The reality of “unfair” retail tenant treatment – 28 Dec 2013

Posted on December 2nd, 2013 in Food for thought



In most major malls in Singapore these days, we see lots of large standalone flagship stores.  You know which ones they are.

Research by Savills showed that big brands receive deep discounts from mall managers, while small and mid-sized retail tenants are subjected to rents at market rates.  Contrary to what you may think that the bigger brands have simply outbid the smaller retail players to secure a space, they have in fact been invited to stroll into the mall by paying as low as 1/3 the market rate per square foot.

If this unequal treatment for smaller retailers who might be offering a different product is not bad enough, the small retailers have to contend with rising rental rate which Ms Jannie Chan, president of the Singapore Retailers Association (SRA), estimates go up by 5 to 10 per cent every few years.

Little wonder then that the smaller retailers have gone online to avoid the onerous and unfair rental treatment.

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