It wouldn’t happen. Yet in the weird world of retail property you’re expected to pay for your premises three months in advance. No words could sum up the debate better than Patrick Blower’s cartoon on page 21. This is a medieval system inexcusably living on in the modern age.
If it wasn’t causing many retailers such financial hardship, it would be funny. In bad times more than ever, cash is king and the strong correlation between rent quarter days and retail administrations is the clearest proof that landlords’ demands are strangling their tenants.
Property owners have nothing to lose from a switch to monthly payments. They would still enjoy the same rental income and there would be no impact on property values. In fact, they stand to benefit because by helping their tenants’ cash flow, they reduce the risk of them going under.
Every retailer that leases property should back the new campaign for monthly payments. Far too often the industry’s lobbying efforts have been undone by petty rivalry and other priorities. But the calibre of retailers behind this plan presents a golden opportunity to win this battle once and for all and, for the good of the industry, they should work together to get their case together ahead of the September rent day.
And what of the shopping centre owners? Retail landlords talk a lot about partnerships with their tenants. There can be no better opportunity for them to demonstrate that this is more than just talk.
Grocers lead the way
When the price of oil started to fall after a long period of increases, who took the lead in passing on the savings to hard-pressed motorists? BP? Shell? Esso? No – it was Asda and Morrisons.
Whether it is articles on rip-off Britain or endless competition probes, grocers come under huge scrutiny. Yet this week has shown they are far more effective at responding to consumers than many faceless corporations in other sectors.
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