British Retail Consortium - Policies & Issues

PROPERTY

For the retail sector property plays a key role in many respects. The occupation of physical property is crucial for retailers because whatever e-commerce may bring, it is unlikely to fundamentally change the need for most retailers to have a physical presence on the high street. Retailers are heavily dependent on property and because of this the industry is highly exposed to the inflexibility and high costs associated with occupying commercial property in the UK.

Property costs are the second biggest cost for retailers after wages and are currently rising much faster than sales growth. High rents as a result of upward only rent reviews and other inflexible leasing practices are making it increasingly difficult for multiple retailers to continue trading on the high street. For small independent retailers who are rarely in a strong position when negotiating with a property owner over the terms of a new lease, the cost of securing a foothold on the high street is often prohibitive.

Policies that make property investment and development less viable, or the occupation of property more inflexible and expensive for retailers will also have widespread economic and social implications.

The BRC works with members across a wide range of high profile policy initiatives. This work is supported by members of the Property Policy Advisory Group which exits to formulate and review BRC policy, at national level, on property, planning and regeneration issues affecting the retail sector and to represent the views of the retail sector to Government, its executive agencies: and civil servants and parliamentarians.

PROPERTY MANAGEMENT CHECKLIST
Property costs are a high priority for all retailers and need effective management to ensure value for money is being achieved. The BRC Property Policy Action Group has developed a checklist for retailers of all shapes and sizes, providing practical advice that will enable them to take control of their property costs.

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