H&M pressures its landlords: asks for new price drop in its rentals
The Swedish distribution giant, that plans to link the rent to its stores sales, demands that online sales to be excluded from the revenue.
H&M restarts negotiations with its landlords. The Swedish company, that plans to link its rent to store sales, demands to exclude online sales and returns from the revenue in its United Kingdom stores, according to The Times.
H&M plans to pay landlords between 15% and 20% of the in-store sales to cover rent, services and commercial tariffs.
H&M landlords stated that they find the proposition quite aggressive". However, they state that H&M has a strong decision power. The fashion group operates 304 stores across its 4,739-strong global store estate in the United Kindgom.
H&M grew 5.2% in its fiscal year 2018, up to 19.7 billion euros, but its earnings dropped 21.8%, to 1.2 billion euros.
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