Market Trading,
Shops & Businesses

It is generally accepted that a well run market is an attraction for tourists and local people. A market is essentially a gathering of people to buy and sell commodities, but a market is much more than the goods being sold, it is people that make a market! A busy market is a filled with the hustle and bustle of social interaction which can generate a real buzz about town. A well run market will revitalize an ailing high street and stimulate the local economy. The 2008 report by the ‘Local Authority Forum on Farmers Markets’ supports this view.

While this type of research has shown that markets and are of real benefit to a local economy. It is quite common to hear the opposite view being expressed, that "markets have a negative impact on local shops and businesses".

It is argued that the low costs associated with running a market stall may give market traders an unfair advantage over shops and businesses who see markets as unfair competition. This argument has sometimes created animosity between market traders, shop keepers and business owners.

However there is legislation in this area that counters the argument that market trading is unfair competition for shops and businesses.

The European Services Directive which came into force in Ireland in 2010, has clarified the situation with regard to market trading and competition.

The Services Directive states that "A local authority cannot use proof that an economic need exists for providing a product or service or the effect of the sale of a product or service on others, to decide on an application for a casual trading licence." (The granting of authorization). This means that the argument that market traders will have an adverse effect on shops cannot be used as an argument against market trading. This was spelt out in the Services Directive Guidelines issued by the Dept. Enterprise, Trade and Employment in 2009.

Article 14 of the EU Services Directive was written into Irish law as Article 20(1)(e)(i)(ii)(iii) of Statutory Instrument 533, European Union (Provision of Services) Regulations 2010.

Competition between shops and market traders is therefore the same as between one shop and another. A supermarket, newsagent or chemist cannot, for fear of competition, prevent another supermarket, newsagent or chemist from establishing premises in a town. The same rules applies to markets, shops and businesses. All economic activity in a town is open to competition.

It should also be pointed out that shops do have some advantages over market traders.

1) In terms of retail space for the sale of product, a typical market stall is 3 meters wide, which may be the same size as an average shop window.

2) Shop keepers do not have to set up and pack away their shops every time they wish to trade.

3) Shop keepers do not have to close their shops every time the wind blows, or suffer all the vagaries of the weather.

There is also nothing to stop a shop or business from joining their local market!