Sumary of Retail smackdown: Few winners, many losers:
- If you want to see a couple of industry sectors that are scared, threatened, and desperately trying to secure their own futures, check out the current stoush between shopping centre landlords and their retail tenants..
- “Base rates for new leases have fallen by up to 20 per cent but big chains are pushing for turnover-based rents and resisting landlords’ claims for online sales.”.
- Now, I’m not going to pretend that either side is a homogenous group, or that there aren’t a decent number of ambit claims trying to take advantage of uncertainty and economic weakness… Instead, it feels like companies are happily giving away some upside, just in case the worst happens again..
- Landlords, also fighting the last war, are imagining their rents ebbing away next time there a downturn, and want to make sure they don’t get left holding the baby..
- Retailers and retail landlords worried that, despite the bravado, the online threat is a clear and present danger?.
- At the same time, retail landlords are also trying to get those retailers to hand over a share of online sales..
- I think retail landlords – particularly those that own B-grade and C-grade shopping centres – are on a hiding to nothing..
- I’m using them here as an example, but there are many, many more.) Westfield centres are calling themselves ‘living centres’, now, as they desperately prepare for a different future…