Shaken by shopping malls as retailers, restaurants refuse to open
While some large mall owners, such as DLF, Nexus, Phoenix, and Select City, have offered to forego 50% of the rent during the closing period, most of these particular retailers, which operate more than 100 brands between them, including Levi’s, Bata, Tommy Hilfiger, Calvin Klein and Madura Garments: have demanded a full exemption.
They also want further income restructuring through revenue sharing and the reduction of the minimum guarantee for six to nine months. “We will continue to withhold and will not accept the 50% rent exemption during closing, which is offered by the large groups of shopping centers,” the retailers said in an internal communication between them. “We argued that we should all be patient and wait for a week or two weeks if the momentum comes to an end, as the waiver gains are much higher than the revenue right now. Shopping centers have dropped from 0 to 50 % and many can go up to 75% to attract some of us. ”
However, sources said the reality of the terrain was different, as most of these shopping malls, from Nexus to Select, saw 40-60% of stores open on the first day. Some of the brands that opened their doors, including Benetton, Reliance Brands, Zara, H&M and Starbucks. At the Forum Mall, which retailers said had offered an advance rental exemption, all brands were opened.
“We are reaching out to retailers individually to discuss and we are confident that as we gradually open, everyone will agree to open their stores,” said Pushpa Bector, CEO of DLF Malls. “We need to collaborate right now and they (the retailers) are our partners.”
Over the next one to two weeks, these discussions are likely to develop the specific contours of agreements between mall owners and retailers. Retailers are expected to meet again on June 11 to discuss options on the table. Meanwhile, in the capital’s iconic shopping destination, Khan Market, a popular bookstore and café, Full Circle and Cafe Turtle, closed the blinds after talks with the market association failed.
“Guidelines that allow restaurants to remain open only until 9 p.m. they are not valid. Therefore, it will not move the needle for these outlets to open restaurants in large shopping malls immediately, “said one of the best restaurateurs in Mumbai. Independent independent owners have shown a better reaction to these negotiations.”
Amitabh Taneja, president of the Association of Malls of India (SCAI), said around 250 malls, of 650 large (more than 100,000 square feet) were open on Monday. “We expect more shopping malls to open in the coming weeks as retailers and mall owners resolve their differences over trade deals,” he said.
On video: Video report: Hyderabad shopping malls open, witness low footfall on first day of reopening