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Seven years later, another document described another mercer in the area.Within the next ten years, the area developed into a leading market town and a major cloth trade was established.By the end of the century the street was known as Spiceal Street.Despite being overcrowded and cramped, many houses on the street had gardens as indicated by an advertisement for a residential property in 1798.In the 16th century and 17th century, Mercer Street rapidly developed and became cramped.
It has been an important feature of Birmingham since the Middle Ages, when its market was first held.
The name Mercer Street is first mentioned in the Survey of Birmingham of 1553.
This was a result of the prominence of the area in the cloth trade.
Houses were constructed close to St Martin's Church, eventually encircling it. On a map produced by Westley in 1731, other markets had developed nearby including food, cattle and corn markets with other markets located nearby on the High Street.
The slope drops approximately 15 metres (49 ft) from New Street to St Martin's Church.
Initially, a textile trade began developing in the area and it was first mentioned in 1232 in a document, in which one merchant is described as a business partner to William de Bermingham and being in the ownership of four weavers, a smith, a tailor and a purveyor.