Coronavirus pandemic has virtually broken the back😣 of the retail and restaurant business segments.
With no end in sight to this crisis, the outlook for revival of such businesses is highly uncertain☹️.
As a consequence, many top retail brands situated at premium locations in the metros🏙️ are now shifting to such areas where the rentals are low.
Meanwhile, others are renegotiating🤨 over this issue with their landlords.
The Details
Lately, topmost commercial areas of the country like Delhi’s Connaught Place and Mumbai’s Linking Road are witnessing the exit🚚 of premium retail brands such as Levi’s, Nike and Sketchers.
This trend is also visible at one of Delhi’s another top commercial location, Khan Market🏢 from where brands such as Smoke House Deli, Cafe Turtle, Full Circle, Smokey’s etc. are making their way out.
Notably, till last year rents in Khan Market ranged from Rs. 7 to 10 lakh a month😳.
But now, they have crashed by as much as 80%📉.
A Changed Scenario
Because of the present economic distress, retailers and high-end restaurateurs have also renegotiated🗣️ their commercial arrangements with their landlords.
Some of them have seen the entire rental waiver for the peak lockdown period🔒.
They will also get heavy discounts🙂 in the decreasing magnitude for the subsequent months.
Significantly, they will also benefit🤑 from the waiving off of the condition of minimum rental guarantee for the coming months.
Meanwhile, some of the other such businesses will now run their operations entirely on a revenue-sharing🤝 basis instead of paying rentals till things get back to normal.