Retail: Small Steps In The Right Direction

This optimism has translated into Memery Crystal being instructed on a number of new leases to a wide variety of retail tenants, ranging from large household names, food and beverage chains and small independents. The indication here is that retail operators are now dipping their toes back into an industry that has, in essence, been paused for the past 3 months.

Whilst the landscape of retail will no doubt at first be different to what we were used to experiencing pre-lockdown we must remember that the emergence and subsequent rapid growth of the online marketplace over the last 15 years has long-been a factor contributing toward the revolution of the retail industry. This period of lockdown will no doubt have encouraged retailers to sharpen their thought as to how to make the most efficient use of their space and products.

That being said, the fact that non-essential businesses will soon be allowed to open their doors to the public will no doubt come as a relief to the retail sector. There is widespread public sentiment to both acknowledge and more importantly support those in retail, who have been prepared to serve society at personal risk, during a difficult time.

Looking ahead, as many landlords have implemented their own unique version of the furlough scheme by agreeing rent deferrals and suspensions with their tenants for the March quarter, constructive discussions now need to be made between landlords and tenants before the June quarter date to secure a sustainable future of the retail industry. It must be remembered too that, whilst 15 June 2020 is the date that retailers will be permitted to re-open, there will be a number that simply cannot.

Whilst COVID-19 may have created huge challenges to the retail sector, there are also opportunities to re-calibrate business models and refresh property strategies to come back stronger and more focused on what the public have craved during the elongated period of isolation.

Please feel free to contact the author should you wish to discuss any of the issues raised in this article, or if you are a retail operator and would like to discuss the potential strategic legal options available to you.