Almost all major regional & CBD Shopping Centres in the Sydney metropolitan area have by now announced they will be open on New Year's Day from 10am to 4pm.
the Centre Managers have written to their tennants reminding them that whilst up to now New Year's day has always been a Public Holiday, it is now part of the core trading hours & as such all retailers must be open for trade on New Year's day!
on the surface, this sounds like another typical push by ruthless shopping centre owners in dealing with their tennants.
But on a closer look, shopping centres will not gain any financial benefit from opening on New Year's day! All tennants have to pay their rent on public holidays anyway!
This may very well suggest that shopping centre owners may be in fact pressured by the big anchor tennants to force all smaller retailers to open on New Year's day!
The likes of Woolworths (owners of Big W, Dick Smith, dan Murphy's etc), David Jones, Myer & Wesfarmers (owners of Coles, Kmart & Targeti) always pay a substantially less rent per square metre to shopping centres due to the fact that they attract customers to centres>
But in their greedy & desperate attempt to appease their share holders, increase revenue & hold on to their respective market shares, on this one day of the year, they need other stores to help pull sufficient customer traffic!
When all smaller tenants are open, the vibrancy & ambiance of the shopping centres are present for enough customer traffic to generate volume sales in order for stores to be profitable!
This is because the big retailers know customers do not like going to centres where more than half the stores are closed & as a result parts of the centre look dull & dark!
Therefore by making all smaller retailers open & pay their staff penalty rates just to get the odd sleep deprived & possibly hung over customer walking in) the ever more dominating retail giants will be able to attract enough customers to their respective stores in order to make New Year's day a successful trading day!
the Centre Managers have written to their tennants reminding them that whilst up to now New Year's day has always been a Public Holiday, it is now part of the core trading hours & as such all retailers must be open for trade on New Year's day!
on the surface, this sounds like another typical push by ruthless shopping centre owners in dealing with their tennants.
But on a closer look, shopping centres will not gain any financial benefit from opening on New Year's day! All tennants have to pay their rent on public holidays anyway!
This may very well suggest that shopping centre owners may be in fact pressured by the big anchor tennants to force all smaller retailers to open on New Year's day!
The likes of Woolworths (owners of Big W, Dick Smith, dan Murphy's etc), David Jones, Myer & Wesfarmers (owners of Coles, Kmart & Targeti) always pay a substantially less rent per square metre to shopping centres due to the fact that they attract customers to centres>
But in their greedy & desperate attempt to appease their share holders, increase revenue & hold on to their respective market shares, on this one day of the year, they need other stores to help pull sufficient customer traffic!
When all smaller tenants are open, the vibrancy & ambiance of the shopping centres are present for enough customer traffic to generate volume sales in order for stores to be profitable!
This is because the big retailers know customers do not like going to centres where more than half the stores are closed & as a result parts of the centre look dull & dark!
Therefore by making all smaller retailers open & pay their staff penalty rates just to get the odd sleep deprived & possibly hung over customer walking in) the ever more dominating retail giants will be able to attract enough customers to their respective stores in order to make New Year's day a successful trading day!
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