What:  The well-known turnover rent is generalising in the UK as a response to the difficulties of the retailers across the board.

Why it is important: The crucial question raised between the lines is how to take into account the online sales related to click & collect.

Due to the difficulties on the market, and a considerable decrease of traffic (when stores are allowed to stay open), there is a generalisation in the UK of the turnover rent practice, i.e. aligning the rent on the actual performance of the store and getting rid of any fixed part. Retail Gazette reports that 82% of UK retailers are looking to modify their current lease with this new approach. However, as we have already reported, there is a strong incentive for landlords to include online sales performed with a brick & mortar component, such as click & collect.

Is turnover rent the new future for retail

Related item:

• A new rent model under consideration in UK Malls