Source: Economic Times India
Retailers won’t get rent concessions next month onward as most malls plan to revert to the original terms of agreements with tenants as sales have recovered nearly 80% despite lower footfall.Several top retailers, including Aditya Birla Fashion, Shoppers Stop, Reliance Retail and Tata Trent, negotiated lower rentals since the June quarter, when malls largely remained closed across cities due to lockdowns and other restrictions to contain Covid-19.“We supported the industry when it was required,” said Pushpa Bector, executive director at DLF Retail. “Spend per footfall has doubled and in some segments, it has even reached 120% of pre-Covid level. But the agreement to provide relief was until this fiscal end.”Several malls had reworked pacts that allowed for a resumption of previously agreed rentals if the tenant crossed 80% of the previous year’s sales. “We have recouped sales even as footfall remain lower than pre-Covid levels,” said Anuj Arora, general manager at Oberoi Mall in Mumbai. “The terms of trade will now be back to the original agreement, signed before Covid-19.”‘New Normal’“In cases where leases have expired, we have signed new agreements without concessions,” said Arora of Oberoi Mall.