Tension builds up between malls, retailers over proposed rental changes

Malls usually sign 9-year agreements with retailers with a rental hike of 15 per cent

A proposal by leading malls in India to increase rentals every year has led to friction with brands as retailers want to retain the existing system of rental hikes every three years, according to a report in The Economic Times.

Large retailers, who operate a number of stores across the country, are opposing the move by malls as it will increase their expenditure considerably. Discussions are underway to arrive at a decision acceptable to all parties.

Malls