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Wednesday, June 07, 2023

The Officers Club seeks high street units on turnover leases

The Officers Club has announced a requirement for retail units throughout the south of England on turnover leases, one of a growing number of retailers seeking units on this basis.

The Officers Club has instructed Leslie Furness, its retained agent in the south of England, to find units of 1,000 sq ft to 3,500 sq ft in busy fashion locations, particularly in shopping centres. As well as stipulating turnover leases only, the retailer is seeking terms of one to five years.

All major locations south of the M4 and M25 will be considered.

The Officers Club's retained agent in the north of England, Glen-Davison Angus, has recently undertaken a similar exercise and has so far succeeded in placing six units under offer on a turnover lease basis.

The move by The Officers Club follows a letter it issued to landlords earlier this year requesting three months' rent free and monthly, rather than quarterly rents, against a background in which the discount menswear sector is experiencing tough trading conditions.

It also comes at a time when the British Retail Consortium is leading a push to change the way rents are paid to property owners from quarterly to monthly, more closely reflecting the factory outlet sector in which turnover rents are also the norm.

Richard Lyons of Leslie Furness comments: "The Officers Club is seeking to expand in the south while naturally wishing to keep overheads to a minimum during a difficult trading environment which has seen Ciro Citterio and Eisenegger, among others, fall by the wayside. Their approach to securing leases is most likely to appeal to property owners who have redevelopment plans pending and would benefit from short-term income from a nationally recognised retailer."

The Officers Club has 180 stores UK-wide.