Apple asks UK retail landlords for rent cut by 50%
In exchange for extended leases by several years.
Apple is asking its retail store landlords in the UK to cut rent by up to 50 percent, according to The Sunday Times. On condition that the landlords agree to cut out the rental charge and offer a “rent-free period” for a certain duration, Apple is reportedly prepared to extend lease agreements by several years.
Due to the COIVD-19 pandemic, foot traffic at retail locations lowered significantly, and many mall operators offered a discounted rent in the UK. Apple wants its rent to match the price paid by other retailers amid current situation despite a record quarter recently.
Apple retail stores are among the most profitable in the industry. Apple operates 38 retail stores in the UK, which have been reopened now after the shutdowns caused by COVID-19. The company declined to comment to The Sunday Times.