John Lewis and Brent Cross owner in court clash over click-and-collect

Brent Cross owner Hammerson, and former owner Standard Life Investments, maintain that click-and-collect sales should be included in the amount of rent paid by John Lewis, even though the lease terms were agreed before ecommerce existed, the Financial Times reported.

The argument centres on a turnover rent provision in the lease, which dates from 1979, under which John Lewis must pay more, on top of the base rent, if turnover reaches particular levels.

John Lewis is liable to pay 0.75% of the Brent Cross branch’s gross receipts when annual sales there are more than £4m. The proportion rises to 1% if turnover is above £10m.

Hammerson and Standard Life argue that while the contract predates online shopping, it says that “mail, telephone or similar orders received or filled at or from the demised premises or directed thereto” contribute to gross receipts. They also want the £2.95 collection charge, which applies to orders below £40, to be included and are seeking backdated payment.

However, John Lewis maintains that online sales and collection charges do not fall within the calculations of turnover rent because transactions are completed when the product is dispatched from its distribution centre to a store. “By the point in time that the product is collected by the customer…it has previously or already been sold or disposed of,” the retailer maintains.