Call for action on retail rents as survey indicates over 50,000 jobs lost

Over 50,000 jobs have been lost as a result of difficult trading conditions in the retail sector, including upward-only rent reviews, it has been claimed.

The results of a survey published today by Retail Excellence Ireland indicate that retail sales fell by 30% between 2009 and 2011, but rental costs were reduced by just less than 4%.

The stores surveyed paid an average of nearly €160,000 a year in rent, while reductions over the three years averaged €6,300 per year.

"Research conducted with 1,418 leasehold retail stores nationwide found that over the period 2009-11 rents were reduced by an average of only 3.83%," the organisation said.

"Over the same period retail industry sales decreased by 30% and over 50,000 retail jobs were lost, with employment in the sector falling to 255,000."

The group has pointed to flaws in rent rules, such as the one that allows new tenants to command rent at 50% lower than legacy tenants, forcing long-established retailers out of business.

David Fitzsimons, Chief Executive of Retail Excellence Ireland, said the Government must act to abolish upward-only rents, or businesses will fail.

"The market is down about 30% over the past four years and unfortunately one of the major fallouts of that is the loss of 55,000 retail industry jobs over that period," he said.

"What we need is immediate Government intervention, as promised, on the matter of upward-only rents."

Retail Excellence Ireland is the largest retail industry group in Ireland with over 8,500 store members employing over 110,000 people.

"Businesses can flex every other cost in their business - the only thing that remains fixed is rent, and it's simply at an untenable level."