Future Group negotiates rents for its 1,700 shops – ET Retail

Future Group negotiates rents for its 1,700 storesMUMBAI: Kishore Biyani-promoted Future Group is negotiating hire for all of its 1,700 shops to chop prices amid the coronavirus outbreak because it appears to be like to avoid wasting on the annual rental outgo of practically Rs 1,500 crore.

The retailer is speaking to particular person landlords and has carved out a number of negotiation methods. Its Huge Bazaar retailers are providing a income share mannequin to landlords. For the landlords not agreeable to the income share method, Future group is looking for both a hire deferral or a lowered fee choice and shops which might be fully shut, the retailer has sought a complete fee vacation.

“The thought is to considerably minimize down hire prices, so the negotiations are ongoing with each landlord to make them perceive the extraneous scenario we’re in,” mentioned an official.

Future Group didn’t reply to ET’s request looking for remark.

As per the retailer’s annual report on the finish of March 2019, it had rental bills of Rs 1,487 crore in opposition to Rs 1,405 crore on the finish of March 2018. These 1,700 shops function by manufacturers like Huge Bazaar, Meals Bazaar, FBB, House City, Central and eZone amongst others. The retail firm has 293 BigBazaar shops, 95 FBB retailers and 1,147 small shops.

Retailers Affiliation of India (RAI), which represents a number of the prime retailers within the nation, has made representations to the federal government to permit a blanket invocation of the drive majeure clause to tide over this disaster. The shutdown of retailers as a result of pandemic, excessive stock and low demand state of affairs has raised survival points for a number of retailers.

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