Markets

South Melbourne Market

For fresh produce, great prices and a small carbon footprint, the Market is the only place to shop. We're proud of our reputation as the original fresh food market and we value the relationship we have with local producers and the community.

Location and Opening Times

South Melbourne Market frequently asked questions

What is going on at the Market?

There has been a lot of talk lately around the future of the South Melbourne Market. Please let us assure you, Council is absolutely committed to maintaining it as Melbourne’s premier community market.

A new roof for the South Melbourne Market

Council is building a new roof that will cover the existing rooftop carpark and will help to water proof the building. The current roof has been leaking and causing flooding and is in desperate need of repair. Click here for more information about the environmental benefits, design and construction.

Stallholder licence negotiations

Council has responded to community concerns around stallholder licence negotiations. The South Melbourne Market Committee has reviewed our licence negotiation processes and has decided to remove the ’28 day notice of termination without default clause’ from our licence agreements. We are changing it to ‘notice six months prior to the end of licence agreement’ in line with the Retail Leasing Act.

Our ’28 day notice of termination without default clause’ was based on advice on how to administer licence administrations under the Crown Reserve Act, however due to community concerns we are changing our standards to be more in line with community expectations.

We are also ‘tightening performance requirements’ by improving Market management documentation of licence negotiations and tightening stallholder performance reporting requirements.

We have already begun making improvements to how we communicate with stallholders and the community by posting minutes and meeting agendas online and establishing a direct email address to the market committee.

What is going to happen to the two stallholders whose licenses were terminated?

All current and future licence negotiations will be conducted under our new processes. This includes the two stallholders in questions.

For privacy reasons, Council does not comment on individual's licence negotiations or breaches of their licence agreements. Breaches typically include repeatedly not opening stores, abusing customers, refusing legal refunds to customers, non payment of rent, refusing to maintain or improve stall holdings, refusing customer receipts, and or selling pirated goods.

Individual’s breaches of licence agreements can have negative effects on the market as a whole as they can impact customer experience and the Market’s reputation as a friendly community market.

Is Council changing the Market?

It has been suggested that the market will be turned into apartments or a mini Chadstone, or that chain shops will be introduced. This is all simply incorrect. There is no interest whatsoever in introducing chain shops or losing the diversity of the market. It defies the market philosophy.

To demonstrate its long term commitment Council has a current significant capital works plan for the market to put a roof above the roof, to decrease ambient internal temperatures in the market, reduce leaks onto traders’ product and allow water and solar power capture.

Moreover, firstly the Crown Grant forbids the development of the Market into anything other than a market, and secondly Council does not own the land and could not sell it even if it wanted to!

How does Council balance stallholder’s commercial interests and community needs?

Council and the Market Committee are working hard to make the Market successful for everyone. Naturally, individual stallholders have individual interests that are not always in keeping with what’s best for the market as a whole. We, the Council and the Committee, need to manage the market for all stallholders and the community. We intend to keep the Market as a place for everybody to shop and find quality produce with a diverse mix of products for any budget.

Probably the biggest threat to the South Melbourne Market comes from the local supermarkets which keep popping up around South Melbourne. To compete against them it is critical that the Market continues to differentiate itself and to stay fresh and relevant. The reason that so many people love South Melbourne Market is its special ambience and atmosphere – friendly, lively and rooted in the community. It is what makes the Market tick, and changing this magic mix would be foolish and counterproductive.

Are rents for stalls at South Melbourne Market higher than other places? Does this make prices expensive as a result?

Council wants to do all it can to keep costs down for stallholders and shoppers alike. That’s why rents at South Melbourne Market are lower than Queen Vic and Prahran Markets.

Prices are not high. South Melbourne Market prices are marginally cheaper than supermarkets, and around 20% cheaper than Prahran Market.

Why are stallholders being thrown out of the market?

Since 2009, 21 stallholders have left the market. This is from a total of more than 140 stalls.

half (10) were sales/transfers,
seven were voluntary (retirement, non-viability, move o/s etc),
two were for repeated breach of licence (attendance and behaviour)
and two were encouraged (but agreed) following non-viable performance.

But Council and the Market Committee understands the concern that people have shown about particular licences and the way that they are negotiated. Our recent decision to defer stallholder’s terminations until a review is conducted was in direct response to community concerns raised by the public at the South Melbourne Market Committee meeting. We hold these meetings monthly, they are public meetings and we encourage anyone in the community to attend.

The Market is changing completely. Turnover is high.

It’s true that the market is changing – but that is nothing new. As the focal point for our community, it has always changed to reflect that community. The important thing is that the range of stalls and services is being expanded not reduced. The Market will continue to be a place for everybody to shop, to find quality produce and mixed goods to suit every taste and budget. The Market has also evolved to reflect changes in our community, with stalls now offering Polish, Turkish and Spanish products.

From a total of more than 140 stalls the actual turnover rate for the past two and half years is 6% a year. Of this 6%

7 (33%) voluntary
10 (48%) transfer
2 (9%) terminations (debt, late, behaviour)
2 (9%) terminations agreed timelines

Are stalls being enclosed like ‘shops’?

In a nutshell, no. In ten years, only two stalls have been enclosed.

The Council just wants to make money from the market!

That’s simply not true – and the figures back this up. Over the past nine years the Council has invested $13.2m in capital. Major projects include:

Major Improvements - $8.8m – 2004-2007
New Sub Station - $1.5m – 2009-2011
Stalls, Sprinklers, Air Curtains - $1.0m – 2009-2011
Vegie lane Roof - $0.6m – 2010-2011

The Market generates around $4.3m per annum. In direct expenses, the Market spends around $2.8m per annum (cleaning, maintenance, marketing wages etc). The ‘remaining’ $1.5m is expended on capital investment along with Council overheads (IT, finance, HR, etc)

Council wants to get rid of the community feel at the market.

The reason that so many people love South Melbourne Market is its special ambience and atmosphere – friendly, lively and rooted in the community. It’s what makes the Market tick, and changing this magic mix would be foolish and counterproductive.

And the Council and Market Committee want to do their best to keep this community feel alive. To that end,

Busking has got stronger and stronger, with mostly local performers.
More benches and rest spaces have been created.
School tours are increasing, helping to create the next generation of Market customers.
Market tours are a strong development.
The Market has more and stronger links than ever with charities, especially community-based ones.

The Market Committee is committed to working with traders to ensure that the offer has a broad appeal, and continues to be a meeting place to draw the broad mix that our city includes. We are, as always, committed to improving the Market and we want the Market to be sustainable and viable long into the future. We need to balance the market we love and its community feel, with its long term social, economic and environmental viability, but the ambience and feel of the Market will not change.

What is the Market Committee and who is on it, and what guides their decision-making?

The purpose of the Committee is to oversee the Market’s performance and direction, ensuring its financially viability, its pre-eminent position as a community resource and its position as a dynamic retail competitor. Three Councillors, three independent community members and the Market Manager sit on the Market Committee.

For more information take a look at the:

Have your say

We will always welcome community feedback on the Market, its stall makeup and its management policies. Please come to the next South Melbourne Market Committee meeting. Everyone is welcome.

Contact

For more information contact the South Melbourne Market office:
Telephone (03) 9209 6295, Fax (03) 9645 7628, Email smm@portphillip.vic.gov.au