Melmerby and Fellside Village Shop LTD.

Starting up

The feasibility study, completed in November 2003, showed that the area had a resident population of around 680 in approximately 325 households.  Fifty-five percent of the resident population consisted of people of in the 25 to 64 year age range, while 20% comprised people over 65 years of age.  A caravan park located in the village had 41 fixed and 3 touring pitches indicating a significant caravan visitor population.  This diverse range of potential users underlined the need for a village shop that could stock a wide range of merchandise. Since the feasibility study showed such positive results the villagers decided to proceed with the establishment of a new shop.  Crucially, a number of new people, including an accountant, a local authority development officer, a local farmer and parish councillor, and a former journalist and businesswoman, volunteered to join the committee at this point, thereby bringing in a wider range of skills and experience.

One of the first steps was to produce a business plan setting out the aims and objectives of the project, time-scales and cash flows.  This business plan took two months to complete during which time input was sought and obtained both from the community and specialist advisors.  Once the business plan was complete, and confidence assured in the viability of the shop, the formal association with Enterprising Communities was brought to a close and the Melmerby and Fellside Village Shop Ltd was incorporated as an Industrial and Provident Society, a bona fide community co-operativein April 2004.

During the process of securing the shop premises, the Melmerby Shop Co-operative created employment contracts and other policies, secured insurance, and advertised for staff.  It was realised that finding the right person to be shop manager was going to be of key importance in the success of the shop:  the individual had to be entrepreneurial but also willing to be accountable to the co-operative and its members.  Enterprising Communities, local business people and Co-operative Business Consultants all helped with the process of choosing the manager. 

By far the most time-consuming and delicate aspects of the process of establishment were the securing of new premises to house the shop and the negotiation of a lease for the premises through solicitors.  In a small community this issue had the greatest potential to be divisive.  After a negotiation process that took about six months a lease for three years was eventually agreed.  Once the shop was secured, conversion of the building began.  The process took about six weeks, using local contractors.

Funding was of paramount importance in making the vision of a community shop a reality.  In total approximately £60,000 was secured from public funders for start-up, revenue and capital funding. The funds were made available over a three-year period, after which it was envisaged the shop would be self-sufficient.  The villagers also obtained crucial in-kind support from Penrith Co-operative Society in the form of donated shop fittings.