Association group demands: Rents must be adjusted in the long term
The Cologne-based GMS group offers its dealers the opportunity to negotiate directly with their landlords about adjusting rental costs. GMS said that “many specialist retailers” have now succeeded, either through their own efforts or with the help of GMS, in getting their landlords to suspend their rent due to the loss of sales associated with the shutdown. The rent was often permanently waived for a period of two to three months or at least a significant reduction was agreed.
“The sustainable continuation of the business is not just about a few months, but about the next few years. The market must continue to expect weak footfall and reduced sales. During this time, not only personnel costs have to be adjusted, but also the rent,” says the group. After granting power of attorney, GMS will negotiate directly with landlords about sales-based rent during the crisis, the group offers its dealers.
“If a dealer achieves 20 percent less sales, he should also pay 20 percent less rent,” says managing director Thomas Schulte-Huermann. “The market value of a property with a shop depends on the frequency. And if this decreases, the rent must also be adjusted,” adds co-managing director Dr. Karsten Niehus.
Now that shops have reopened in all countries, a heterogeneous picture emerges among GMS dealers. While some sales are satisfactory, many GMS dealers recorded sales losses of 30 to 40 percent. The mask requirement and the poor consumer climate led to a corresponding reluctance on the part of customers. It is noticeable that there are no clear trends for a decline in sales. Specialists are generally less affected than generalists, peripheral locations and rural businesses are less affected than frequency-dependent inner city locations.
