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Casual leasing by shopping centre landlords hurts small businesses

I have been in five shopping centres so far this week and in each one, just metres from a bookshop or a newsagency with a terrific range of books was an outpost offering cheap books.  In two instances when the newsagents affected approached the landlords all manner of excuses were given.  The fact is that the landlords did deals focused only on their revenue goals and not the financial health of their long-standing tenants.

Newsagents are especially vulnerable to damage by casual leasing as our categories of books, calendars and toys are often brought into centres on a casual basis.

I have encountered this a couple of times in recent years and thankfully the landlord responded and moved the casual leasing operation quite some distance from my newsagency.  In one instance the casual leasing booking was cut short.

Casual leasing operators are vultures in my view.  They do not financially or operationally support the long-term health of the shopping centre.  The often act as a barrier to good traffic flow.

I’d encourage newsagents who encounter casual leasing situated close to their business and with products which compete with their business to complain to the landlord.  If there is no joy there, look at alternatives for resolution.

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Book retailing

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  1. Y&G

    How times have changed.
    Nearly twenty years ago, my local shopping centre was offering a craft market once a month in their open space.
    I’d taken a stall, selling my own handmade jewellery, which was doing quite well for itself, until a junk shop owner complained because I was selling some carved stone pieces (which I’d also made into original jewellery), which they claimed was the same as theirs.
    They kicked up such a stink that they became verbally abusive, and conducted themselves like cavemen, in front of customers and stallholders.
    Despite my written complaint after the centre deemed my wares too ‘similar’, because of really aggressive pressure from the tenant, the centre sided with the tenant.
    Needless to say, that store didn’t last long anyway – it turned out they treated their own customers similarly.
    The market didn’t last long, either. It turned out this tenant had complained about every other craft item on offer, because they were competing with his cheap imports.
    So one nasty individual was so threatened by a monthly market of HANDMADE items, that the centre ceded to him.
    What a waste of a community opportunity, but we were certainly glad to see the back of the shopkeeper.

    It’s even sadder now, though, to see the complete opposite going on, with fly-by-nighters cashing in on outrageous deals to either rent shopspace, or outposts, while their loyal (indentured!) tenants have their noses rubbed in it.
    🙁

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  2. Brendan

    The problem with casuals is that they capitalise on peak seasons only and take what should be our cream then dissapear when things are quieter. At least in our centre we are given every opportinity to run our own outposts in preference to casuals and this is a boon for the tenants.

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  3. Max

    Have to agree with the traffic flow comment, Mark. One of the biggest problems in centres, always at the BUSIEST times.
    Dumb!

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  4. Mark

    At least here in Victoria we can take our complaints to the office of the Small Business Commissioner.

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  5. averill

    we had this problem last year and they had to pass the temp book shop to get to me who had also purchased the same books. our complaint was met with the offer of being escorted out of her office by security. after the xmas debarcle i made another appointment explaining what it had done to us, & explaining how the peak season is to help us cover the slower winter, thankfully this summer she has not booked the book guy, it took a bit but she listined

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  6. Max

    averill.
    The problem might not come back this next season, but not addressing the problem when it was happening, is not good enough.
    Surely the management owes you an apology, at the very least.

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  7. averill

    THANKS FOR THE THOUGHT. IF YOU QUESTION HER THINKING/ACTIONS ITS TAKEN PERSONALLY. SO ANY GAIN IS GREAT.

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