19 July 2022, Mumbai:
The sales performance guarantee clause, where a retailer must meet a certain sales target failing which the mall has the right to seek the vacation of the space, is back as malls have started terminating contracts of brands that are unable to perform.
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The government's liberalization initiatives have aided in the expansion of organized retail forms in India. As malls are being built throughout the country, it is clear that the retail scene is changing.
India has seen a significant increase in commerce recently.
While organised malls used to have this in the contract before the pandemic, new malls are also making it part of the contract as most retailers are asking for revenue share. To make matters worse, a rent dispute between mall owners and tenants during the lockout has caused several malls to reassess their decisions deciding which brands to be allowed & maintain a presence in malls.
CREDITS: ET
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