When a landlord competes with a tenant
Shopping centre property giant Westfield is to compete with small business newsagents by opening Ticketek ticketing agencies at customer service desks in its shopping centres, in competition with many small business newsagents offering Ticketek in these sames centres.
Despite being open for longer hours than centre management customer service desks, Westfield prevailed upon Ticketek to permit the opening of these new businesses in competition with incumbent newsagents.
I wonder if Westfield is paying the usual fee for each new sales location which newsagents have to pay?
Landlords hold the permitted use clause in a tenancy lease to control what we can offer in our newsagencies. You either buckle to their interpretation of what you can sell or face a raft of penalties to your business. They say the permitted use clause is there to protect your business as they will fight for you if someone tries to compete with our when their lease does not permit it.
What do you do when the landlord is the competitor, as is to be the case in many of the 37 Westfield shopping centres?
I feel for the newsagents affected. I especially feel for those who are part of a marketing group which is inactive on this issue.
