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Traders threaten Westfield owners with revolt over charges
Jonathan Prynn, Consumer Affairs Editor4 Nov 2008
THE owners of the new Westfield shopping centre face a revolt from retailers over higher than expected service charges.
Shop chains that have taken space at the £1.6 billion Shepherd's Bush mall have been told they will have to pay £14 per square foot to cover costs such as cleaning and marketing 75 per cent higher than the £8 originally indicated. This makes it one of the highest service charge for any shopping centre in Britain. Some retailers could have to pay an extra £500,000 a year.
Sir Philip Green's Arcadia Group owner of Topshop and Miss Selfridge and the New Look fashion chain are among those preparing to fight the extra costs.
Phil Wrigley, executive chairman of New Look, said he was happy with the new centre but added: "We will be paying what was originally proposed."
The row comes five days after Europe's biggest urban shopping centre was opened by London Mayor Boris Johnson. About 500,000 shoppers passed through between Thursday and Monday.
A spokesman for Westfield said the high status of the shopping centre justified higher charges. He said the £8 figure was mooted before Westfield's involvement in the project.
Reader views (3)
Westfield shopping malls are unbelieveably bland and boring here in Australia. Unfortunately they have taken over the Australian market and now want to do the same around the world.
- Luke M., Sydney, Australia, 06/11/2008 09:11
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We seem rather good at destroying anything positive that can be gleaned from prestige projects - a certain airport terminal not far away comes to mind and then this. I certainly wonder where the next opportunity might lie.
- Matthew, london, 05/11/2008 18:28
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This only took a few days. Now the centre will become the focus for rows for years to come
- Keith Price, Luton, England, 04/11/2008 18:30
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