Vishal Pulls Down Rentals For 50 Stores

Myiris.com:

Vishal Retail (Vishal) has effectively bargained rentals of about a third of its stores across the country even as other retailers are negotiating for lower prices, reports Business Standard.

Vishal has been able to settle with the lower rentals for at least 50 stores across the country helping the retailer to reduce rentals by as much as 35%.

The company has conveyed to the store owners that they will move their stores to other places if they don`t reduce the rents.

An economic slowdown with job cuts has pushed several retailers and companies to freeze their expansion plans, leaving mall developers and other real estate companies with excess stock.

Vishal Retail is trying to work out different strategies to cut the rental costs. The company has decided to open all of its new stores under the franchisee model. Vishal Retail (Q, N,C,F)* has its focus on small-format stores and it plans to re-size around 25 of its stores.

The company aims to increase the number of stores from 178 to 200 in the next three months.

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