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High-street’s Big Retail Guns Revolt Over Rent

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http://business.timesonline.co.uk/tol/busi...icle4363980.ece

BRITAIN’s biggest retailers have united against their landlords in an unprecedented rebellion and are calling for a radical change to the way in which they pay their rents.

The retailers are to tell landlords that they will only pay rent monthly in advance rather than quarterly. The revolt challenges one of the key tenets of the property industry and comes at a time when retailers’ sales have been hit by the credit crunch. The upfront payments have a huge impact on retailers’ cash flow.

The Sunday Times can reveal that 16 retailers, which between them account for some £2 billion of annual rent and occupy property worth about £40 billion, have signed up for the campaign.

They include Boots, Next, Argos, Arcadia, BHS, New Look, Carpetright, Carphone Warehouse, DSG and Debenhams.

The move is expected to be strongly resisted by landlords, who include pension funds such as Prudential and Legal & General as well as large property companies like British Land, Land Securities, Hammerson and Liberty International.

They will remind their tenants that they have signed legally-binding leases requiring them to pay their rent three months in advance. One property company chief executive warned: “The idea that we will roll over and let our tummies be tickled is way off target.”

They believe that property owners must become more flexible and accept that changes must be made in an industry largely unaltered for decades. One retailer said: “This has been coming for a long time.”

Some landlords have already conceded that a number of their retailers need help. At out-of-town retail parks it is not unusual for retailers to pay rent monthly. These negotiations are kept under wraps to avoid setting precedents.

It appears that the shops are getting worried. Won't be long before they are all demanding cuts in the rent they pay.

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http://business.timesonline.co.uk/tol/busi...icle4363980.ece

It appears that the shops are getting worried. Won't be long before they are all demanding cuts in the rent they pay.

And they will get it too, but only when high street shop fronts have been vacant for 8 months and the landlords have to realise the compromise... ah market forces, don't you just love 'em?

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This was in the Times also, another sign that retailers are feeling the pinch

"The Federation of Small Businesses is tomorrow expected to say that large groups have extended payment terms to their suppliers in an effort to ease their financial difficulties.

One company likely to be singled out is Alliance Boots, which changed its payment terms at the start of the year. It now takes 75 days to settle invoices, and applies a 2.5% settlement fee. The move has infuriated suppliers. "

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This was in the Times also, another sign that retailers are feeling the pinch

"The Federation of Small Businesses is tomorrow expected to say that large groups have extended payment terms to their suppliers in an effort to ease their financial difficulties.

One company likely to be singled out is Alliance Boots, which changed its payment terms at the start of the year. It now takes 75 days to settle invoices, and applies a 2.5% settlement fee. The move has infuriated suppliers. "

You'd get better behaviour from the Mafia.

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  • 399 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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