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Westfield stores fight fee increase
03 December 2008
Nine of the biggest retailers, including "anchor" tenants Marks & Spencer, House of Fraser and Debenhams, have joined forced to battle a second increase in fees. The group has appointed a specialist adviser Profile Consultancy, to represent them in talks with the Shepherd's Bush mall's developer.
Stores at the £1.6billion complex have been told this week their charges are rising from £14 per sq ft to £19 per sq ft. Retailers claim the charges were set at £8 per sq ft ahead of the centre's opening on 31 October, according to Estates Gazette magazine.
David Howell, managing director of Profile Consultancy, said: "There is alarm among retailers. The consortium wants to understand why costs at Westfield are so high, and try to reduce them." One retailer, which did not want to be named, said: "I am very cross about this second increase. It is not a good way to start a relationship."
The high costs at Westfield are said to be deterring retailers from signing up for stores at the developer's 1.5milion sq ft shopping centre in Stratford, and demanding charge caps are written into their leases.
Westfield said: "The £18-£19 per sq ft figure refers only to November and December. It reflects the seasonal spike in operating costs that occur in the run-up to Christmas."
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