Retailers blame profit dents on fast rise in rental rates

Players in the retail industry have blamed skyrocketing cost of rental spaces on their thinning profit lines.

Speaking during a retailers' forum convened by Retail Trade Association of Kenya, Muchiri Wahome, Deacons Group CEO said they face uncertain and rising costs on many of their rental agreements which leave them vulnerable to a fluctuating local currency.

“Many of the rental agreements are quoted in dollar rates, yet the retail landscape is increasingly changing, necessitating periodic risk assessments,’’ said Muchiri.

Rental costs, according to the retailers, have risen in all major towns in the country. They were also concerned about exorbitant charges for parking space for their customers, marketing fees including rates for branding and advertising, maintenance and security which they said eat into their profits.


- See more at: http://www.the-star.co.ke/news/article-186768/retailers-blame-profit-dents-fast-rise-rental-rates#sthash.WUsWBFSA.dpuf

 

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