As retail limitations reappear, retailers are resuming rent negotiations with malls
10 January 2022, Mumbai:
As Covid-19 restrictions in several states reduce mall opening hours and capacity, many merchants in all categories, including fashion, are starting negotiations with malls about bringing back rent relief.
Weekend curfews and evening retail restrictions have been reinstated in certain states, notably Delhi, while others, like Maharashtra, are following suit, fast enacting steps to halt the spread of Covid-19's Omicron form. Businesses are losing sales as a result of this, making it more difficult for them to pay shop rent.
The managing director of ethnic fashion firm Biba, Siddharath Bindra, told the Economic Times, "We would need to address all our landlords and find a proper solution." "We are rather sure that the majority of individuals [landlords] will adopt a proactive approach." Every day, business is dwindling."
Benetton, Jack & Jones-retailer Bestseller Retail, Vero Moda, Only, and Forever New are among the other fashion retailers that have begun conversations with malls where they have locations, according to ET Bureau. Restaurants are also seeking negotiations, since the 50 percent capacity regulation has a significant impact on them.
Due to high vaccination rates across the country, the third wave of the virus came as a shock to merchants, who were anticipating a rebound to pre-Covid sales levels or higher by the end of 2021.
Some retailers are hoping that if further lockdown measures are implemented, malls would once again give rent discounts or even exemptions.
However, an issue that mall owners have faced in prior lockdowns is that many malls are supported by big bank loans, and mall owners rely on rent from shop owners to meet their loan repayments, making them unable to grant long-term or considerable rent concessions.
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