PSNPH: Tenants do not get information about footfall in shopping centers

by   CIJ News iDesk III
2022-09-21   09:21

Why are unit data for individual objects hidden?

The Polish Association of Retail Tenants (PSNPH) calls for tenants to receive systematic data on the number of visitors to the facility in which they operate from the owners or managers of shopping centers. Currently, only aggregated data on traffic in shopping centers for the whole of Poland are provided. However, no one knows the number of customers visiting a particular shopping mall. Such data is necessary for stores and service outlets for the proper planning of sales and development in a given location.

“Access to data on the number of customers visiting the facility in which we operate should be a mandatory and permanent element of mutual relations and settlements between the shopping center and the tenant. This information should be made available on a monthly basis. Since aggregated data are provided, we assume that it is based on individual data. This is important information for every location where we have stores or service points. Such an analysis is necessary for assortment planning, employment, further development or promotion. We do not understand why owners or managers of shopping centers refuse to provide us with such data. Does this mean that this data is disturbing? Or maybe aggregated data is not a real reflection of traffic in shopping centers? We also do not know what is the method of measuring this data? What is the methodology used? These are questions that no one answers to us,” says Katarzyna Marczuk, spokesman for the Polish Association of Retail Tenants (PSNPH).

Recently, owners of shopping centers are pushing through new contracts for tenants, which increase rent based on turnover on the Internet. This is a very dangerous and unfair practice that cannot be accepted in the legal standard. Online sales are completely separate from sales in a physical location - they require separate financial outlays and separate management. Demand for internet turnover fees cannot be accepted by tenants.
PSNPH emphasizes that it is tenants who build the value of shopping centers, create jobs for over 400,000 people, and provide tax revenues to the state budget and local government funds. It is tenants in shopping centers that stimulate the Polish economy by covering the costs of servicing galleries by companies from many industries - such as security, cleaning, technical maintenance, and marketing. Such costs are estimated at PLN 3.4 billion annually.

Additionally, tenants in shopping centers cover all taxes paid by shopping centers to the state and local government budgets:
• CIT tax - over PLN 500 million annually
• Real estate tax in the amount of over PLN 600 million per year
• Fees for perpetual usufruct in the amount of over PLN 200 million per year
• VAT generated by tenants of shopping centers amounts to PLN 4 billion annually
Moreover, as Marcin Ochnik from ZPPHIU points out, the costs of tenants in shopping centers have been systematically growing in recent years. This applies to the ongoing running and maintenance of business - which means that the profitability of commercial and service companies using space in shopping malls decreases and there is no prospect of changing the trend. Energy prices increased by as much as 80%, rents, exchange rates (settlements are made as a conversion rate - euro), salaries, costs of transport and additional services.

Katarzyna Marczuk - for ten years associated with the retail market, in the area of ​​expansion. He has experience in the development of the sales network, in distribution structures and managing the work of sales and project teams. He also has experience in building a network of traditional stationary premises, commercial islands and mobile forms of sales. For over a year, he has been the Manager of the Expansion Department at Yes Jewelery.
The Polish Association of Retail Tenants is a voluntary, self-governing and permanent association established to strengthen cooperation between tenants of commercial space in shopping centers and to achieve the goals set out in the association's statute.

PSNPH goals:
1. Supporting Tenants to protect their rights and restore the balance of the parties, in particular as regards concluded lease agreements.
2. Addressing state and local authorities, as well as other bodies or organizations, with petitions and appeals for support for the implementation of the Association's goals and tasks.
3. Providing legal assistance to Tenants, as far as possible, or indicating to Tenants persons and institutions that provide such assistance.
4. Issuing opinions on draft legal acts and addressing politicians, bodies or organizations to undertake a legislative initiative aimed at protecting the interests of Tenants and ensuring the parties' balance in tenancy relations,
5. Informing the Office of Competition and Consumer Protection about the Lessor's practices and practices that are inconsistent with the law and by them prohibited contractual clauses.

Source: PSNPH