Relaxation of Sunday trading hours and problems for retailers from a property perspective

Rachel-Francis-Lang's letter to The Grocer highlighting the problems for retailers from a property perspective, should Sunday trading hours be relaxed, has been featured in the 25th July edition of the publication.

You can view the edited letter that was published as a PDF: Sunday trading costs - The Grocer

The full edition Rachel Francis-Lang's letter is below.

Sir:  The Budget proposals to relax Sunday trading laws could pose serious problems for retailers from a property perspective.

A well drafted lease will allow a retailer’s landlord to extend the permitted trading hours of a property on giving the retailer notice.  This right to extend trading hours when coupled with any relaxation of Sunday trading laws could hit retailers’ own budgets in at least three ways.

Firstly, a lease permitting extended trading hours may be more valuable and could result in higher rents following a rent review.  While the retailer would have factored in a rent review, they may not have budgeted for longer Sunday trading hours and the resulting hike in rental value.

Secondly, retailers with turnover rent leases, popular in shopping centres and arcades, could face a double whammy where the base rent rises as a result of a rent review and the turnover rent also rises due to an increase in takings at the till during the longer trading hours.

Thirdly, extended trading hours will lead to retailers facing a hike in charges for services provided by their landlords, such as lighting, security or car parking, which will need to be extended to support the longer trading hours.  Again, retailers may not have budgeted for this increase.

So, if a retailer’s landlord elects to extend permitted trading hours in line with the proposed changes in the law, the implications for high street businesses could go far beyond the sales-based concerns already raised by industry groups.