Sg Retailers: No Rental Rebates? We'll DIE!

[makapaaa]

<TABLE cellSpacing=0 cellPadding=0 width=452 border=0><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published February 27, 2009

</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Retailers seek rental rebates for 'survival'
Squeeze could lead to big job cuts, says SRA; CapitaLand to 'customise' solutions

By UMA SHANKARI
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(SINGAPORE) Up to 20,000 retail employees - 20 per cent of the sector's workforce - could be retrenched unless store rents are slashed, the Singapore Retailers Association (SRA) said yesterday after an emergency meeting.

Members' income has dived 20-30 per cent in the past few months, said SRA, which represents close to 300 retailers.
The main issue - and of critical concern - is high rents demanded by landlords 'who apparently lack an understanding of the plight retailers are facing', SRA said. But CapitaLand, which is Singapore's biggest retail landlord, listed out the steps it had taken to help retailers and said it would work with its tenants individually to customise solutions for them.
SRA, meanwhile, said that occupancy costs have climbed 50-80 per cent over the past three years. But with sales margins shrinking, landlords have been slow to acknowledge or respond.
'Initiatives offered to date are inadequate as they do not address the main concern of the retailers - that of cost containment in these difficult times,' SRA said.
Rent cuts of at least 20-30 per cent are an 'absolute necessity', it said in a statement. 'The industry is asking only for this, as the bare minimum, to ensure survival.
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</TD></TR></TBODY></TABLE>'Landlords and tenants exist symbiotically. It has to be understood that a strong partnership is necessary to ensure the survival of all parties in this current period, so there is a future to look forward to.'
Members' margins are now 'almost negligible, if not negative', the SRA statement said. 'With such a contraction, the industry is seriously concerned about the possibility of store closures. Unless occupancy costs are reduced, we are fearful that up to 20 per cent of our employees may be retrenched as a result of store closures.
'This could mean 20,000 people out of work - a major concern for retailers, and Singapore, and something the industry would not want to happen.'
SRA said other industries that feed off the retail sector - such as the media, food and beverage, and advertising - could also face job losses as a result of retailers' woes.
SRA said its members have agreed to share information more frequently and more openly - as a 'result of landlords' continuing reluctance to accede to the retail industry's pleas for rental rebates, with some even proposing rent increases'.
Misinformation has resulted in some retailers committing to lease agreements they otherwise would have thought about twice, or even three times, SRA said.
The shared information is expected to make retailers more aware of what their peers are doing.
A spokesman for CapitaLand pointed out, meanwhile, that after this year's Budget, the group had committed to pass on the 40 per cent property tax rebate to CapitaLand Retail and CapitaMall Trust tenants in full. A part of staff bonus was paid in the form of shopping vouchers to support tenants across 12 CapitaLand malls.
The spokesman also said that the most scientific way to look at sustainable rent was to look at each retailer's occupancy cost (rent/gross revenue).
'As a landlord, we are mindful that it is important that our tenants do a viable business so as to create a win-win situation. Thus all renewals are reviewed on an individual basis, based on their sustainable occupancy cost,' the spokesman said. 'We continue to stay close to our retailers, work with them individually to better understand the specific issues that they are facing, so that we can customise a solution jointly with them.'
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[The_Latest_H]

That's what I said in the Kopitiam thread:

While I only know that while Republicans have accused Democrats of increasing taxes on small businesses when they have no proof to state so in the Obama budget, I think the PAP is actually guilty of saying one thing and doing the exact opposite.

If especially Kopitiam is owned by a government corporation. Even if its a private/publicly-listed company, any tax cut granted to the company, should by law, be reflected in any cost-cutting measures so as to keep more self-employed people in employment.

I'd rather have hawkers still doing business, than closing shop and being unemployed and unable to find one for more than a year. That's when the State has to pay even more- costly also- in Workfare, if people are unemployed and cannot get enough money from the recent Budget.

Higher business costs due to taxes and other sources, and more unemployment as a result of business closures only make the economical recession worse, because of the rise in unemployment, and hence drop in productivity, efficiency, effectiveness and morale. This is not what an environment that the government, its civil servants and its corporations should foster. It should be doing the opposite and stem the tide of retrenchment, droppage in wage levels, and on unproductivity. But these hypocritical actions will only make the recession deeper and delay and make any eventual recovery even tougher.

And to note: many countries are giving tax credits- longer term- in order to encourage small businesses to remain open and to allow the private sector to at least remain viable.

Singapore seems to be doing too little, or doing another round of switch-and-bait tactics again with taxpayers money and this damages our economy, and any form of recovery.

 

[R4g3]

rebate also cannot cover the rental increase. just call up capitaland and ask them about their price you will know.

 

[congo9]

Move out , if you cant take the HEAT !

 

[Cestbon]

It cannot survive in open market. Then should close shop rather than asking for rebate. When the time are good they should have put some % of amount for reserved.

 

[funglung]

HA HA HA HA

THE SQUEEZE IS ON

AFTER STEALING 400-500++ BILLIONS FROM SINKIES INTO TEMASICK AND GIC AND LOSING MOST OF THOSE BILLIONS

LKY AND COCKROACHES IN WHITE NEED EVEN MORE BILLIONS

HOW CAN THEY ALLOW REBATES?

BILLIONS MORE MUST BE SUCKED AND SQUEEZED FROM SINKIES WHO STUPIDLY OR WITHOUT BALLS VOTED FOR LKY






LEE KUAN YEW LOST AND LOST DUNNO HOW MANY BILLIONS IN TEMASICK AND GIC

EVEN MORE BILLIONS HE THREW AWAY TO HIS DOGS AND COCKROACHES SO THEY CAN TAKE FRENCH COOKING LESSONS

LKY NEED MORE BILLIONS FROM SINKIES WHO VOTED FOR HIM AND FROM THOSE WHO VOIDED THEIR VOTES

EVEN IF YOU VOTE AGAINST HIM, NO DIFFERENCE.

COLLECTIVE PUNISHMENT AS SINKIES DID NOT TRY HARD ENOUGH TO KICK OUT THAT VAMPIRE BASTARD LKY

SO EXPECT EVERYTHING IN SINGAPORE TO GO UP AND UP

BASTARD LKY NEED YOUR $$$$$

HE SCREW YOU AND DEMAND THAT YOU THANK HIM FOR HIS FUCKING 'SUBISIDIESD BULLSHIT' AND 'AFFORDABLE' CON-TALK.

GO ALL OUT TO KICK ALL THOSE BASTARDS OUT

ALL OF THEM

DO NOT WAIT UNTIL ELECTION TIME
THE TIME TO ACT IS NOW!

TALK TO YOUR FRIENDS AND YOUR RELATIVES.

SUPPORT OPPOSITION PARTIES WITH YOUR TIME AND MONEY AND STAND BY THEM AND WITH THEM.

THEY SPEAK FOR YOU AND TRY TO SPEAK FOR YOU.

NOT LKY AND HIS BASTARDS IN WHITE WHO ONLY WANT YOUR MONEY AND TO FUCK YOU.


IF NOT FOR YOURSELF, THEN FOR THE FUTURE OF YOUR CHILDREN

THERE WILL NOT BE AN OBAMA AS PRESIDENT OF USA IF THE CIVIL RIGHTS MOVEMENT THERE WAS INTIMIDATED BY BEATINGS AND LYNCHINGS IN THE PAST.


THE TOBBLING OF LKY WILL NOT BE EASY, AND CAN BE BLOODY AS WELL.
THEY WILL NOT GIVE UP THE BILLIONS THAT THEY SUCKED FROM YOU AND CAN CONTINUE TO SCREW FROM YOU NOW AND IN FUTURE.


ONLY YOU HAVE THE POWER TO SAY 'NO MORE OF THAT' AND THROW EVERYONE OF THOSE BASTARDS OUT






Sinkies must organise themselves

Show that they got balls and can stand up to LKY intimidation.

Big money at stake.

Already 400-500++ billions got sucked and bled by LKY into his Temasick and GIC.
HOW MANY OTHER BILLIONS GOT SUCKED AND USED BY THEM IN GLC WHERE THEIR FAMILY MEMBERS AND MINISTERS AND BASTARDS IN WHITE ARE CHAIRMAN AND CEOS?

EVEN IF NO ELECTIONS, SINKIES MUST SPEAK WITH ALL THEIR FRIENDS AND ALL THEY KNOW

STAND UP TO THAT BASTARD LKY AND PAP BLOODSUCKERS

STAND WITH ALL THOSE THAT FIGHT BASTARD LKY

OR STAND UP YOURSELF IN YOUR CONSTITUENCY

DONT BE BULLIED BY THAT FUCKING COWARD LKY USING HIS CORRUPT KANGAROO COURTS AND ALL THAT HE CAN, AND WILL THROW AT YOU


You will fear them only if you allow yourself to fear them.

Just because THEY want you to fear them, must you fear those fucking bastards?

THEY ONLY CAN RULE YOU , AND BLED YOU , THROUGH FEAR AND INTIMIDATION.


SINKIES,

FIND YOUR BALLS AND STAND UP TO THEM.
THEY WILL THEN FEAR YOU.

AND YOU REGAIN YOUR MONEY AND YOUR FUTURE AND YOUR CHILDREN FUTURE.

DO NOT LET OUR MONEY GO TO FUND PAP DOGS FRENCH COOKING LESSONS

DO NOT DIE IN OLD FOLK HOMES IN JB.

FIND YOUR BALLS AND STAND UP TO THEM

 

[Conan the Barbarian]

Actually, the tenants are to be blamed as well. Nobody asked them
to bid that high or sign a contract to rent at those prices.

These high rentals are all factored into the prices we consumers pay.
And in turn, all become slaves for the landlord.

So i wish they will stop whining and start voting with their $$$
by not paying so much rental next time.:oIo:

 

[DerekLeung]

rebate also cannot cover the rental increase. just call up capitaland and ask them about their price you will know.

They give each individual tenant customised terms and rebates !
This meaning that those that are likely give problem will get more rebates
and those that quietly pay up will get less rebates !
You want to do something fair announce it islandwide !