£128k loss for ‘vibrant’ Southport Market after ‘another tough year’

Southport Market made a loss of almost £128k last year, with food and drink sales falling as the local hospitality sector continued to struggle.

Food sales at the Sefton Council-run venue fell by 16% compared with the previous year, while drink sales were down almost 10% in 2025-26 according to a report presented to the council’s overview and scrutiny committee yesterday (Tuesday 3 November).

The market, which reopened in July 2021 following a £1.4m refurbishment, generated income of nearly £291.5k last financial year against an original business plan forecast of £537k, which had anticipated a £102k profit.

The report describes its fifth year since reopening after the refurbishment as ‘another tough year’, pointing to rising costs, pressure on consumer spending and disruption caused by improvement works around Market Street and King Street. The works created ‘significant (and unavoidable) disruption’, which had a direct impact on trading conditions, it noted.

The improvements, completed in December 2025, included pedestrianising Market Street and making King Street one-way, as part of the wider Les Transformations de Southport regeneration programme.

Another problem was the failure to bring back outdoor markets earlier, which had been expected to generate £156k a year under the original business plan. ‘Due to resource and operational issues, until now, the outdoor markets have not been possible to resurrect,’ the report states, although these are now being brought back.

Unlike traditional market stalls, traders at Southport Market pay rent based on their turnover instead of a fixed amount, meaning the council’s rental income rises and falls with their sales. In year five, income from rents and recharges fell by £82k to £266.7k.

The market’s running costs were almost £454k, leaving a deficit of £162k before the council covered almost £35k in excess utility costs. The reported £128k loss also excludes historic borrowing costs.

Lib Dem Cllr Mike Sammon asked for a more detailed breakdown of the expenditure, with Mark Catherall, who presented the report, explaining that he could provide a full breakdown after the meeting, but the £454k costs did include things like staffing, cleaning, utilities, marketing, repairs and everything from napkins and condiments to the regular removal of grease from the building.

Reform Cllr Charles Denton asked about borrowing, with Catherall confirming that the £1.4m refurbishment in 2021 had been funded entirely through government and Liverpool City Region grants. However, borrowing associated with an earlier £3.2m redevelopment, which reopened in 2012, was still being paid for under a 25-year arrangement.

Despite the losses, Catherall told councillors the market had never been intended simply as a commercial operation: ‘The reason we did this in 2021 was to try and start the regeneration of Southport again,’ he said.

Before the refurbishment, around 80% of the market’s units were empty and the building was already operating at a loss. Five years on, it is now home to ten businesses, eight of them based in Southport, supporting 58 jobs with a ‘long waiting list’ for new sellers to take on units.

The report also highlights traders including 600 Degrees, Pitamu, Lenny’s and Cake Corner, which have expanded into mobile and outdoor event trading beyond the market.

Councillors were largely complimentary about the venue. Lib Dem Cllr Braham said he had visited the previous week and been impressed by its ‘vibrancy’, something his colleague Cllr Sammon agreed with.

Committee chair, Labour Cllr Sam Hinde, questioned how the market’s wider contribution could be measured. ‘There’s a broader impact than necessarily a monetary one directly, is there?’ he asked.

Catherall agreed, reiterating: ‘The reason why we did the market was for that wider regeneration.’ He described the market as ‘the footfall driver in that area’ and said he hoped it would encourage new businesses into some of the empty units along Market Street.

‘It’s a catalyst for development across Southport,’ Cllr Lappin concluded, commending officers for doing an ‘excellent job’.

With the public realm works now complete, Catherall told councillors outdoor markets were being restarted on a monthly basis, with plans to develop the programme further.

Other improvements include additional outdoor seating on Market Street, a new bar in the events space and a new business plan looking at the market’s objectives, its mix of traders and how performance should be measured over the next two to three years.