Fashion Retailers Negotiate with Property Owners for Lower Rents

  • H&M is negotiating with landlords for rent reductions
  • The retailer wants total occupational deals linked to sales revenue
  • Returns from online purchases could be deducted from store revenues
  • Some landlords have rejected the offers
  • Similar demands made by Next, Primark and WHSmith
  • H&M has added several fashion brands in the last decade

H&M, the world’s second-largest fashion retailer, is negotiating rent reductions with landlords amidst an increase in returned clothes. The company has proposed ‘total occupational deals’, linking rent to sales revenue and deducting returns from store revenues, including online purchases. Some landlords have rejected these offers. This comes after H&M reported a 11% increase in Q2 results, marking the fifth straight quarter of consistent sales growth.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about H&M’s negotiations with landlords over rent reductions and its impact on property owners. It also mentions the company’s recent sales growth. However, it lacks some details about the specifics of the deals and could provide more context on the broader retail industry situation.
Noise Level: 3
Noise Justification: The article provides relevant information about H&M’s negotiations with landlords over rent reductions and its impact on property owners, but it lacks in-depth analysis or exploration of the broader implications of this trend in the retail industry. It also does not offer actionable insights or new knowledge for readers.
Financial Relevance: Yes
Financial Markets Impacted: H&M, landlords and other retailers mentioned in the article (Next, Primark, WHSmith)
Financial Rating Justification: The article discusses H&M’s negotiations with landlords over rent reductions and its impact on financial agreements between the company and property owners. This has implications for the retail industry and potentially affects the financial performance of these companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text, but the article discusses H&M’s negotiations with landlords over rent reductions and their impact on property owners.

Reported publicly: www.retailsector.co.uk