Pop-up shops hurting mall retailers
Australia’s peak retail body says the code covering the provision of short-term trading licences to pop-up shops in shopping malls is hurting permanent retailers and needs to change.
Australian Retail Association executive director Russell Zimmerman said problems with the Casual Mall Licensing Code of Practice included its voluntary nature, the fact that it was poorly advertised when landlords did sign up to it, and that there was “little or no access to complaint or recourse” for permanent retailers impacted by nearby pop-up shops.
“You have situations where a competing casual retailer may operate in the direct line of site of a permanent retailer paying big rents,” Mr Zimmerman told The Australian Financial Review.
“This could be someone selling cookbooks in front of a bookstore during the Christmas period or someone selling hot cross buns in front of a bakery at Easter”.
Established retailers also use pop-up stores, however. Kikki.K boss Iain Nairn last month said the stationery chain would augment its bricks and mortar and online stores with 30 pop-up locations for the Christmas trade.
Mr Zimmerman made his comments as the Australian Competition and Consumer Commission proposed to grant re-authorisation of the code to the Shopping Centre Council of Australia, which represents the country’s major mall landlords, for a period of three years.
However, due to concerns about the code from retailer groups including the ARA and the Franchise Council (made in submissions prior to the draft determination to re-authorise the code to the SCCA), the ACCC is seeking views from interested parties before it makes a final decision on whether to grant authorisation.
Submissions made by landlords Scentre Group, Vicinity Centres, Stockland, Charter Hall, Dexus and QIC all supported the SCCA’s re-authorisation as did the National Retail Association.
“Casual mall licensing is a key aspect of successful shopping centre operations,” said Vicinity Centres in its submission.
But in a statement, the ACCC said the draft determination highlighted “concerns from a number of retailers that the code is not working as effectively as it could and seeks comments on a number of possible improvements”.
The ACCC noted that to address some of these concerns the SCCA recently proposed to invite more retailers groups to join the code and sit on the Code Administration Committee.
“The ACCC strongly encourages the SCCA to increase retail representation. Further we consider the effectiveness of the committee would be improved by appointing an independent chair,” said ACCC deputy chair Dr Michael Schaper.
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