Mike Ashley, owner of the British sportswear company is asking landlords to agree to link rents to sales across his entire estate. Up to 15% of fees would be linked to in-store sales.
Sports Direct follows in the steps of H&M. The British sportswear company is asking landlords to agree to turnover rents across his entire estate whereby up to 15% of fees would be linked to in-store sales.
Specifically, Mike Ashley, owner of the company and other companies such as House of Fraser, Jack Wills and Flannels, plans to include this measure in all stores where it operates, as well as in stores where it is renewing rental agreements.
In total, Sports Direct has seven hundred points of sale in the country. The British company is not the first to do this proposal to its landlords. A few months ago, H&M began applying this model in the British market for new contracts and rents that expire in 2020.