High Street

Primark to push for reduction in rent

Fashion brand Primark is pushing for a reduction in rents at stores, after a number of competitors have secured rental reductions via CVAs this year.

The retailer is pushing for a 30% reduction in rates on stores where leases have several years left to run, and is offering to invest in refurbishment, according to the Sunday Times.

It is not yet clear how many of the company’s 189 stores might secure cost cuts, but it is thought to be offering concessions including signing on to longer term leases or investing in refurbishments that it believes will “increase the property’s value”.

The move comes after competitors Monsoon and Arcadia approved CVAs, which reduced rates allowing the companies to restructure and close underperforming stores.

The discount retailer is thriving against the uncertain retail market, as its half-year operating profit jumped 25% to £426m during the six months ending 2 March.

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