Sunday 10 June 2012

November Rent Review

We recently posted news of retail rents being reduced in Australian Shopping Malls and we think it is time to examine the rent situation in the top end of the Queen Victoria Market.
Traders were surprised when QVM Management increased rents by around 3.8% last November, not so much because of the level of increase, but because trading conditions did not support any increase. Declining (real*) customer numbers and declining sales added to a long list of adverse economic conditions as traders struggled to achieve even minimal sales targets.
Let’s not beat around the bush on this issue.....cont'd

– we believe a rent reduction is the only correct course to take with rents for General Merchandise Traders this coming November. The pain and hardship experienced by traders needs to be shared by those responsible for our trading environment – The Queen Victoria Market. The QVM records $6m annual surpluses for the Melbourne City Council but the “cash cow” that is General Merchandise Traders has been over-milked and it is time for a measure of balance and a significant rent reduction.
We understand that other areas of the market are also suffering; although we suspect that some are not suffering as much as General Merchandise. We feel for those traders on leases or licences who are “locked” into automatic rent increases. However, these are issues that management will need to contend with in order to make the right decision and reduce rents.
The Lord Mayor champions his council's decision to not increase rates for city ratepayers. Let's see him take the extra step with major stakeholders at the QVM.
We welcome your views.

03/06/2012 17:36:06        " i have been thinking .
you go to a supermarket for shopping, you will notice both the major ones have spent time ,effort, and money on their fresh  fruit produce .
Have you noticed coles, having even the veggies on ice to look more appealing.
the point im coming to is this ,  how can the queen vic veg traders compete?
their overheads, rent,petrol etc , are increasing, cost of living, and yet they need to sell at a less price to be able to attract the people.
i cannot see this been sustained as the small profits,get smaller and smaller..
unless their costs decrease especially rent, they cannot survive.
without the fruit side, the general traders will not survive, and the market will not survive."  

 04/06/2012 15:10:53 "Perhaps they could consider a loyalty system with percentage discounts for Rents based on Days Traded or Attendance or something along those  lines most traders are suffering and some are in dire straits and things will not improve for awhile it gets harder every week the market needs to keep long term traders to survive.  We are still working under some of  the  conditions of 100 years ago with  little protection from the elements wind and cold weather and also  parking is an issue for a lot of traders as well as our customers and  surely there must be a good percentage of traders paying rates to the city of melbourne entitled to vote at council  elections  All traders should be entitled to have their say regarding council issues
Alby and Jillian Renwood         "

04/06/2012 21:18:27 I think its outright disgusting that hey have increased the rent considering their profits and "non profits" from the traders. $6m is a lot to sit on when most people around them are barely breaking even!