Tenant discount negotiations
Lexmer * tenant demanded a 40% discount. The company threatened to vacate the location otherwise. Reason: insufficient advertising of the store in the shopping mall.
The analysis of the tenant’s data in the Focus System showed that its conversion declined 20% (over 2 months) and average check decreased amid the high tenant footfall. As a result, the tenant’s revenue dropped. It appeared that the store was transferring collections to other stores and did not purchase enough stock.
As a result, the store accepted the shopping mall’s line of reasoning that the problem was with the store. The tenant stayed with the mall. No discount was provided.
*not tenants’ real names