PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Retail Chains Falling Behind On Rent Payments During Covid-19

By Raymond Pucci
June 9, 2020
in Analysts Coverage, Merchant
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Retail Chains Falling Behind On Rent Payments During Covid-19

The check is not in the mail. Which is what landlords of retail stores are now finding out. Shuttered stores do not register sales and e-commerce alone is not a sustainable business model for brick-and-mortar stores. It seems that the large merchant chains represent most of the delinquent tenants. According to retail landlord, DLC Management Corp, over 80% of the non-payers are the big national store brands. Meanwhile, Simon Property Group, the largest U.S. mall owner, is suing The Gap to the tune of $66 million in back rent. More states are unwinding the Covid-19 shutdown, but there are still challenges for merchants to overcome. Reopened stores have capacity restrictions plus stay-at-home consumers may not be rushing back to the mall. Many stores will never re-open as some legacy brands and mall anchors were in trouble even before the pandemic. Retail sales seemed to bottom out in April, giving merchants some hope of seeing a slow but steady pickup in shopper spending. Time will tell.

The following Chain Store Age article reports more on this topic which is excerpted below:

There are three types of bad actors among retail center tenants not paying rent, said DLC Management Corp. CEO Adam Ifshin. There are the ones that don’t communicate, the ones that don’t pay because they’re shut down, and the ones that are completely capable of paying and don’t want to. 

The last group, he said, is entirely composed of national chains. “Eighty to ninety percent of tenants not paying rent were the national brands,” said Ifshin, whose company owns 85 mostly outdoor centers in 24 states. DLC collected 73% of total rents in April and 65% in May.

“The mom and pops, meanwhile, are trying their best to pay. They’ve borrowed, they’ve dug into their life savings, and we’ve given them a three-month deferral program and are doing everything we can to support them,” he said.

Supply chain software provider Datex reported last month that only 42% of May retail rents had been collected by May 8. Companies that had paid zero rent were mostly nationals, including 24 Hour Fitness, AMC Theaters, Bed Bath & Beyond, Dave & Busters, Five Below, Foot Locker, H&M, Old Navy, and The Gap.

Overview provided by Raymond Pucci, Director, Merchant Services at Mercator Advisory Group.

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: CoronavirusDLC ManagementMerchantsRentRetailersSimon Malls

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    commercial card, Allpay ClearBank Prepaid Payments, wealth transfer

    How Banks Can Capture the Wealth Transfer from Boomers to Gen Z

    June 20, 2025
    embedded lending

    Embedded Lending as a Growth Strategy for ISVs—How to Maximize Revenue Potential

    June 18, 2025
    merchant ai

    Merchants Find More Use Cases for AI Amid Risks

    June 17, 2025
    prepaid payroll

    Taking the Check Out of Paycheck: The Role of Prepaid in Payroll

    June 16, 2025
    Banking-as-a-service BaaS

    Remodeling Main Street: How Community Banks Can Leverage the Banking-as-a-Service Paradigm

    June 12, 2025
    How Employee Performance Enhances the Customer Experience

    Three Strategies to Maximize Loyalty in the AI-Driven World 

    June 11, 2025
    PFM tools

    How FIs Are Cutting Through Subscription Clutter with PFM Tools

    June 10, 2025
    child identity theft

    Stranger Danger: Protecting Your Children from Identity Theft

    June 9, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result