Retailers have been advised to boycott premises leases that demand rent be paid in advance quarterly instalments.
The British Retail Consortium (BRC) said that monthly leases are now becoming the norm, though in the past, landlords have demanded rent be paid in advance on quarterly dates.
The dates have historical roots in the church calendar, and Lady Day, 25 March, is seen amongst retailers as the toughest, the BRC said.
"Coming immediately after Christmas, January, February and March are the leanest months of the year," it said. "The three month lump sums due this month are particularly difficult."
A year ago, the BRC began a campaign for fairer retail rents, claiming that quarterly payment is an "antiquated practice which cannot be justified in the modern business world” and adds £145m to the costs faced by retailers every year.
"The first three months of the year is a period when customers traditionally have less to spend, sales are usually driven by discounting and some retailers do not make an operating profit," said BRC head of property Paul Browne.
"This year interest rate rises and mounting household bills are undermining consumer confidence further. For many retailers the last thing they need this month is a massive up-front rent bill.
"There has been a real mood change among many commercial landlords. They know that ultimately this long overdue reform will come," he added.
"Now is the time for retailers to be forceful and call time on this ancient and costly practice."
Date:27 March 2007
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