Minister: lack of support threatens "viability" of Retail Association

Friday 01 March 2019

A separate group set up with a £100,000 States grant to promote retail is to become part of Jersey Business instead, following funding problems.

The Minister responsible for the sector, Senator Lyndon Farnham, has said the Jersey Retail Association's (JRA) "funding model", based mainly on membership fees, has not proved to be viable. There are currently 51 members listed on the association website, out of up to 1,000 businesses in the retail and wholesale sector, according to the 2017 Jersey Labour Market report.

The association was launched in 2018 as an industry body to be the voice of the sector, and represent retailers across the island.

Senator Lyndon Farnham granted the association a £100,000 one-off grant in July 2017 to help it “secure income levels to be self-funding by the end of 2018 and not reliant on government support."

Pictured: the ministerial decision setting out the funding for the JRA.

The Ministerial decision stated that all future funding needs would have to be raised through "membership fees and/or other JRA activity,” adding that the association aimed to raise sufficient income from those within an year to cover future annual operating costs.

Pictured: The JRA hoped to raise enough money to cover its operating costs within a year through memberships and other activities.

The JRA website states that retail businesses can join for “as little as £4.17 a month” to gain access to “information, advice and support from experienced retailers,” as well as quarterly meetings, monthly emails and exclusive rates for seminars and JRA trainings.

However, it appears that membership take up has not been has expected. While the retail and wholesale sector consist of over 1,000 businesses, and over 7,600 employees in Jersey, only 51 members are currently listed on the Association website.

In their ‘Retail in Jersey' report, the Economic Affairs Scrutiny Panel had highlighted the Association's “uncertain” future due to a lack of financial stability and suggested a “long-term funding strategy” be established.

In his response to the report, Senator Farnham said that the “initial membership funding model for the Association” was “no longer viable.” The Association will therefore move its “operational activity” within Jersey Business Limited, a move the Minister said had “clear benefits and synergies.” 

Pictured: Lorie Rault, the Association's Chief Executive, said the move to join with Jersey Business was a positive one. 

Lorie Rault, the Association’s Chief Executive, said that while the move might sound negative, it was actually “very positive.” “The Minister is actually saying they want to look at a better way of funding. He has recognised the work we are doing,” he said. 

Ms Rault also explained that a new way of funding would allow the association to spend, “...less time trying to find memberships and more time supporting the industry.”