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As the UK Titanic lurches with a hole in its keel from the iceberg of the credit crunch we just hope that the welder Gordon Brown has securely fixed his repair patch!
As we sit at the moment I can’t say I’m that confident and with the speed we are seeing retailers disappear from our high streets I am not sure many business leaders truly think our revered leaders have got it right.
Now the time has come to form a true partnership between retailers and Centre owners and work together to ride out the storm. The messages being projected are confusing but for the shopping public they are set to see deep discount for a time yet. Of course the retailers are buying turnover and cash flow with their discounts but they will struggle with profitability.
Foreseeing the need to protect cash the retailing moguls led by Sir Philip Green took the initiative and sought monthly rental payments. Now this is an interesting step. When the good times come back, will they remember the help and assistance of the owners? Will they run crying to the Government for help to protect them from the horrendous upward reviews?
What needs to be remembered in good times and bad is that a shopping centre is a business and relies on the owners and retailers working together. It works on supply and demand and the lease is a negotiated contract. If everyone can be grown up about it, let us all lobby for the abolition of the 1954 Act and have open season on lease terms.
Although in reality perhaps we are looking at the reality of individualism and protectionism in hard circumstances. Personally I hope we are not and that the nonsense of the attempted protection legislation has gone and won’t come back.
Well one can still dream!
06 Jan 2009 10:32:50