JOIN USMalls reopen, shopkeepers want waiver of two months' rent
Hundreds of shopkeepers are desperately waiting for malls to waive the rent for two months of lockdown even as the shopping hubs reopened on Monday.
Shopkeepers at Mantri Square, one of the largest malls in the city, welcomed the reopening of the malls but expressed apprehensions about doing the business amid the pandemic.
"We are glad that the doors have been unlocked but we are worried about how long it will take for normality to return," said Naveen Kumar, who runs an exclusive store of Wildcraft merchandise. "Many of us have requested the mall authorities to waive the rent for April and May considering the full closure."
Asked about many popular clothing shops remaining shut, the manager at another store said many owners had decided to wait for the footfall to increase.
Wait and watch
"Beginning the operations involves huge expenses as we have to pay the employees. It is no surprise that many have decided to open only after seeing an increase in the number of visitors," he said.
Chairman and Managing Director of Mantri Developers Private Limited, Sushil Mantri, did not respond to calls or text messages from DH.
Footfall not impressive
Venkat Ravan, an area manager of a popular clothing brand which has set up shop in several malls, said previously each shop had at least 25 visitors on a weekday.
"That’s the lowest. On weekends, the number would cross 80 and we would see good business. We fear that it may take three to four months for normality to return. The recovery of finances is difficult for many shops,” he said.
The monthly rent in malls ranges from Rs 160 to Rs 200 per square foot and goes up further depending on the location.
The burden of paying the rent for two months when they had zero revenue has forced many businesses to scout for alternatives.
Brigade Group waives 50% rent
The Brigade Group, which runs prominent malls, Orion in Yeshwantpur and Orion East, has agreed to waive 50% of the rent for April and May. It has also decided to continue the 50% waiver for another four months in view of the reduced footfall, said Shashie Kumar, CEO, Brigade Orion.
The Brigade Group is likely to decide on charging full rent after looking into the growth in business transactions in the coming months. The revenue for each month will be compared with the figures for the corresponding month in the previous year.