Primark is seeking rent reductions of up to 30% across its stores, in response to several rivals that have used insolvency processes to cut payments to landlords.
The retailer is understood be in talks with landlords on lowering rents at locations where leases are coming up for renewal.
It is not yet clear how many stores feature in the discussions, but Primark is thought to be offering concessions in return for reductions. These include signing on for longer leases, and investing in refurbishments.
Primark has 189 stores in the UK. The portfolio measures around 10.2m sq ft, according to Radius Data Exchange. The fast fashion chain opened its largest flagship in Birmingham in April, with 160,000 sq ft across five storeys.
Retailers including Monsoon Accessorize and Arcadia are among those that have recently benefited from rent cuts and store closures through company voluntary arrangements.
A spokesperson for Primark said: “We don’t comment on the detail of commercial negotiations, but in principle we may on occasion look to secure rent reductions in circumstances where we are offering to extend leases on stores, or where we are investing in the property, thereby increasing the underlying value of the property.
“Similarly, as leases come to an end, we seek new agreements that reflect the prevailing market rental rate for the property and its circumstances. In the current market, those rates are often lower than past rates.
“Like any responsible retailer, we have a duty to our shareholders to maintain a competitive cost base, and we seek to maintain good relationships with our landlords.”
