Lease changes to give NSW retailers access to better data
The change comes as a result of a partnership between the Australian Retailers Association, the Pharmacy Guild of Australia and several other industry bodies that have developed the Retail Industry Code of Practice – The Reporting of Sales and Occupancy Costs.
“This landmark achievement for retailers in NSW will provide vital information to tenants in shopping centres, allowing them to better-understand the real value of their leases,” ARA executive director Russell Zimmerman said.
“The implementation of this code will help to give some power back to retail tenants and give them some added certainty when it comes to negotiating with their landlords.”
While the collection of sales data has been the norm for some time, the way it is collated and reported has created long-running issues of contention for retailers.
Ensuring that all relevant parties have access to this data means that landlords, retailers and third parties can make tenancy, marketing and stock-ordering decisions with a more complete understanding of what is selling and what isn’t in a particular store.
The Shopping Centre Council of Australia (SCCA) has agreed to the code, which will be implemented in the new year. A six-month transitional period to July 1, 2019, will allow shopping centres to sign up for and implement the changes.
“We will be working to implement this code nationally over the medium-term, and with rising costs, increasing competition and patchy sales growth creating some headwinds for retailers, big wins like this can make a substantial difference,” Zimmerman said.
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