OVER 12,000 Small and medium-sized enterprises (SME) retailers received nearly $2 billion in rental assistance from landlords, according to the Shopping Centre Council of Australia.
SCCA data shows the 12,000+ receiving rental assistance up to the end of September is an increase from 10,045 at the end-of-July.
Having said that, requests for rental assistance are in decline as retail trading improves, consumer confidence returns, and foot traffic increases heading into the busy Christmas trading period.
Executive director Angus Nardi said the need for retail rental assistance has passed a critical turning point as retail trading conditions pickup and consumers return to stores.
He added that while some closures and restrictions such as maximum patron capacity remain in place, restrictions for retail, hospitality and other categories have largely eased across the country.
“All the key indicators are up, with foot traffic and store openings sitting at 95% and continuing to increase, average retail spend per visit is also increasing and Santa photos are being booked out as the Christmas trading peak approaches.
“Improved retail trading conditions, including easing government restrictions, increased foot traffic, store openings and retail spending, has seen a turnaround in the need for rental assistance provided to retailers with the rate of rental assistance now trending down. ~80% of rent relief requests have been agreed to, with the outstanding 20% lacking the required documentation, proof of reduction in turnover or the reasonable request threshold,” he added.
“Every step towards normalised COVID-safe trading gives a boost to retail, whether it’s lifting patron limits or reducing the one person per four square metre density rule as we’ve seen in some jurisdictions.
Nardi does not believe the Code of Conduct needs to be extended, he said most retailers had opted out of rental assistance, but some opportunistic traders were gaming the system.
“We strongly believe there is no evidence to justify any further extension of the Code of Conduct beyond December in jurisdictions such as Victoria, NSW and Queensland. It has served the purpose it was conceived for when we developed it with retailer groups in March.
“Continuing the code in the current favourable trading conditions has allowed some retailers to game the system and draw landlords into unnecessary stalemates,” Nardi said. “Our focus should be on getting everyone open and continuing to provide a COVID Safe and secure environment guided by public health principles, not bartering on rental agreements.”
