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201p

£250K to rent a unit in a shopping centre

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When the rents and rates are higher than the staff costs, it's cheaper to close your doors.

Two major retailers could quit Westquay

TWO major high street retailers could quit Southampton’s biggest shopping centre.

Vintage fashion retailer Cath Kidston and card shop chain Clintons have both launched “reviews” into their units in Westquay.

....

The card company admitted it was carrying out a review of the unit – which is currently listed for rent at £250,000 per year.

http://www.dailyecho.co.uk/news/16226321.Two_major_retailers_could_quit_Westquay/

 

You'd have to sell a lot of greeting cards.

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Posted (edited)

Local farm has a small free kids play area which is supported by its associated cafe and out-door seating area.

The fascist money grabbing council declared it as an outdoor eating area and upped the business rates to the point where it was having to pay more than the nearby National Trust stately home.

The amount of money leached by the council has made this rather seasonal business now unviable with the outside seating so it has gone, along with half the customers.

The farm is effectively in the middle of nowhere so how premium business rates are demanded is beyond reason.

Edited by Chewing Grass

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This retail death spiral is great isn't it; could we be witnessing the end days of the "shopping as a leisure activity" nonsense that started in the 90s :)

Soon these huge malls can be bulldozed and replaced with parks and the councils can sit there brassic and reflect upon their part in closing down all the shops.

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16 minutes ago, Frank Hovis said:

This retail death spiral is great isn't it; could we be witnessing the end days of the "shopping as a leisure activity" nonsense that started in the 90s :)

Soon these huge malls can be bulldozed and replaced with parks and the councils can sit there brassic and reflect upon their part in closing down all the shops.

I’m not convinced frank.  Every time I go to either the shopping centre (use lakeside) of the local curry’s on the north circular, they are rammed. It might be different in other parts of the country. 

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23 minutes ago, One percent said:

I’m not convinced frank.  Every time I go to either the shopping centre (use lakeside) of the local curry’s on the north circular, they are rammed. It might be different in other parts of the country. 

It's more that I see stories of shops closing along with retail sales falls as good news.

I find it laughable that so many people's response to pollution problems is to buy things.  Whether it's a fleece made out of recycled plastic bottles, using far more resources in so doing than it takes to make a normal one, or junking their perfectly working car for an EV with all the horrendous damage its construction does to the world.

Every shop closing and every unnecessary product not bought is a win.

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4 minutes ago, Frank Hovis said:

It's more that I see stories of shops closing along with retail sales falls as good news.

I find it laughable that so many people's response to pollution problems is to buy things.  Whether it's a fleece made out of recycled plastic bottles, using far more resources in so doing than it takes to make a normal one, or junking their perfectly working car for an EV with all the horrendous damage its construction does to the world.

Every shop closing and every unnecessary product not bought is a win.

Agree, consumerism has gone mad. High streets are dying but I’m not sure that the out of town sheds are just yet. Massive influx of people is keeping it propped up at the moment. Whenever I venture into shops, the voices and languages are all foreign. My guess is Eastern Europeans. 

Thats why we will never leave the eu. It really will all crash and burn if they stopped free movement, it’s a complete Ponzi scheme 

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33 minutes ago, One percent said:

I’m not convinced frank.  Every time I go to either the shopping centre (use lakeside) of the local curry’s on the north circular, they are rammed. It might be different in other parts of the country. 

A major recession would end the malls, but there are millions of people who would have no clue what to do with themselves without disposable income to spend on shite. Unless prevented from doing so by the IMF, I reckon the current crop of spineless PPE politicians would prefer to print money to give to them rather than tell the truth. 

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1 minute ago, swiss_democracy_for_all said:

A major recession would end the malls, but there are millions of people who would have no clue what to do with themselves without disposable income to spend on shite. Unless prevented from doing so by the IMF, I reckon the current crop of spineless PPE politicians would prefer to steal it from savers and taxpayers print money to give to them rather than tell the truth. 

Fixed it for you 👍

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2 minutes ago, Frank Hovis said:

Nooooo!

Everyone else buy less!

Shopping will save the planet. Get rid of your old stuff, and buy new green eco-stuff!O.o

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Two things that people underestimate, always, when it comes to running a business: Staff costs and rent costs.

10+ years ago when i worked in retail in a large shopping centre, the unit was the smallest size possible, yet the rent then was £30k a month. I dread to think what it would be now.

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Our local town, Alton in Hampshire, had a fair few retail and office premises to let when we moved here a decade ago.

Fast-forward to now and with only one or two exceptions I can think of, every single one of those premises is still to let. Or put another way, it remains out of use. Nobody has taken them on. Very few new things have opened.

Except they have been joined by many more premises. The high street is progressively dying. A florist who had won awards at the Chelsea flower show closed down citing the cost of rent and rates. A small greengrocers did the same. Someone tried to open a deli in the high street and that lasted about three months.

While all of this has been going on, a number of retirement homes have been built very close to the town centre. Convenient for the elderly to be able to walk there and get their provisions. To meet each other. To have lunch and so on.

And while those have been opening, the very same facilities in close proximity have been closing. If it carries on like this, actually, those retirement properties will be among the furthest away from the likes of Aldi, Pets at Home and so on which are on the edge of town in an industrial park.

And then you get a demand for more council tax this year versus the last. While all around, buildings stand empty.

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4 hours ago, Frank Hovis said:

This retail death spiral is great isn't it; could we be witnessing the end days of the "shopping as a leisure activity" nonsense that started in the 90s :)

Soon these huge malls can be bulldozed and replaced with parks and the councils can sit there brassic and reflect upon their part in closing down all the shops.

 

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A shop in the university area here closed recently after 15-ish years in business, posting up a sign just before it closed telling everyone that it was being forced to close because of increased rent demands.

It is now being renovated and is going to be a Greggs - which I'd guess will do the average weight of the student population no good ;) But I wonder do these high rents mean that basically nobody can compete except the big chains?

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Woking council have been buying all the retail property they can lay their hands on, and building extra at an incredible rate (with commensurate debt on the balance sheet). Meanwhile a large proportion of the existing capacity is occupied by charity shops, including some very large, premium location sites.

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Yes. But it's a downward spiral. As town centres become full of boarded-up shops, the reasons to go there become fewer and fewer.

So the logic which says that one of the reasons to pay a substantial rent is because the area itself brings with it a ready-made market for you to exploit is less and less true.

The expression "burning the candle at both ends" comes to mind.

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I never really understood how independents survive for so long. The local greengrocer closed up recently, the turnover was around £51k a year. Once you take out rent and staff costs etc it just becomes impossible now.

Nobody so far has mentioned staff wages are rising due to government interference (increasing minimum wage, pensions etc), this is also driving many smaller shops out of business.

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Posted (edited)
9 hours ago, spunko2010 said:

I never really understood how independents survive for so long. The local greengrocer closed up recently, the turnover was around £51k a year. Once you take out rent and staff costs etc it just becomes impossible now.

Nobody so far has mentioned staff wages are rising due to government interference (increasing minimum wage, pensions etc), this is also driving many smaller shops out of business.

Rightly or wrongly I always assumed that the majority of  small independents were in owned outright and passed down unencumbered with debt down the family line. No rent and family making up a proportion of the staff on flexible wages then during lean times easier to eek out an existence. 

Edited by onlyme

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19 minutes ago, Long time lurking said:

WTF  greetings cards ...is there a working tax credits scheme for businesses 

Cost 3p. Sell for £3.

Name me something with a better mark up.

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Posted (edited)
20 minutes ago, Cunning Plan said:

Cost 3p. Sell for £3.

Name me something with a better mark up.

I had a burger van in the late 90`s similar mark up at the right event 

But still that`s  4k + cards a week to cover the rent :S

Edited by Long time lurking

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In my local high street I got chatting and got to know in passing the owners of two shops that closed in the last year. One was a relatively recent trendy men’s fashion shop, the other the sort of old fashioned toy-cum-bike shop that sadly used to be on every high street but is now as rare as hens teeth. Both were absolutely clear that outrageous rents/rates were the reason for them shutting. It’s not that they couldn’t compete because of the web, it’s that they simply couldn’t run a viable business with the cut the landlords and council want off the top of their (non existent after that fleecing) profit.

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Listening to the news whilst getting ready this morning, there was a piece about M+S latest results , in a shocker down again (well there's a surprise), but one of reasons stated for store closing too was the vast increase in business rates ... no shocker there either

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