Irish Times article on implementing software modules for turnover based rental agreements features CBE EPoS software.
Article printed in ‘Business + Commercial Property’, Irish Times 16/5/12
Monitoring of turnover 'makes rent deals fairer'
THE INCREASING tendency by multiple traders to pay retail rents based on a percentage of the turnover has predictably led to the development of a software module to monitor turnover figures.
Several of the large UK and Irish traders have opened new stores in provincial cities and towns over the past three years in spite of the fall-off in consumer spending.
In most cases, the risk for the retailers is minimal because they have been able to negotiate rents which account for no more than 5 to 10 per cent of the turnover. In a few instances, the tenants have also undertaken to pay a small base rent as well as a proportion of the turnover.
Shopping centre owners faced with an ever-increasing number of business failures have had no option but to settle for what they regard as punitive rental terms. If they don’t, then the shopping centres will have even more boarded-up outlets.
The new rent arrangements has prompted CBE, the Irish supplier of retail IT systems, to introduce an add-on software module to their electronic point of sale solution.
Sean Kenna of CBE says their new software development ensures fairness for both landlords and tenants. In some cases, the turnover figures used had caused consternation for either the tenant or landlord, so the CBE solution ensured transparency for both parties. The new facility allowed landlords access to turnover figures on leased properties – but only with the tenants’ consent.
CBE said that with both parties agreeing to implement the new solution it would negate the possibility of rental disputes as both would have access to the figures if and when they were required.