An increasing number of retail tenants are now negotiating with their landlord so that rent is charged based on turnover. It is therefore important to understand the component parts of turnover reported by tenants (tills, mobile technology, click and collect, concession income).
It is also necessary to clarify how returns from sales originating from other stores/online are treated, as well as sales not remitted in full at the point of sale (discounts, gift/loyalty cards and deposits). It is also important to understand how other in-store income is treated, for example grants and similar contributions.
We review turnover used in the calculation of turnover rent, analysing the various components of turnover and report on daily, weekly, and monthly trends. Our experienced team will make sure that the turnover components are as set out within the definition of turnover in the lease.