×
122
Fashion Jobs
BESTEAM PERSONNEL CONSULTANCY LTD.
Sales Supervisor / Assistant Sales Supervisor (Fmcg)
Permanent · TIJUANA
BESTEAM PERSONNEL CONSULTANCY LTD.
Retail Operations Manager (Station in Kuala Lumpur, Malaysia)
Permanent · TIJUANA
BESTEAM PERSONNEL CONSULTANCY LTD.
Assistant Visual Merchandising Manager
Permanent · TIJUANA
BESTEAM PERSONNEL CONSULTANCY LTD.
Senior Sales Manager (Printing/Paper Packaging)
Permanent · TIJUANA
SHISEIDO
Senior Manager - Financial Planning & Analysis, Finance And Accounts
Permanent · Hong Kong
SHISEIDO
Contract Manager - Financial Planning & Analysis, Finance And Accounts
Permanent · Hong Kong
BESTEAM PERSONNEL CONSULTANCY LTD.
Merchandising Manager - Apparel And Sports Goods (Station in Shanghai, Prc)
Permanent · TIJUANA
BESTEAM PERSONNEL CONSULTANCY LTD.
Senior Garment Technician - Lingerie
Permanent · TIJUANA
BESTEAM PERSONNEL CONSULTANCY LTD.
Fabric Sales Manager/ Sales Executive
Permanent · TIJUANA
BESTEAM PERSONNEL CONSULTANCY LTD.
Factory Manager (Stationed in Bangladesh)
Permanent · CLEARWATER
BESTEAM PERSONNEL CONSULTANCY LTD.
General Manager (Stationed in Bangladesh)
Permanent · CLEARWATER
BESTEAM PERSONNEL CONSULTANCY LTD.
Logistics & Warehouse Manager
Permanent · CLEARWATER
BESTEAM PERSONNEL CONSULTANCY LTD.
National Business Trainee (3d Artistist / Designer) - 2-Year Programme
Permanent · CLEARWATER
BESTEAM PERSONNEL CONSULTANCY LTD.
Quality Manager
Permanent · TIJUANA
BESTEAM PERSONNEL CONSULTANCY LTD.
Divisional Sales Manager
Permanent · TIJUANA
SHISEIDO
Senior Manager - Omnichannel Strategy & Innovation, Digital Shared Services
Permanent · Hong Kong
SHISEIDO
Officer - HR Operations, Human Resources
Permanent · Hong Kong
NIKE
HR Manager/Assistant Manager - Hrbp (1-Year Contract)
Permanent · Hong Kong
BESTEAM PERSONNEL CONSULTANCY LTD.
Sales Executive
Permanent · CLEARWATER
TRIUMPH
Brand Merchandising Manager
Permanent · KOWLOON BAY
BESTEAM PERSONNEL CONSULTANCY LTD.
Marketing Executive / Marketing Supervisor / Assistant Marketing Manager
Permanent · CLEARWATER
BESTEAM PERSONNEL CONSULTANCY LTD.
Global Product Compliance Specialist
Permanent · CLEARWATER
Published
Oct 6, 2021
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Progress on more turnover-based rents held back by trust issues - report

Published
Oct 6, 2021

The increasing move towards turnover-based commercial property leases for retail has hit a stumbling block — trust.


Photo: Pexels


Although this form of leasing is seen as better suited to the operational needs of UK retailers, especially since the pandemic hit physical retail, it's being held back by “trust issues” around data sharing between landlords and occupiers. 

That’s according to a new survey of retailers and food/beverage operators who occupy more than 11,000 stores across the UK.

Although there’s “overwhelming support” for a move to turnover-based leases, “there is an element of distrust on both sides around how revenue data should be shared and used - despite there already being a successful model for their operation in the outlet centre retail sector”, according to the report by specialist asset manager Total Turnover Solutions (TTS).

A number of big names have switched to turnover-based rent deals following company voluntary arrangements in the past couple of years, but other — healthier — retailers are also looking towards turnover as the main criteria for setting rents. It comes after many years in which property values were rising and rental agreements allowed for upwards-only rent reviews. With many retail stores becoming less valuable due to the online boom and the pandemic, this has caused problems for retailers.

In its survey, 80% of respondents, supported a move to a revenue-responsive approach to leasing. Only 8% said turnover rents were unsuitable for their business, although most of these were showroom-based operations.

The report highlighted also “highly successful" outlet centres, such as the London Designer Outlet at Wembley and Bicester Shopping Village. These have had turnover leases as the norm for many years, but it said “they require precise data collection and analysis which, in turn, shapes the active management of centres”.

But the majority of brands and operators that want to move to turnover leases said they would only be willing to supply revenue data to landlords if the process was “secure, easy to use and their businesses could benefit from aggregated data perspectives about locations and be able to apply that intelligence to inform their future trading projections and performance measurement”.

TTS co-founder Mark Phillipson said: “For occupiers, turnover leases help de-risk their property liabilities and for landlords, they provide stable income in the form of the base rent with an additional revenue-responsive income stream which they can help boost through active asset management. 

“However, some landlords are concerned that occupiers may misrepresent turnover levels for their own advantage while some occupiers feel that turnover data may be used against them in some way. These ‘trusts issues’ around turnover leases must be addressed at once if we are to successfully rebuild the UK retail and leisure sectors after the trading damage done by the pandemic.”

The report also highlighted that, at present, the majority of landlords do not have the data infrastructure or asset management expertise to accommodate a switch to truly pro-active turnover-based leasing. 
 

Copyright © 2021 FashionNetwork.com All rights reserved.