Kiabi, Etam, H & M, Fnac-Darty, Okaïdi, Micromania, Maisons du Monde, Decathlon… The big names in the trade are sounding the alarm. In an open letter, 100 leaders of 150 recognized brands asked parliamentarians for the same device to cap the rise in rents at 3.5% which households and VSEs already benefit from. A text is currently about to renew this measure until the beginning of 2024. Already approved on June 1 in the Assembly, it will be examined on June 7 by the Senators.
The large brands are thus demanding “to extend this cap for one year and to extend it to all companies”. The “rent shield” was put in place in the summer of 2022, and makes it possible to cap the increase in the reference rent index. A similar device caps the increase in the commercial rent index (ILC), for VSEs and SMEs. Last summer, the legislator had estimated that the big brands could negotiate adaptations with their landlords to slow down the increase in rents.
Cost increases and sales decline
This was not the case according to the latter, who claim that “less than 10% of landlords have agreed to support their tenants”. However, “rents and property charges are taking on an increasing weight, not to say unbearable” and “represent the first or second item of expenses for our businesses”, specify the signatories. On May 30, 14 trade and cinema federations had already alerted and asked the same thing to parliamentarians via a forum, stating that “the ILC increased by 10% between the end of 2019 and 2022”.
For managers, these increases are added to the increase in the cost of energy, wages and raw materials, while sales volumes are down. “Thousands of stores will not be able to support such a high indexation of rents two years in a row”, they warn. Several brands have already been forced into bankruptcy this past year. This is the case of La Grande Récré, Camaïeu and Go Sport.
In their letter, the leaders call on the State to assume its responsibility: “The public authorities at national and local level are investing several billion euros in the revitalization of the centers of medium-sized towns. To ensure that these investments are not reduced to nothing, it is there is an urgent need to act so that the explosion in rents does not further accelerate the commercial desertification of our country”.