Retail Ireland Highlights Continuing Legacy Rent Challenge To Retailers
Retail Ireland has pointed to recent high profile examinerships to highlight how the ongoing challenge of high rents and other legacy cost issues are affecting the retail sector.
It comments come as department store Debenhems’ Irish business seeks protection from the courts.
Retail Ireland Director, Thomas Burke explained, "Retail Ireland continues to highlight to Government and others the problem of legacy boom time rents, which are totally out of line with the current market reality.
“The recent entry into examinership by a number of large retail operations shows that many continue to grapple with a cost base that is a hangover of the boom and not sustainable in the long term.”
He went on to say that even though retail sales grew by 4% in Q1 2016, they are still 12% below 2008 levels, while consumer sentiment remains fragile.
“If these legacy costs are not addressed in a pragmatic way by landlords and other interested parties, we will continue to see businesses question their continued viability," he added.
© 2016 - Checkout Magazine by Jenny Whelan.