Sandwell Council to charge food vendors at new West Bromwich indoor market 20 per cent of weekly earnings

The new indoor market in West Bromwich High Street is set to finally open to the public in August.

Sandwell Council said it planned to extend the opening hours of the new multi-million-pound venue, which has moved from the Kings Square Shopping Centre, with new food and drink stalls in a bid to boost the town’s night-time economy.

But the council agreed this week to scrap a flat rental fee for food and drink stalls at the new market’s food court in favour of a 20 per cent weekly charge on earnings.

The council said each stallholder would be bound to an electronic till system that allowed the authority to monitor sales and issue rental charges based on weekly takings.

The market, which is being built in the town centre’s former Argos store, was originally due to open at the end of 2023.

Sandwell Council said work to fill the stalls was “progressing well” and it expected the list to be finalised by the end of the month.

It said it had taken the advice of consultancy firm Market Curators which it said specialises in “developing new indoor markets and stimulating urban regeneration initiatives”.

The firm told Sandwell Council it should include food and drink stalls at the market with extended evening opening hours.

The council has also used Market Curators' recommendation to adopt the 20 per cent weekly charge – a move it said would generate more money for the authority.

Sandwell Council outlined: “That is, total sales are monitored for these stalls, and they are then invoiced on a weekly basis at a rate of 20 per cent of their gross sales or turnover.

“Market Curators state this is likely to result in greater annual income for the council than comparative fixed stall fees and benefits the stallholder as it smooths cash-flow fluctuations and helps them manage their finances more effectively on a week-by-week basis.

“It will also support these new businesses while they build their customer bases after their initial fit-out investment.”

The council said each stallholder would have to agree to using an electronic till to “accurately monitor sales”, which allowed the market’s manager to check sales in real time.

Stallholders would also be subject to random, unannounced inspections and CCTV monitoring to check for ‘secret’ card machines being used to avoid the system.

“As the turnover rent protocol will be monitored on a weekly basis, any significant deviation from expected income projections will be similarly monitored and will facilitate periodic reviews to ensure that the council is receiving best value,” the council’s decision read.

“In the unlikely event that turnover stall rents prove to be less effective than fixed fee stall rents, the six-monthly break-clause that will be incorporated into all stallholder leases would enable the council to renegotiate the stall rent arrangements with individual tenants.”