The Singapore Retailers Association (SRA) says that 20,000 employees may be retrenched as a result of store closures, if landlords do not lower rentals.
It says members’ incomes have contracted by 20 to 30 per cent over the last few months, and that margins are now almost negligible, if not negative.
Yet, rental rates have not come down for many retailers, says the association.
Occupancy costs have risen 50 to 80 per cent over the last three years.
SRA’s members have decided to ask for a rental rebate of at least 20 to 30 per cent to ensure their survival.
Source : Channel NewsAsia – 26 Feb 2009