An empty shop looks bad for the locality and reduces footfall into the area, which in turn devalues the property. Most landlords have mortgages, upkeep costs and other liabilities and in this climate they will be looking to new businesses to kick start the local economy and reduce their running costs. So, is now a good time to drive a hard bargain with the owner?

Well! it might be, some properties can be very flexible and you can get yourself a good deal and it is often a good measure of your potential relationship if you find yourself negotiating with the landlord and developing mutual respect and consideration. It is much easier on both parties to strike a deal when there is an element of discussion on business arrangements.

If you have never run a shop before you might be daunted at the prospect of taking on such a substantial commitment but, a wise and experienced landlord can actually help you considerably by talking over your ideas and discussing different structures to the lease, or rental agreement. They will generally have a good knowledge of local needs and competition and can provide you with much needed local intelligence if you treat them right. Whilst most keep an arms length from the businesses that lease or rent their premises this is a time when relationships matter.

With so many empty premises it can be a daunting task, but once one business takes the plunge it gives others confidence to follow suit so, when talking to the landlord in such circumstances talk about a reduced rental period or a welcome holiday to give you time to establish the business, and also protect the back door in case things don't work out and insist on a lease break after 12 months where you can extricate yourself without penaltiies.



 


CashFlow is KING

The old adage about there are only three important factors in choosing a retail outlet, being Location, Location and Location is substantially true but its also about attracting footfall and selling the right product - exploiting a specific niche or point of difference. If you get it right, you can very quickly generate a good cash flow

We need to stay on the subject of cashflow because in Retail it is the golden rule so put this above your door and remember it at all times "CashFlow is KING" given the ease with which the customer can stop, or reduce their spending and with the current pressures on inflation and house prices, retailers are more vulnerable than other sectors, the pain will be felt very quickly.

 

 

 
News in Brief

One of the dominant trends that we’ve seen in online activity over Christmas is that popular interest in shopping is higher on Christmas Day than during many of the traditional shopping days preceding it.



With more and more traditions being set aside and the increase in cheap netbooks and easy internet access this trend seems likely to continue well into the next decade. How this will effect retail shops in the high street is unknown but there might be a revival coming with a reverse trend that is beginning to appear in the UK



Pop-up shops are springing up all over as previously exclusive on-line brands bid to liven up the high street and fill empty stores in the run-up to Christmas.



Ebay is opening a pop-up store in New York. Nick Gray, managing director at creative retail marketing agency Live & Breathe, says this not only “gives eBay a physical presence” for the first time, but is a “great opportunity to draw attention to a brand that does not normally appear on the high street”.



Other brands are capitalising on the effects of the recession on the retail market to test the waters for future expansion. HMV is taking empty space in ten locations across the UK. Those stores deemed successful may remain open, according to HMV property director Mark Bowles. He believes the pop-up shops “could well become a feature of our trading in future” especially in the run-up to Christmas where about 40% of the annual consumer demand is generated. Book publisher Phaidon is also taking advantage of vacant property by opening two stores in London for the festive period.

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