “The site is a heap, but I feel with the change in management of the market the benefit is to come. I've heard some good ideas.”
Hopefully the next time the Journal visits Liverpool market, some of these ideas will have been implemented and traders will be reaping the benefit. The association has a positive outlook on what the future will bring. Wells says: “The market will stay on the site, and Liverpool City Council sees it as an important part of the city. My advice is watch this space.”
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