Could this be a solution for empty shops?
A long time ago, before we started working with Pebble fair trade toys or even before we became soft toy wholesalers, Liz and I were both retail buyers for a variety of multiple stores (you can read about it here )
One of my jobs was managing the Dixon's airport stores, and then I jumped over the fence and worked for BAA who then owned Heathrow, Gatwick etc etc.
BAA did not charge a flat rent but instead they charged a % of the turnover in each store. This dependended on the expected turnover and the margin on the products, but no one paid a flat rate.
This meant that when things were good and there was a lot of footfall through the airports everyone gained. However when things were quiet, everyone suffered together.
The reason I say this is that perhaps its time for a landlord outside of the airports to adopt a similar business model? With all the empty units now available on the high street isn't it time for the old adversorial, pay 3 months in advance, relationship to change?
By paying a % of sales shops will be able to take units knowing that if snow hits and the pavements are not cleared they will be sharing the pain with their landlords. The landlords will know that if they make an effore to encourage more footfall in to the area they will directly benefit from their efforts.
What do you think? Would it work? Please comment on our Facebook page
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