Bricks and mortar retailers 'struggle'
Published: June 1, 2011The power imbalance between landlords and bricks and mortar retailers means the retailers are struggling to survive.
So Australian Retailers Association executive director Russell Zimmerman reports in its submission to the Productivity Commission inquiry into the economic structure and performance of the Australian retail industry.
Reported in the Inside Retailing newsletter, Russell Zimmerman, says retail tenancy agreements and the oligopolistic nature of major shopping centre ownership which mostly bias landlords were driving many retail business operators into the ground.
“While retail trade is flat, rents for bricks and mortar stores continue to increase driving up prices for consumers and ensuring a sustained retail exodus from the market.
“The oligopolistic nature of shopping centres ownership and a retail tenancy regime which is skewed in favour of these large-scale landlords presents an inherent disadvantage to Australian domestic bricks and mortar retailers in terms of equitable competition,” Zimmerman says.
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