Attempts by retailers to win more flexible terms from landlords received a boost yesterday as representatives from both sides met to explore the introduction of monthly rents.
John Lewis was among the retailers that met landlords including Land Securities and PruPIM yesterday, with attendees indicating that the possibility of monthly rent would be on the table in future negotiations with struggling retailers.
However, landlords are likely to demand compensation – most likely in the form of higher rent – in exchange for any shift away from quarterly payments, which retailers claim are inflexible and outmoded.
The British Retail Consortium, which led the delegation for retailers, is expected to make a statement on the issue today.
However, yesterday’s meeting – chaired by former Office of Fair Trading chief Sir Bryan Carsberg – is unlikely to result in the use of monthly terms for retailers that are not deemed to be in distress.