The Dark Side of Retail Railroads Leasee.

Wayne Offer

Small business is always highlighted around elections and all parties pride themselves on looking after the Small Businessman the biggest employer in the country.
In retail and especially on shopping centres the average person is driven by going to the Anchor Retailers like Coles and Woolworths and then supporting the other retailers on a needs basis. 
Unfortunately there is a Dark Side of retail that is being played out in our neighbouring suburb of Winston Glades. 
A tenant Mrs K, a mum and dad business that has developed into a very popular part of their community at the local shopping centre has been given its marching orders on lease termination allegedly without notice. 
The business occupies good customer exposure and has a very sound customer base developed over the years. 
Customer uproar has broken out and has made headlines across the local newspaper.
But in real life in the eyes of the owners and managers of the centre that wave of anger will pass and the customer base of the new retailer will develops it own base and all will be forgotten in months. 
From personal experience Owners and Managers of all major and Minor Shopping Centres across the nation prefer to lease to the Multi National food and Coffee outlets. The centres get dragged along with their advertising and promotions like the Anchors therefore increasing customer traffic with less input required from Centre Managment budgets.
More traffic = More rent to the average Mum and Dad business, but not to the multi national who gets it cheaper because of his bargaining power.
Fair no, Fact yes.
In the Winston Glades case, to be fair IF the tenant has not honoured the lease in any way the Centre Management by law has the right to evict or not to renew. 
"No comment"from the Centre Owner or their representative 
Also part of normal lease conditions is the monthly reports of takings so the centre can be judged in traffic and turnover.
These numbers can and are equated across all tenants in their holdings, then Centre Managment can make calculations of "broad profit margins" in each retail sector.
Knowledge of these numbers is critical to the Managers when dealing with perspective clients, and comparing clients, and are allegedly confidential.
 Experience can see two outcomes here unfortunately.
Scenario one Mrs K will win the battle but the rent will increase to a point where the business become unprofitable and loose the War.
Scenario 2 when vacated Magically a new major Multinational Coffee or Food outlet will be coming soon. 
The word loyalty extends to your customer and if your fortunate it is returned.
Leaseholders loyalty stops when the lease is about to run out and they want your space. 
That's Ruthless Retail..