The country’s largest retailer, DLF, in an effort to pacify the irate retailers of its malls at DLF Place, Saket and DLF Place, Vasant Kunj, has offered to launch a joint marketing initiative.
DLF has offered to refund a month’s rental to the retailers if they advertise for the mall and their brands between June and September 2009.
The retailers, who are part of the ongoing negotiations with the DLF mall management, told Business Standard that the DLF mall management has conveyed that “the footfalls depend on the marketing of a brand. We are already marketing our malls across the board through various modes and are willing to support our retailers’ marketing efforts by refunding one month’s rentals after September.”
A DLF spokesperson, in a reply to question from Business Standard, said: “As part of our launch, DLF has provided generous support to our retail partners. The quantum and terms is a function of initiatives planned by the brand.”
The retailers of DLF Place in Vasant Kunj and Saket are pushing the company to bring down the rentals, as the customer footfall is very low to make profits with current rentals.
The average monthly rentals at DLF’s Vasant Kunj and Saket malls for ground floor, first floor and second floor are Rs 225, Rs 180 and Rs 150 per sq. ft, respectively.
Retailers at the Vasant Kunj mall want a rent-free period for a full year and a 50 per cent discount on rentals for a second year. While those at Saket want at least a 50 per cent discount on the first-year rentals and a lesser quantum in the next year.
The retailers at the Saket mall are on a 50 per cent discount period till May, while Vasant Kunj mall retailers are getting 100 per cent rent waiver for the same period.