Apple seeking 50% rent cuts despite positive Covid performance

Tech giant Apple is reportedly seeking rent reductions of up to 50% from landlords despite seeing sales actually increase during the second quarter of the year.

According to the  Sunday Times, Apple has reportedly told a number of landlords across its 38 UK stores that it wishes to receive rent cuts and a rent-free period in return for extending leases by a few years.

The paper reports that the reasoning behind this is to bring its rent costs inline with other UK retailers who are benefiting from lower rents from landlords in order to keep their stores open.

It comes despite the retailer revealing that it saw Q2 sales increase by 11% to $59.7bn (£45.5m). For the period ending 27 June, Apple also reported net profit of $11.2bn (£8.5bn), up from $10bn (£7.6bn) the previous year.

Announcing the results Apple CEO Tim Cook said: “Apple’s record June quarter was driven by double-digit growth in both Products and Services and growth in each of our geographic segments.

“In uncertain times, this performance is a testament to the important role our products play in our customers’ lives and to Apple’s relentless innovation.”