South Harting (Harting Stores)
A Successful Long-Term Solution
With their shopkeepers anxious to retire and no buyer in sight, villagers in Harting, West Sussex, set up ‘The Friends of Harting Stores’ backed by an action committee, broadly representing the community, to improve shop sales and demonstrate local support. Good publicity in local and national media fuelled interest but it became clear that no prospective shopkeeper could afford the purchase price of the premises and to have sufficient resources to run and develop the shop.
Advised by ViRSA, the next step was to form a Village Shop Association, set up under the Friendly Society Acts, which within a few months raised nearly £60,000 and enabled the Association to provide 40% of the cost of the premises and form a partnership with new shopkeepers. The latter would have to find the remaining 60% of the purchase price of the property, still a substantial commitment.
Eighteen months after the launch of the ‘Friends’ enthusiastic new shopkeepers are now installed in Harting Stores and their enterprise is already, within the first few weeks, producing substantially increased turnover. The successful completion of this venture has been achieved by generous support from across the community, over a third of whom have contributed; by the work of a truly representative management committee; and because the village recognises that the best hope of keeping their shop is to give their shopkeepers the opportunity to run a profitable business.
A number of potential lenders found it difficult to grasp the benevolent nature of the Association’s involvement and were unable to react quickly enough to provide a mortgage for the new shopkeepers. Fortunately, Barclays Bank recognised the investment potential, reacted immediately and enabled the enterprise to be successfully concluded.
Andy Berrow, Barclays Head of Small Business for the Petersfield area, commented – “Barclays is pleased to have been able to help Harting Stores. A lot of local people see it as a social lifeline as well as a convenient place to shop. There was a wonderful response from the village in raising funds through the Association and we are delighted to be involved in such a worthwhile project.”
Article from Talking Shop, Issue Eight. Summer 1997
Article by Peter Tuke, Harting Village Shop Association Limited
The South Harting Success Story
After coming perilously close to closure, the village shop in South Harting is thriving. Good news for those who live in the village because it is vital to their way of life and it is increasingly being used by people from the surrounding countryside. Good news also for the environment with the attendant reduction in ‘shopping miles’.
In 1988 when the shop had briefly closed, residents Lord Caldecote and Commander Peter Tuke had both been involved in securing new shopkeepers. In 1995 the shop was in danger of closing down for good, but was saved through the support and financial commitment of the local community. In January 1996, anxious to avoid another crisis, they investigated ways of securing the long-term future of the shop. They sent out questionnaires to sound out support, and the result was a packed public meeting. At this stage, they were helped with valuable advice from Derek Smith, founder of the Village Retail Services Association (ViRSA), and from Alan Wyle, Retail Adviser for Action in Rural Sussex.
Thanks primarily to press releases initiated by Derek Smith and ViRSA, Harting’s efforts to secure the future of the shop received extensive exposure in the local, national and trade press, television and radio. When it became clear that the cost of purchasing the property and investing in the new business was beyond the scope of potential new shopkeepers, on the advice of ViRSA, the Harting and District Village Shop Association Limited (HVSA) was incorporated, with limited liability, under the Industrial and Provident Acts. The rules of the Association enabled it to raise funds through the issue of shares and loan funds. Approximately £57,000 was raised within 5 weeks. This put HVSA in a position to contribute 41% of the purchase price for the freehold of the shop premises and made it possible for new shopkeepers to buy into the shop business and a share of the freehold of the property at an affordable cost.
New shopkeepers took over Harting Stores in the summer of 1997 under a partnership arrangement with HVSA. However, when they left in April 2003, the partnership was dissolved and HVSA purchased their share in the property, thus aquiring 100% of the freehold. HVSA also owns the fixtures and fittings. The shop is now leased to the present shopkeepers, who have transformed the shop and greatly increased its turnover. However, the shop was badly in need of modernisation and new equipment. Items such as a new Electronic Purchasing and Ordering System (EPOS) – which electronically reorders stock when supplies are low – improved refrigeration facilities, new shelving, flooring and lighting were all needed. HVSA, again greatly helped by advice from Alan Wyle, were able to secure grants of £10,000 from The Countryside Agency and £5,000 from Chichester District Council, contributing a further £11,000 from its own resources to a £26,000 refurbishment. This financial support has helped to improve both the high quality service and range of goods – particularly locally sourced fresh produce.
Alan Wyle thinks that Harting has shown a way forward for other rural communities. “Our role is to identify problems and provide practical help to villages in Sussex, so they remain vibrant places in which to live and work. Our rural regeneration programme in Sussex has enabled villages like South Harting to keep their local shops open.” The shop has a close working relationship with the local Post Office and together they provide an increasing proportion of local needs.
Article from Autumn/Winter 2004/5 edition of Ecology Building Society News
Case Study
The village shop in South Harting is to undergo a £26,000 refurbishment with assistance from Chichester District Council and the Countryside Agency. This support is helping to improve the high quality service and range of goods, particularly locally sourced fresh produce offered to the people in Harting and the surrounding area.
The Countryside Agency has made a grant available of £10,000, the Harting and District Village Shop Association is contributing £11,000 and now Chichester District Council has allocated £5,000 from the Village Shop Development Scheme. This will allow the South Harting shop to undergo a long overdue refurbishment.
The village shop project in South Harting has been a remarkable success story for rural business. In 1995 the shop was in danger of closing down but was saved through the support and financial commitment of the local community, whose residents place great importance on the contribution the village store makes to the quality of their lives. Lord Caldecote and Commander Peter Tuke had both been involved in securing new shopkeepers in 1988 when the shop had briefly closed and were anxious to avoid a similar situation developing. In January 1996 they formed a steering committee, with representatives from across the community, to investigate ways of securing the long-term future of the shop. They sent out questionnaires to sound out support and these were followed by a packed public meeting. From the outset they had valuable advice from Derek Smith, founder of the Village Retail Services Association (ViRSA), and from Alan Wyle, Retail Adviser for Action in rural Sussex.
Helped considerably by press releases initiated by Derek Smith and ViRSA, the efforts of Harting to secure the future of its shop received extensive exposure in the local and national press, television and radio. Of special value was coverage in the trade press, which sparked interest amongst possible purchasers of the shop. However, it soon became clear that the cost of purchasing the property and investing in the business was beyond the scope of potential new shopkeepers.
On the advice of ViRSA, the Harting and District Village Shop Association Limited (HVSA) was incorporated, with limited liability, under the Industrial and Provident Acts. The original steering committee became the management committee of HVSA under the joint chairmanship of Lord Caldecote and Peter Tuke. The rules of the Association enabled it to raise funds through the issue of shares and loan funds. Approximately £57,000 was raised within 5 weeks and this put HVSA in a position to contribute 41% of the purchase price for the freehold of the shop premises. This made it possible for new shopkeepers to buy into the shop business and a share of the freehold of the property at an affordable cost.
These conditions had a wide appeal, increased interest and new shopkeepers took over Harting Stores in the summer of 1997 under a partnership arrangement with HVSA. However, when they left in April 2003, the partnership was dissolved and HVSA purchased their share in the property thus acquiring 100% of the freehold. HVSA also owns the fixtures and fittings and the shop is now leased to the shopkeeper.
Since taking over in April 2003, the present shopkeeper, Peter Cragg, has transformed the shop and greatly increased its turnover. However, the state of the shop and its equipment is in need of modernisation. It is the Harting and District Village Shop Association’s responsibility to provide the infrastructure to allow the shop to run smoothly. The need is for a new Electronic Purchasing and Ordering System (which electronically reorders stock when supplies are low), improved refrigeration facilities, new shelving, flooring and lighting.
Alan Wyle thinks that Harting has shown a way forward for other rural communities.
He says: “Our role is to identify problems and provide practical help to villages in Sussex so they remain vibrant places in which to live and work. Our rural regeneration programme in Sussex has enabled villages like South Harting to keep their local shops open.”
The improvements will help the village shop expand the range of goods on offer for the benefit of its users. The shop has a close and excellent working relationship with the local Post Office and together they are providing an increasing service to the village and surrounding countryside.
The Association anticipates paying back its loan stock by 2014 and the mortgage on the property shortly afterwards. Its rules allow it to support other retail enterprises for the benefit of the local community.
Peter Tuke, Chairman of the Harting and District Village Shop Association, says: “About a third of households in the Hartings, Nyewood, Elsted and Treyford have supported the shop enterprise by taking up shares and providing loans. This shows how vital our residents consider our shop is to our well being and it is this support which has secured the future of the shop for the foreseeable future. Appreciation of the improved service being provided by Peter Cragg, since he took over, is shown by nearly 80 new shares being taken up in the 8 months since Christmas 2003. We are all most grateful for the grants, which will help us to provide him with the facilities needed to continue improving what he offers us.
’Councillor Andrew Shaxson, Portfolio Holder for the Environment, says: “ The Council has helped village shops in Cocking, Graffham, Wisborough Green, Kirdford, Camelsdale and Lurgashall improve their facilities for the benefit of customers and the sustainability of their business. The village shop is a focal point in the community and it is imperative that we help to keep them open. Chichester is a rural district and these shops are often a lifeline for their users.”
Information from http://www.chichester.gov.uk/your_council/village_development_scheme_helps_south_harting.cfm 10 August 2004