Fashion retailer H&M is demanding that new clauses be added to its UK leases as it feels that shopping centres are poorly managed, it has been reported today.
The Swedish retailer is seeking additional clauses within its existing contracts, according to The Times, in order to streamline its international portfolio management.
It is claimed that H&M favours the terms of leases it holds in Europe and elsewhere and is calling for a clause to be added to any further leases in the UK which will see the amount of rent it owes be reduced if a shopping centre housing one its stores falls more than 15 per cent vacant.
H&M currently trades from over 2,600 stores across 48 countries though its demands have been met with frustration in Britain, The Times reported, as developers claim that such clauses may make it hard to secure development finance should the practice become widespread.
In response to the claims, an H&M spokesperson commented:” As a general rule, H&M never share information on agreements between us and a landlord/partner, we wouldn ´t consider it good business ethics.
“We always strive to create mutually fair deals reflecting market conditions.
“Adding 300 new stores this year the H&M group is growing rapidly, and we see this as an indication that our lease structure works for both us and our partners.”