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T5 retailers demand rent reductions |
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Tuesday, 06 May 2008 |
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Retailers have started to "mothball" stores in Heathrow's Terminal 5 following the delay in transferring long-haul flights to the
troubled new terminal. The hold-up has resulted in footfall and sales falling below expectations and caused angry retail chief executives to demand rent reductions from airports operator BAA after "dreadful" sales in the wake of the building's chaotic opening on March 27. Mothballing is a commonly used retail tactic whereby fully-stocked stores are temporarily closed.
Sales in T5 have been "dreadful", one retail chief executive told The Sunday Telegraph. "I would be surprised if most retailers were not down by one third versus their expectations," he said. Another store chief said: "Nobody in T5 is achieving the numbers they hoped. Everyone is in the same boat, and everyone is frustrated."
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