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RETAIL: Retailer Slams Boris Rescue Package
Listed under: News
Published: Friday, August 01, 2008
Retailers have criticised recent proposals by the Mayor of London, Boris Johnson, to introduce legally binding measures to support smaller businesses.
Under the scheme, developers would be obliged to provide a previously agreed number of small shop units when launching major retail schemes and have to ensure they were affordable for shop owners. However, retailers are sceptical of the proposed measures and claim landlords will never allow it to come into force. “While it might sound like a great idea,” says Graham Adams, owner of Black Rubber Stamps in London, “It won't work because the landlords won't allow it. At the end of the day, it is going to be very hard to convince them not to rent the premises for the maximum amount of money they can get. What's more, I can't see the chains being very happy about forking out a fortune for their premises, when small retailers are paying much less. It's a nice idea but I'd be very surprised if landlords agreed to it.”
Retailers are not the only ones to cast doubt over the scheme; the British Property Federation (BPF) has welcomed the Mayor's commitment to smaller businesses but has expressed concern about its overall outcome. “While we support the intention of helping small shops, we need to be totally clear about determining what an ‘independent’ or ‘small’ retailer is,” says Andrew Teacher, spokesman for the BPF. “Many large chains operate with franchisees, so while the company may be a multi-national, the business itself may be technically independent.” Graham agrees, but adds “It is easy to see the difference between a small business and larger chain, landlords just don't want to do that. I think it's great that the mayor is interested in helping smaller businesses but given the current climate and the people who will need to agree to it, I'm afraid the big boys just aren't going to let it happen.”
Retailers are not the only ones to cast doubt over the scheme; the British Property Federation (BPF) has welcomed the Mayor's commitment to smaller businesses but has expressed concern about its overall outcome. “While we support the intention of helping small shops, we need to be totally clear about determining what an ‘independent’ or ‘small’ retailer is,” says Andrew Teacher, spokesman for the BPF. “Many large chains operate with franchisees, so while the company may be a multi-national, the business itself may be technically independent.” Graham agrees, but adds “It is easy to see the difference between a small business and larger chain, landlords just don't want to do that. I think it's great that the mayor is interested in helping smaller businesses but given the current climate and the people who will need to agree to it, I'm afraid the big boys just aren't going to let it happen.”
Why criticize something without giving it a chance, -maybe it won`t work but it`s a stab in the right direction.
To say it won`t work because the landlords wont allow it is buckleing at the 1st hurdle.If its legally binding they`ll have to allow it.
If small businesses dont support this, how is anyone going to convince the developers to make the right move.
I run a small business in the country, and am just trying to secure a new lease, I would welcome that idea on any new developments.
Small businesses need to acknowledge help in hard times and grab it with both hands!