Reject Shop arcs up about rental rises

The Reject Shop says it may shutter more of its stores as the company promises a “more aggressive approach” with landlords over rent hikes.

“It is not sustainable that rental increases are running at between two and three times the CPI index in an environment of low wage growth and record low interest rates,” chairman Steven Fisher was due to tell shareholders at the annual general meeting on Wednesday.

“The company will have no hesitation in exiting leases where the occupancy costs do not meet our rent to sales criteria. This approach may see further store closures and in some cases relocation to more affordable opportunities”.

AAP

Be the first to comment

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.