The social enterprise aims to pay a record amount to independent artists and producers, at more than £3.5m next year, after launching two new outlets.
The not-for-profit Scottish Design Exchange – which provides high-street retail space to hundreds of artists, designers and artisan food manufacturers – expects to more than double its turnover in the next 12 months.
It follows the unprecedented success of its latest hit Troon Kirk on Edinburgh’s Royal Mile, and the imminent launch of Foodies, its first food and beverage store, at Buchanan Galleries in Glasgow.
Both were set up to complement the existing Scottish Design Exchange (SDX) branches in Glasgow and Edinburgh.
Since its launch in 2015, the company has provided highly sought-after retail space, generating more than £6m in income, to hundreds of independent producers who would have paid outlets and galleries a commission, which could be as high as 60%.
SDX tenants pay a small, flat, monthly fee to rent space in its downtown stores, and keep 100% of their sales, so they aren’t penalized for the popularity of their products.
The seven-days-a-week permanent art market space, based in the Troon Building on the Royal Mile, has proven to be a huge success, generating record-breaking runs for its 21 small businesses since opening on July 1 last year.
Their income has proven to be life changing for all of them, with 18 of them having to register for VAT for the first time and many being able to work full time as artists as a result of their income growth.
In addition, the small design-based art business has created employment for 51 people and Tron Kirk Market has become one of the most visited places on the Royal Mile, both by tourists and locals.
All but one of the tenants said they received additional business support from SDX, compared to five who received support from Business Gateway, one from Scottish Enterprise and the same number from Creative Scotland.
Meanwhile, 14 people said they got all the raw materials for their products in Scotland, compared with six from England and one from Europe.
SDX CEO Lindsey Leroy, a former project manager at Shell, said the success of the Tron port has fueled business strength, and created opportunities for further expansion.
She said, “Just one of our outlets has created much-needed stability for 21 small businesses, allowing many of them to become full-time producers, and make a good living.
“As most of them buy their materials from other Scottish companies, we are helping to create a sustainable supply chain that benefits, not just traders, but the companies that supply them.”
Leroy added: “Since the Covid pandemic hit, SDX has gone from strength to strength and we expect further growth and expansion in the next few years.
“Despite the headwinds of a challenging economy, our economy has proven to be a strong and resilient business model.
“It is clear that consumers want to buy the kind of high-quality products that our artists and designers make, that reflect their skills, talents, and commitment to growing their businesses.”
Artist Lianna Moran, who has sold her work through SDX outlets, including Tron, for six years, said: “SDX promotes artists and helps us make our unique businesses successful, always striving to make it easier for us to make these big companies leaps and bounds and turn a profit.
“Growth in my business from Tron alone has allowed me to quit my part time job and focus on my technical business full time. The SDX team is very hands on and always willing to help with trading advice. It’s great to have their support.”
SDX signed a three-year lease with the Scottish Historic Buildings Trust, which operates the Tron building, last July.
Mystery has surrounded the future of the iconic 17th-century building – formerly Edinburgh’s main parish church – which sat empty for 50 years after it closed as a church in 1952. 2003.
Most recently, it hosted the Edinburgh World Heritage Gallery, but has remained vacant and unused since the pandemic lockdown forced its closure in 2020.
A spokesperson for the Trust said: “We are delighted to have SDX as our tenant at Tron and the first year of trading has been very successful. Not only have we created opportunities for the local artists they support but as a result Tron Kirk has been opened to thousands of visitors allowing them to appreciate the beauty and history of This important building.
Leroy said, “Despite the tremendous success we, our artists and producers have had so far, across all SDX properties, we think we’re still only scratching the surface.
“There remains an enormous untapped demand for our approach to be applied in different markets and venues, including in the food and beverage space.”
Foodies will offer retail space for up to 60 independent high-quality, specialty and artisanal food and drink products when it opens at Buchanan Galleries, Glasgow in mid-July, including specialty coffees and teas, honey, jams, chutneys, relishes, pickles, chutneys, biscuits, chocolate and oatcakes.