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Choice Store
Choice Store is an independent British retailer, providing the latest in desirable designer fashion. A growing destination store for menswear, women’s wear and kids wear, their collections feature globally recognised brands and cutting edge new designers.
What is the Demand for Turnover-Based Rents?
It’s no secret that the COVID-19 pandemic and the three national lockdowns have caused some major issues for both landlords and tenants alike, in particular high street retailers who are understandably struggling with cash flow problems during the current restrictions. The retail news is littered with stories of major high street names that are in CVAs or administration and are looking for support at this time. Many such as New Look, All Saints and Ann Summers, to name a few, are seeking for landlords to take a different approach to managing their property rentals. More and more landlords who are seeking a different approach, that will surely take them into the ‘new retail’, are now looking at a turnover rent based commercial leasing framework for its retail and hospitality occupants. But what does this involve and how is it managed? Eurostop, is a leading tenant management software provider, and is powering many landlords who have already adopted this model as an alternative to fixed rent. What Exactly is Turnover-Based Rent? In the simplest of terms, turnover-based rent means that a proportion of your rent is calculated as a percentage of the sales turnover, or revenue, that you’ve received from your commercial store over a period of time, which sits alongside a ‘base rent’. The base rent is guaranteed and may be subject to review as per traditional commercial leases. The proportion of base and turnover based rent is usually agreed between the retailer and landlord and may vary. This number can also take into account the retail sector where a particular commercial rental property is located. For example, those with lower turnover and a greater profit margin could be charged a higher percentage; those with higher turnovers and lower profits, a lower one. Why is Turnover-Based Rent in Such Demand? A turnover-based rental model is a more flexible model. While for tenants it can take some of the financial pressure off when times are tough, there are several factors which can make it a mutually beneficial arrangement, for both landlords and tenants. Indeed, in the US, the same model is referred to as ‘revenue sharing’. Because a proportion of the rent is based on trading performance, landlords will benefit also and receive an increased income when trading is high; and for tenants, during more difficult times, like during the Covid-19 pandemic, tenants have a little more breathing space. Although a fixed rental agreement, with periodic increments can seem more attractive for landlords, the current situation highlights some of the disadvantages of this traditional approach. For the landlord, a new, collaborative approach can bring other benefits. Data sharing from such a partnership can also allow landlords to optimise retail space and the shopping experience by allowing them to identify good quality tenants and retail sectors. In turn, this valuable information can be used to adjust and plan retail space in their shopping centers and commercial properties accordingly. This allows landlords to ensure that their space remains occupied and avoids high turnover or worse still, empty space. …such a partnership can also allow landlords to optimise retail space and the shopping experience How is A Turnover-based Rental Model Implemented? In order to transition to this new leasing model, property owners will need a system that supports transparent data collection, processing and analytics. Landlords will require a system that can reliably and securely collect accurate sales turnover information from each of its tenants, and report on this data to provide the correct business insights. In addition, there are other considerations in assessing retail turnover rents particularly in an ‘omnichannel’ ecosystem where the path to purchase isn’t just in store but also online, and then with online there are issues such as taking into account returns. A Few Things to Keep in Mind For a turnover-based rent model to work for both tenants and landlords, it’s important to: Keep Open Provisions: This is where tenants are required to keep a property open during specific hours negotiated with their landlord unless it can’t be opened due to damage or safety concerns. Defining Turnover: Another important component is having a clearly defined turnover clause that’s based on the historic performance of a business. Confidentiality: For this type of rent model to work properly, landlords will need to obtain a variety of information from tenants, everything from sales data to other information. This means using a safe and secure tenant management system is essential for confidentiality purposes. Contact us today for more about turnover-based tenant management solutions For more information about the advantages of investing in a tenant management system, contact the team from Eurostop today. We also specialise in retail EPOS systems, inventory control software, and more, so contact us now.
Eurostop launches suite of Mobile Retail apps for optimising stock in warehouses and stores
A range of mobile retail apps designed to manage retail inventory with ease. WHapp, STapp and SKapp run on Android mobile devices to provide flexible and on the go options for managing stock throughout your retail estate with accuracy and ease. Available on monthly rental plans, these affordable apps enable retailers to scale up or down with their chosen apps, without commitment, which is ideal in these challenging times. When run on devices with in built scanning, they provide true freedom and flexibility to accurately manage and make the most of stock in the business, without the need for docking between operations. With options to run on WiFi or SIM, and online and offline modes, the apps can be used anywhere. WHapp comprises goods in functionality, against single or multiple purchase orders, automatic purchase order matching using ordered delivery drop dates, store replenishment and online single or bulk order picking, with multi location order sourcing, efficient bin to bin or bin to trolley movements, and transfers out to store or secondary warehouse. The store app, STapp, allows mobile management of stock location, receiving deliveries, fulfilment options and transfers to store and returns to warehouse. SKapp affords retailers the options to take full or partial stocktakes both in store, or in the warehouse, with or without locations. With stocktakes being performed in house, when it is convenient, not only can retailers identify and reduce shrinkage, but also reduce operating costs and stock expenditure. Furthermore, the connected suite of apps communicate seamlessly with Eurostop’s Head Office system to ensure that a single view of stock is accurate at all times. The apps are already being rolled out to several customers including Robert Goddard, Choice Stores, and SuitDirect, part of the Baird Group. Roy Meunier, Solutions Consultant at Eurostop said ‘Our quick and reliable apps allow retailers to manage retail operations on the go, replacing time consuming manual operations, which can be resource heavy and prone to error. They are extremely easy to use, which means that you can get up and running quickly, minimising training requirements.’ Find out more about our mobile retail apps, or arrange a free, no obligation online demo.
Suit Direct
Suit Direct is one of the fastest growing suit retailers in the UK, with fantastic deals on suits, formalwear, casualwear and accessories from some of the UK’s leading designers.
Aldo
ALDO is a global footwear, handbags, and accessories brand selling fashion-forward styles and the newest trends that could compliment any wardrobe from business attire, dressy casual to evening outings.
Merryhatton Garden Centre
Merryhatton Garden Centre and café is a favourite destination for gardeners, families and shoppers from across East Lothian and beyond.
Ben Sherman
The Ben Sherman shirt is an icon and has been adopted by almost every youth culture or style movement of the last 5 decades.
Trotters independent childrenswear retailer re-opens using Mobile POS from Eurostop to meet social distancing rules
Mobile POS aids customer journey and consumer confidence in meeting government guidelines Trotters, an independent childrenswear retailer and longstanding user of Eurostop systems, is using mpos, a one-device mobile POS solution to support social distancing as part of its reopening measures. Trotters’ staff is using mpos to serve customers individually on the shopfloor including providing the option to pay, to help avoid busy till points and manage social contact instore to meet the new guidelines. The Eurostop mpos solution is based on the Sunmi P2 Lite and provides in built scanning, EPOS and integrated card payments on one device. “We have spent a long time working out how we could welcome customers back whilst adhering to the latest government guidelines on social distancing,” said Natasha Lunney, COO at Trotters. “We were due to celebrate trading for 30 years this year and it’s the first time in our history that we’ve been faced with such a challenge. Eurostop’s mpos has definitely helped in our flagship store as we’re able to serve customers from anywhere on the shop floor, making the customer journey much less stressful and helping to keep to the new social distancing measures.” Jeremy Rodrigues, Product Manager at Eurostop added; “Eurostop’s focus has always been to develop technology solutions that meet the needs of retailers. The opportunity to start re-opening stores is welcome news, although we recognise it brings new challenges as retailers balance business needs with new stringent social distancing guidelines. mpos and MyShoppr® are mobile and app based solutions that both enable retailers to improve the customer journey, while complying with the new rules.” Find out more about how retail technology can help you, post COVID-19.
Shaws Department stores select Mobile POS from Eurostop to support social distancing
As stores are set to reopen, Mobile POS provides a seamless flow from customer service to final transaction, supporting social distancing post COVID-19 lockdown. Shaws, an established user of Eurostop systems with branches throughout Ireland is to implement mpos, a one-device mobile POS solution to support social distancing in-store. The majority of Shaws stores are scheduled to open from 15th June, with the retailer using the Eurostop solution as part of its reopening plans. The solution will be deployed in the Beauty department before rolling it out across other departments, with future plans to include Shaws concession partners. Customers will be able to social distance by dealing with just one member of staff for product consultations and then complete the purchase, without the need to go to a bank of tills. The Eurostop mpos solution is based on the Sunmi P2 Lite and provides in built scanning, EPOS and integrated card payments on one device. “Like many retailers we are looking at ways to safeguard our customers and staff as we reopen after the Coronavirus pandemic,” said Ian Fanning, Retail Director at Shaws. “The Eurostop mpos will enable us to minimise the number of interactions needed between staff and customers, because we can take payment for goods at any location within the store. This means that customers do not necessarily need to go to the fixed cash desks, supporting social distancing measures.” Business Development Manager at Eurostop Stuart Ward added; “At Eurostop we have specialised in developing systems for fashion, footwear and lifestyle retailers for over 30 years. The sector is extraordinarily resilient, and our aim is to deliver technology solutions that can help our many clients around the world open their doors to customers once again, and get back to what they do best. Our mobile and app based solutions, like mpos and MyShoppr® both enable retailers to improve the customer journey, while complying with social distancing rules.” Find out more about mpos and how it could help you as retail stores come out of COVID-19 lockdown.
Retailers in Singapore can now save up to 90% of cost on Eurostop POS Software and Inventory Systems with the PSG Grant
Eurostop Singapore Pte Ltd. awarded as a PSG approved vendor for POS software and inventory management software in Singapore. Eurostop Singapore Pte Ltd. has been appointed as a Pre-Approved SMEs Go Digital Vendor for our EPOS and enhanced retail management system, e-retail. This means that eligible retailers may be able to apply for a government grant of up to 90% when purchasing these POS software and inventory management systems in Singapore. The Singapore Government grants, such as the Productivity Solutions Grant (PSG), support companies who are keen on adopting IT solutions to enhance business processes and increase productivity. It spans several industries, including retail. SMEs can apply for PSG if they meet certain criteria, and may be eligible for a pre-scoped and government agency approved solution. Solutions are evaluated on capacity and capability; as well as whether the solution meets the requirements of target sectors. Eurostop Singapore Pte Ltd. are delighted to be appointed for the period 11 June 2020 to 10th June 2021 by Infocomm Media Development Authority (IMDA), with the maximum government funding support level being raised to 90%. Hew Poh Yin, Managing Director, Eurostop Singapore said “In the current situation with COVID-19, I am pleased that eligible retailers looking to enhance their IT retail operations will receive government support, which is much needed at this time. Retailers will be able to benefit from Eurostop’s POS and Head Office Systems without significant investment. Furthermore, I hope that our systems will enable them to operate more efficiently and improve business, aiding recovery, especially at this time. If you are interested in finding out more about the PSG grant and how our solutions can help your retail business, please get in contact today.