Wednesday 22 July 2020

Relief in Retail

At the beginning of the Covid crisis you may remember I wrote a few times on the need to switch away from upwards-only rents to a more nuanced approach for retail based on turnover. Fair to say I did not get universal support for this and a few people pointed out that some shopping centres had tried this already.

However, I am still pleased to see the Crown Estate is to pursue this strategy in Regent Street (where I work, so will be able to give regular updates as to how it is working out) - see here.

This approach shoudl work for the low income restaurants and shops that are not going to bounce back for a few months yet to anything like pre-Covid normal.

It will be interesting to see if this strategy works, or whether business is just too bad to continue for many of the independent retailers.


Sackerson said...

I've long thought that rates should relate to turnover, which I think would help small shops and businesses get off the ground and maybe reduce the advantage of big, drive-to retail outlets over the struggling local high street.

Matt said...

Who pays the rates - the tenant or the landlord?

If you base it on turnover, then the fact that rates will be lower will likely mean higher rent so the tenant is no better off.

Same with stamp duty on housing or help-to-buy - who pockets the difference? It won't be the buyer - the seller will increase the asking price to take it for themselves.

E-K said...

Beta Interferon seems to be the real deal. Synairgen - a UK company- can knock this out for £29 a shot. It gets 80% of patients well without need for ventilation.

Now, if we can get back to normal as soon as possible pleeeease ???

Charlie said...

They'll have to change, because Central London is over. It relied on the cash brought in each day by millions of well-paid commuters who aren't coming back in anything like their previous numbers.

CityUnslicker said...

Charlie - I am one of these people, I am one of those people. I dont see myself not going back - slowly yes, but back to work likley full time or nearly full time.

andrew said...

I know at least 2 clients who have offices based in zone 1.
They all live out beyond zone 6.
The only thing that stops them shutting the office completely is printing legal docs hat need wet signatures.
They had most other printing solved in May.

It is likely that 20 and 40 person offices will close.
The 1 and 2 senior people will have offices still
The rest will use bookable meeting rooms once a fortnight that already exist.

On any one day I doubt there will be anyone in apart from thursday / friday when there will be 10 or so.

A season ticket can easily cost over 6,000 pa
or you can take a train in for ~30 once a fortnight.

Anonymous said...

The London ‘waiting’ uplift in salary will disappear soon after.

As for wet signatures they stopped being a thing with the iPad Pro pencils about a year ago.
I haven’t heard the legal team fax go for a while.

And yes I sit next to the aviation buying and leasing team that deals with tens, and yes millions of sterling / us$ transactions per day.

Charlie said...

I'm currently at a French investment bank. Staff who don't work on the trading floor are going back for 1-2 days per week in September. The change is permanent. Mate works at a challenger. They've got rid of 2/3 of their floor space. WFH except for 2-3 days a month. Again, a permanent change. Plenty of people won't be going back. And most of them don't even want to.