Our Managing Director Stan Gordon speaks out regarding the high rent wages in shopping centres killing food retailers.
Crazy rents. Relentlessly increasing utilities. Unaffordable penalty wages. How can retailers survive in an environment where their rent and overhead costs far outweigh their profitability?
I am outraged that the rise of rents in some shopping centres have, yet again, seen yet another victim in SumoSalad. This story is becoming all too common — a negative trend we’re seeing affecting businesses far too often. To attract and keep successful retailers in business, exorbitant shopping centre rents and staff penalty wages must drop!
And landlords should become responsible for their unconscionable behaviour. At Franchised Food Company, we have just recently been given an ultimatum to accept base occupancy costs in excess of 50% (when our sector should be a maximum of 18% – 20%). We walked away, resulting in yet another retail outlet closing, and some poor sucker being set up for damnation. Simply put it set the retailer up for failure … and they know it!
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