Case Studies  /  Hyde Heath Village Shop

The Village Shop

For a village to thrive, it needs a number of core facilities. For many of us these include, a church, public house, a school , a post office and a shop, not necessarily in that order of importance. It also helps if there is some local employment. These tend to be the characteristics which attract people to such communities. When any of these core facilities come under threat it is no use just talking about it and blaming others. Talkers need to become ‘do-ers’

When the then owners of the Village Shop and Post Office in Hyde decided to close, in January 2001, the village was given nine weeks notice.  The ‘bombshell’ was first addressed by a local parish councillor calling a public meeting. The meeting resolved to form a working party.

Our priorities were

We also knew that if a new business was to succeed a prolonged period without a shop in the village would make the task even more difficult.

Location was easy; as there was no alternative site to the existing shop which was not an option. Demand and funding was established by a questionnaire with the nucleus of staffing coming from assistants in the former village shop. Discussions with the Village Hall Management Committee resulted in the Working Party hiring a small Rovakabin which was sited on the Village Hall Car Park.

Core products and services had already been identified from the Questionnaire. Our next concern was to acquire the necessary shop fittings, computer and soft ware to support the sales strategy. In this regard we were helped by the former shopkeepers who were keen to realise some cash from their shop assets.  The former shop closed on Saturday 31st March 2001 and the new shop opened on time on Tuesday 2nd April (1st April was Easter Monday) with the help of dozens of villagers who helped in the fitting out.

The Working Party of four people had different skills which complemented each other. In addition we had virtually the whole village behind us. In particular, because the exercise was time critical we sought finance from within the village rather than go through the protracted process of seeking grants etc. As a result we had offers of unsecured, interest free with no repayment terms, loans totalling £25,000. We called for only 50% which raised approximately £11,500 from 143 individuals. This was preferred to the no doubt easier course of raising the money from a few individuals. With so many people with a financial commitment it meant that they all had a vested interest in making the shop viable.

We also had longer term plans which were finally completed earlier this month when a new purpose built rented shop of about twice the size of the Rovakabin, was opened in a new extension to the Village Hall. The extension was funded by a legacy to the Village Hall, with the shop fittings being financed by grants from the Countryside Agency, Bucks County Council, Chiltern District Council and Little Missenden Parish Council.

In the meantime the business has been converted from a private limited company to a not for profit Industrial and Provident Society with about 120 members each holding £10 shares. Provided we either retain our surpluses within the business or distribute them to the community, corporation tax liabilities will not be a concern.

Apart from the first few weeks in 2001 the shop made a profit every week until it had to relocate its temporary premises whilst the extension was being constructed. Despite the loss of virtually all our passing trade we still managed to break even. Our paid staff totals 26 but the average full time equivalent is only 1.4. Management is undertaken on a voluntary basis.

Whilst it is still early days in the new shop which has much higher overheads such as rent and depreciation on new equipment, we are encouraged to believe that we shall be able shortly to commence a programme of repayments to our loan note holders.

We are all very proud of what has been achieved in Hyde Heath which shows what can be done if there is determination and the community gives the project its wholehearted support.

The above example of what can be done has been described to a Wiltshire Village near Swindon faced with the same problems as Hyde Heath. This village has now reopened its village shop along similar lines to that of Hyde Heath. If you want to read a little more about our project in Hyde Heath, please visit www.hydeheath.com.