Lismore Shop and Post Office
Through discussion an analysis of the idea the shop/stores becoming a community venture is represented in the table below.
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Strengths |
Weaknesses |
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· Much valued island facility and service. · Is a social hub for some residents · PO and shop are a combined entity that can provide a modest income/profit · Provides employment for islanders |
· Use has been reducing and alternatives found. · Premises are in need of modernisation · No accommodation · Deliveries and stock management a challenge · No mobile phone signal · Parking and pot holes problematic |
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Threats |
Opportunities |
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· Possible closure of both shop and PO · A new party purchasing could lead to a repeat this cycle with possible of loss. · PO postmaster role could be lost
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· Lots of advice and guidance available · Enhances community cohesion and sense of place · Creation of community investment fund. · To relocate · Attraction of/access to grants · Community likely to get what it really wants from the shop. |
There are a number of websites that provide information and guidance about community shares and community ownership support.
https://communitysharesscotland.org.uk
https://dtascommunityownership.org.uk
Our first trial regarding community empowerment is about the shop and Post Office.
Results of the Community Trust Survey about a Shop and PO on Lismore
There were 109 responses to Q1 and Q2
Q1 98% think a shop is important 76% saying it is extremely important
Q2 100% say a PO is important 78% say it is extremely important
85 responses to Q3, Q4, and Q6 – 26 people left their contact details
Q3 80%% approve of the Trust exploring the idea a community shop and post office
Q4 31 said they were interested in assisting the development of a community shop and post office
Not all 31 left their contact details!
Q6 51% of respondents said they were members of the Community Trust.
Next steps
The Trust will explore the idea of a community shop and PO with the help of some of those who offered to assist. This does not replace or prevent a private sale by the owner.
Come along and discuss the idea of a community shop and Post Office on Lismore.
at the Public Hall on Saturday 10th June anytime between 11:00 and 3:00
Frequently asked questions
1) Why is the Trust looking at the idea of a community run shop and Post Office?
The current owner is selling after taking it over some 2 years ago. While the simplest and easiest solution is to find another buyer the community could, if conditions and circumstances are right, purchase it.
2) How much is it being sold for?
The price is negotiable and there is not a specific figure at present as it depends on what is included in any sale but initial figures are in the region of £40k.
3) What is the turnover and profit margin?
The Post master is a salaried position at about £17k a year. The stores, or shop, turnover varies as do the profit margins on different goods. The approx. turnover can be assumed on current arrangements to be about £200,000 a year which very approximately brings in about £30,000 a year. There are then expenses like rent, insurances, stock delivery costs, utility payments and wages. The wage bill will depend on how much time an owner is in the shop running things.
4) Could the shop and Post office close?
Yes. The shop and post office could close unless there is a buyer or the community have a clear business plan and funding arrangements in place to take it on. The current owners don’t want to see closure.
5) What happens if it closes?
The services would be lost and if they were started again, they may not be available in the same format and new arrangements could be very different (probably less favourable) from how they are now.
6) How do the community feel about the PO and shop possibly closing?
A survey conducted in mid-May with over 100 responses suggested there was universal support for the importance of a PO and only two thinking a shop was not crucial to the island. The survey indicated that many residents were concerned that the shop/stores provided a social an emotional focus to a significant number of islanders.
7) Are there buyers in the offing?
From marketing the business, a number of prospective buyers have asked for further information. An “off island” purchaser is now considered unrealistic due to the narrow financial margins and availability of accommodation/housing. There is “on island” interest but no firm commitment.
8) What’ s putting buyers off?
It’s not really clear but the narrow profit margins linked to the amount of work and effort needed to make the initiative a success along with the trading position and the size and condition of the facility are thought of as key factors.
9) Would the Community think of relocating the shop/stores PO?
Yes, some of the challenges of the current arrangements are recognised (size, lack of storage, parking) and the Trust is in a strong position to look at relocating/building/renovating a new shop /store.
10) So how would a community purchase work?
The thinking is to offer shares that would raise enough money to buy the business, develop it somewhat and potentially, at a later stage, through a wider share offer, create new stores and PO. There would be a properly convened board to oversee practice with an employed manger and staff.
Notes from the working group meetings
29th October 2023