Home / Knowledge / News / Weak economy gives new momentum to retail rents campaign
Weak economy gives new momentum to retail rents campaign
22
Jul '08
The British Retail Consortium (BRC) is welcoming the new impetus given to retail rents reform by some of retailing's biggest names.

Arcadia owner Sir Philip Green and Lord Harris, Chairman of Carpetright, are among those now calling for commercial landlords to accept rents monthly rather than quarterly in advance.

The BRC believes its two year campaign has lead to monthly terms becoming the norm on new and re-signed leases. But, for the rest, toughening trading conditions are making the extra costs and cash flow difficulties of paying quarterly in advance more significant.

The BRC estimated the survival of this historic rents practice adds £145 million a year to retailers' costs.

The retailers' organisation is calling on landlords to respond to the economic slowdown by offering flexibility, even on existing leases, where that is what businesses want.

British Retail Consortium Director General Stephen Robertson said: “The BRC has made significant progress in establishing monthly rents as the norm but today's tough trading conditions mean the impact of quarterly leases still out there is that much greater.

“At a time when retailers are battling a range of rising costs in order to keep shop prices and overall inflation down, the new momentum given to rents reform by some of UK retailing's key figures is welcome.

“Requiring rents three months in advance is at odds with standard business practice. It's a historic and costly practice, rooted in the days when communications were governed by the speed of a horse.

“So far this year a number of retailers have gone into administration. Seeing retailers driven to the wall is on no-one's interest. By agreeing to a fairer rents regime, landlords will be contributing to the retail prosperity on which they themselves depend.”

The BRC's case to landlords is:
• Asking for rent three months in advance is at odds with standard business practice.
• Landlords are adding £145 million a year to the costs of retailers who are also struggling with sharply rising commodity and energy costs.
• It is in landlords' own best interests to see a thriving retail sector. They lose too when retailers are driven out of business by excessive costs.
• Landlords cannot argue they are running a credit risk requiring up-front payment when they are dealing with substantial, reputable businesses.
• Monthly payment would significantly ease cash-flow pressures, especially for hard-pressed smaller retailers.

British Retail Consortium


Must ReadView All

Apparel/Garments | On 25th Jun 2017

Half of 7,000 new apparel online each day target women

Adobe has released its first Digital Price Index for apparels,...

Textiles | On 25th Jun 2017

First Insight, Chico's FAS enter partnership

First Insight, a technology company transforming how retailers make...

Apparel/Garments | On 25th Jun 2017

Expand changing use of social and web resources

With over 400 million impressions to date and web traffic of over two ...

Interviews View All

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search