News from the Deli Hall suggests that traders are being asked to consider major issues that will impact significantly on their businesses.
QVM is critically reviewing the operation of the Deli Hall and how to prepare its offer for the next decade and forward. A number of traders have leases terminating at the same time and they are being asked to review their operations and prepare detailed descriptions of how they will meet the needs of deli customers in the future.
Constant assessment of a small business’s direction and focus is a good thing. It can be argued that traders and management have been complacent about the market’s direction over recent decades and of course the competition from supermarkets and fresh food centres has grown significantly. However, management have added another unwelcome ingredient to this review in the form of proposed rental increases. Hold on to your hat – we believe they are talking increases of up to 80%.
There is much to be thrashed out here. This is one of the first major tests of a new philosophy leading into renewal. We have a great Deli Hall. We need to make sure that our market doesn’t become a sanitised shell of its former self. Rents need to be based on an agreed Public Retail Market model, not a Shopping Centre model. And traders and management need to step slowly and carefully into the minefield that is changing consumer expectations. If they step together we may choose the right path.
19/06/2014 17:48:10 Deli Hall "In relation to the rent increases - upto 80% - do we know how these increases in rent, once they have taken effect, will then compare to market rents in the rest of the market - as in the Meat & Fish, ""F"" shed shops, Victoria Street Shops, Food Court, and the Market Stall rents.
I am just wondering if this will bring them more into line with the other lock up shops within the market, or make them significantly higher?
In regards to be asked to assess their business plans, with their leases coming up for renewal, this is no different to any other standard commercial lease offered these days. Just because you have lease, does not mean that once it ends you are guaranteed to have it renewed, if you want to continue to trade. A new lease does not have to offered to the current tenants if management do not believe they are going to provide the customers with any benefit. Its sad, but thats part of business."