As revealed by Retail Week in October, those retailers with three shops or fewer and and are paying an annual rent of£50,000 or less can pay rent on a monthly basis providing it is paid by direct debit.
The agreement was reached on November 28 by a group of property heads and retailers, including Arcadia boss Sir Philip Green, New Look chairman Phil Wrigley and Land Securities chief executive Francis Salway.
British Retail Consortium property policy adviser Ed Cooke said: “There is an acceptance that this is the way the market is going and this is to be supported because it will help small retailers ease their cash flow pressures.”
But he said recent events prove larger retailers also need help. “Support from landlords is essential if they are to ride out this downturn."
The discussions also resulted in a joint initiative to manage service charge costs. A pilot has begun which has a target of reducing service charged by 20 per cent, with landlords sharing costs.
Those taking part in the pilot are Land Securities at White Rose in Leeds, Prupim and Capital Shopping Centres at Cribbs Causeway in Bristol, British Land at Meadowhall in Sheffield, and Westfield at Merry Hill in the West Midlands.
The group will continue to lobby the Government to reverse the rates on empty property. Measures in insurance, rent reviews and the structure of leases is still being reviewed.
2 Readers' comments