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Last Updated : Apr 09, 2020 10:22 AM IST | Source: Moneycontrol.com

Coronavirus impact | Retailers seek revenue-sharing model with malls: Report

Only essential items, such as food and groceries, can be sold during the lockdown, causing many retailers to close stores and halt operations.

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A group of over 175 large retailers and restaurant chains have asked mall and high-street landlords to move to a revenue-sharing model for the next nine months to recover from the impact of the coronavirus outbreak.

The coalition includes Future Group, Aditya Birla Fashion, Levi's and Domino's Pizza, according to a report by The Economic Times.

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Moneycontrol could not independently verify the story.

India is currently in a nationwide lockdown to help prevent the spread of the novel coronavirus, or COVID-19. Only essential items, such as food and groceries, can be sold during this period, causing many retailers to close stores and halt operations.

"It is not even a request – it is an appeal from all tenants to all landlords across the board to collaborate in this unprecedented time to build a partnership to make the retail industry survive," said Rakesh Biyani, joint Managing Director of Future Group, as quoted in the report.

He added that retailers also plan to ask the Centre for a one-year moratorium on loans, concessional electricity tariffs and a waiver of property tax for a year from state governments.

Mall owners say it is still too early to assess the final impact of the coronavirus pandemic, and they are still not sure when the business will resume.

"Today, the situation is very fluid. We will wait for the situation to be better and only then we will know the real picture," said Rajendra Kalkar, president - west at Phoenix Mills.

Also read: Coronavirus impact | Retail industry staring at nearly 20% layoffs

After the lockdown is lifted, retailers might have to lay off 20 percent of their staff to survive, according to a survey by the Retailers Association of India (RAI).

The survey also indicated that non-grocery/food retailers are expected to report 80-100 percent reduction in sales due to the lockdown.

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First Published on Apr 9, 2020 10:22 am
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