25 MARCH - TOUGHEST RENTS QUARTER DAY 

March 22, 2007
 
With the year's toughest day for retail rents approaching, the British Retail Consortium (BRC) is advising retailers to boycott new leases that demand rents quarterly in advance. The BRC says monthly payments are rapidly becoming the norm on new leases.

Traditionally commercial landlords demanded rents be paid in advance, four times a year, on the quarter days. The quarter days have historic roots and are linked to the church calendar. Retailers regard Lady Day - 25 March - as the toughest.

Coming immediately after Christmas, January, February and March are the leanest months of the year. The three month lump sums due this month are particularly difficult.

The BRC believes its campaign for a fairer retail rents regime has begun to turn the tide against quarterly payments. The retailers' organisation says they are an antiquated practice which cannot be justified in the modern business world and add £145 million a year to retailers' mounting costs.

British Retail Consortium Head of Property Paul Browne said:

"It's a year since the BRC first called on landlords to switch to accepting rents monthly in advance and monthly payments are increasingly becoming the norm on new leases. Smaller landlords are often most willing to be flexible but it's retailers who are boldest who are making most progress.

"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. This year interest rate rises and mounting household bills are undermining consumer confidence further. For many the last thing they need this month is a massive up-front rents bill.

"There has been a real mood change among many commercial landlords. They know that ultimately this long overdue reform will come.

"Now is the time for retailers to be forceful and call time on this ancient and costly practice."