Landlords, including British Land and Land Securities, have promised to cut retailers’ service charges by up to 20 per cent, saving them tens of millions of pounds a year in bills and rescuing them from potential collapse.
The spat between the two groups has been raging for months. The dispute started back in July 2008, with the biggest names in retail campaigning to pay their rent a month in advance – rather than quarterly – to ease the impact on their cash flow.
As part of the truce, which was brokered by Francis Salway, the chief executive of Land Securities and Liz Peace, chief executive of the British Property Federation, landlords will outline a ten-point checklist to cut retailers’ costs.
Chris Harris, property director at Arcadia – the UK’s largest private clothing retailer which owns brands including Topshop, Dorothy Perkins and Wallis – says he hopes "other landlords can now be persuaded to adopt this philosophy".