Southport Market recorded a loss of £127,546 in the 2025/26 financial year, according to a new Sefton Council report. The market fell short of its original target of £102,000 profit for the year, with the council attributing the shortfall to worsening pressures on hospitality businesses.
The market, located on King Street, houses seven hot food kitchens and one dessert offer, supported by a main bar and a large events space that can accommodate 200 people for private hire and ticketed events. It was repurposed and officially opened in July 2021.
Declining Sales and Rising Costs
The report, which will go before councillors at a Sefton Council scrutiny meeting next Tuesday (October 3), shows a 16.12% decrease in food sales and a 9.56% decrease in drinks sales during the year. The market's utility budget was set at £83,000, but spending reached £117,032 by year-end. Traders were charged for their actual utility usage, while the council covered the main landlord's supply.
Overall spending decreased by £37,071 to £453,957 in 2025/26, compared with £491,028 the previous year. Rent and recharge income from business owners totalled £266,656, down by £82,072 from the prior year. The council reportedly said this utility pressure is "being met centrally as with other Sefton ran assets".
Challenging Trading Conditions
The report attributes the income loss and overspend to trading conditions in Southport, public realm works impacting the market, and the inability to introduce outdoor markets. It also points to the national outlook for hospitality, which faces pressures from rising wage costs, reduced business rates relief and reduced disposable income among customers.
The report reads: "The hospitality sector and Southport Market specifically continues to operate in one of the most challenging trading environments seen in recent years." A target of £156,000 was set for outdoor markets in 2025/26, but due to resource and operational issues, these markets have not yet been resurrected.
The council said "major public realm works" as part of its 'Les Transformations de Southport' programme caused "significant and unavoidable" disruption to Market Street and King Street, impacting trading conditions and businesses in the market. The programme is a £2.5m regeneration project funded by the government's Town Deal Fund to create new public event spaces and boost the visitor economy.
Future Plans and Early Growth
With the public realm works now complete, the council is reportedly creating a new plan for how Market Street can be used, with the outdoor market budget being revised. Priorities for year six (2026/27) include creating a new bar within the events space, adding outdoor seating on Market Street, launching a new Southport Market website, introducing a customer ordering app, and recruiting a dedicated events and sales officer for the venue.
The report expresses optimism for the market's future, noting that early-year performance for 2026/27 is already showing growth compared with the previous year. A Sefton Council spokesperson said: "Southport Market remains a key asset for the visitor economy and driving footfall to the town centre, providing great food, drink and entertainment all year round.
"There is a substantial waiting list for new traders wanting to set up stalls in the Market and we are delighted that existing traders like 600 Degrees, Pitamu, Lenny's and Cake Corner have been able to use their units as a hub for impressive growth in their businesses.
"While figures for year five do show a reduction in income – which is in line with well documented national pressures on the hospitality sector – there was also a £37,000 reduction in expenditure costs and early year 6 performance already shows good growth compared with the same period in the previous year.
"The public realm enhancements in the area had an inevitable short-term impact on trade during the period in question, but the long-term benefit of these improvements will be substantial for the Market and for other businesses in this area of the town centre."
