Aug 03, 2020 10:49:00

Apple requests the owner of the actual store to ``halve the tenant fee in return for contract extension''

by

Niels Epting

Apple is reportedly asking owners to reduce rents at some stores in the UK by up to 50%. It is said that this request demanded the same treatment as other retailers who received part of the rent exemption due to the influence of the new coronavirus infection (COVID-19), but Apple's overall performance is rather It is the highest ever.

Apple demands 50% rent cuts for UK stores | Business | The Sunday Times
https://www.thetimes.co.uk/article/apple-demands-50-rent-cuts-for-uk-stores-k7klxmj8h

Apple Asks UK Store Landlords to Halve Rent: Sunday Times-Bloomberg
https://www.bloomberg.com/news/articles/2020-08-02/apple-asks-uk-landlords-to-halve-rent-after-record-sales

Apple Asks UK Retail Landlords for 50% Rent Cut Despite Record Sales-MacRumors
https://www.macrumors.com/2020/08/02/apple-asks-for-uk-rent-cut/

In February 2020, Apple announced a forecast that 'sales will decrease due to the impact of COVID-19', but according to the financial report for the second quarter (January-March) announced in May, It turns out that Apple's sales were up 1% compared to the same period last year. Furthermore, in the third quarter (April-June) announced in July, sales were 59,685 million dollars (about 6,240 billion yen), an increase of 11% from the same period of the previous year This is a record high.

Apple announces results for the third quarter of 2020, revealing that the release of the new iPhone will be delayed-GIGAZINE

The Times of the United Kingdom reported on August 2 'Apple is pushing significant rent reductions in UK stores despite unprecedented spikes in sales during lockdowns.' According to media reports, Apple has asked owners to cut 'rent-free periods' for some of their 38 stores in the UK by reducing rents by up to 50% during leases, effectively freeing rent. That. In return, Apple is proposing to extend the lease.

'Apple's aim is to enjoy the same benefits as other retailers whose rents have been reduced due to COVID-19's long-running shopping centers,' economics newspaper Bloomberg said. I pointed out.

by Open Grid Scheduler / Grid Engine

``Apple's store is one of the most profitable and popular in the industry, so owners are desperate to hold Apple,'' said MacRumors, a news outlet for Apple products, regarding the background behind Apple's bullish negotiations. There seems to be a tendency.'

'Apple's tough tactics are causing upset among owners,' the Times said. However, many stores still have leasing contracts for a few years, so it's likely that owners will have to make a final decision for the foreseeable future. The Times also asked Apple for comment, but Apple refused.