Struggling businesses ‘in discussions with landlords’ over rent

RETAIL businesses in St Helier and their landlords are engaged in ‘realistic’ discussions about rent as a result of ongoing challenges related to Covid-19, the town centre manager has said.

The news follows recent confirmation from Infrastructure Minister Kevin Lewis that businesses leasing premises from the government could be granted rent holidays, early terminations or have payments waived.

Vicky Trehorel, who is approaching the end of her first year in the role of St Helier’s town centre and events manager, said she was encouraged by the willingness of parties in the private sector to discuss their concerns.

‘Businesses have been entertaining these conversations with landlords – there is concern about “three consecutive winters” and many businesses can’t afford to acquire higher levels of debt,’ she said. ‘And some landlords are also in financial difficulty, but I’ve seen some positive examples where a solution has been reached.

‘My biggest concern is that we will have increased levels of empty shops, but in fact we’ve seen the opposite, with a can-do attitude on both sides.’

Miss Trehorel said the fact that some start-up businesses had recently begun trading from town centre units was a positive sign that landlords were being flexible.

The Spend Local initiative, with £100 pre-paid cards being sent to all Islanders as part of government measures to stimulate the economy, should also be beneficial for St Helier retailers, she added.

‘I appreciate that people have concerns about coming into town, but I hope they will come to St Helier to spend some of their money, see the measures that are in place to keep them safe and be more confident about coming back,’ she said. ‘This will mean retailers can look forward to more vibrant trading later in the year in the build-up to Christmas.’

Earlier this month, Deputy Lewis unveiled the new ‘Government as Landlord’ policy, including more support for businesses in the shape of additional concessions such as waiving rent or offering lease breaks.

Under the new policy, the government has adopted the framework for renegotiating lease terms set out in its guidance for commercial landlords and tenants.

UK retailers have also called on landlords to engage in constructive conversations with tenants.

Jacqueline Gold, founder of the Ann Summers chain – which has 140 stores in the British Isles, including a branch in St Helier – wrote an article in trade publication Retail Week referring to long-term changes resulting from the pandemic and the need for landlords to take a more pragmatic approach on rents.

‘Ultimately no retailer can afford to run stores unprofitably, and with business rates set to return [in the UK] next spring, the challenge of property costs is going to become even more pressing than ever,’ she said.

A spokesman for Ann Summers said that in cases where landlords were not willing to engage in realistic discussions, the company would consider closing some of its high-street outlets and adopt a greater emphasis on online sales.