By Cara Waters
Traders at South Melbourne Market have accused Port Phillip Council of trying to turn the market into another Chadstone Shopping Centre by hiking fees and demanding expensive stall fitouts.
The Age has obtained an email sent to stallholders telling them they have to pay three months’ rent as a “security deposit” upon their next lease renewal.
Shoppers browse at South Melbourne Market. Credit: Penny Stephens
The traders said the spirit of the market is being destroyed by management because they cannot afford the increased security deposit and may have to leave if it is enforced.
Heather Cunsolo, mayor of Port Phillip Council, which oversees the market, said the management team took great pride in the landmark and had a “close working relationship” with traders.
“We deny any bullying accusations,” she said. “Our goal is to continuously improve and provide a sustainable market for our community.”
Traders who spoke to The Age asked to remain anonymous because they feared reprisals from market management.
“It’s really toxic,” one said. “It’s not really a friendly environment to work in.”
The trader said the increased security deposit, which was previously only the equivalent of one month’s rent, would cost traders anywhere from $5000 to $50,000 depending on their rent.
“It is a massive setback to business owners who are just slowly trying to build back their business one day at a time after the devastation of COVID and the after-effects of the pandemic,” he said.
“Frankly, this feels like a greedy cash grab extorting money from the exhausted traders still licking their wounds.”
The trader said he had been bullied by management to give sales figures, which he felt was a bid to extract more money from him.
He said it was difficult for stallholders to build businesses when they were only being offered short-term leases.
“In which mercantile system does it sound fair or even make sense to give a viable business with sizeable investments a one-year lease and have its future hanging?”
Cunsolo said one-year lease terms were mainly for new traders to allow them to test their businesses.
“There may be, on occasion, an instance when an established business is only able to be offered a licence less than three years due to extenuating and confidential reasons,” she said.
“Security deposits are a standard requirement in stall licences to reduce financial risk for ratepayers in case of outstanding debts or damage to the stall.”
A second trader said she was being pressured to invest in an expensive new fitout for her stall, which she could not afford.
“Stallholders have been being forced to shift locations, to relocate because their shop doesn’t look appealing enough,” she said. “They’re trying to turn the market into another Chadstone.”
Shoppers and workers at the market on Wednesday.Credit: Scott McNaughton
The trader said the market was unique and customers valued independent retailers.
“You have connections with small traders but they’re trying to turn this into a shopping-centre feel,” she said. “You have some shops that look a bit run down, but that is the character of the market.”
She said if stallholders were forced to undertake expensive fitouts, the price increases would have to be passed onto shoppers.
Cunsolo said stallholders with a licence of more than three years were expected to invest in their fitouts.
Inside the South Melbourne Market on Wednesday.Credit: Scott McNaughton
“South Melbourne Market is over 150 years old, and is faced with many long-term challenges including compliance with updated building regulations, accessibility and congestion,” she said.
“Traders are required to ensure their stalls are maintained at a level that enhances their products and the overall customer experience at the market.”
A third trader warned that stallholders would have to leave the market if the increased security deposits and fitout requirements were imposed.
“It’s just about money. They are greedy,” the trader said. “What’s going to happen is we’re going to lose the diversity and we’re going to lose people who are genuinely trying to bring something different to the market.”
The South Melbourne Market’s total operating expenses in 2021-22 were $7.73 million, plus an additional $1.36 million in capital project spend. Port Phillip Council contributed $1.165 million.
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