Premier Investments warns landlords must 'right size' rents

Premier Investments warns landlords must 'right size' rents
  1. Premier Investments warns landlords must 'right size' rents
    Premier Investments says high rents in the apparel sector must come down to reflect the challenges weighing on this retail…

Premier Investments has foreshadowed more store closures as it warns landlords that the high rents in the apparel sector must come down to reflect the challenges weighing on this retail segment.

The Solomon Lew-controlled retailer owns the highly successful  children's stationery chain Smiggle and Peter Alexander as well as a clutch of mid-market apparel brands, including Jacqui E and Portmans.

  • Share on Facebook SHARE
  • Share on Twitter TWEET
  • Link
Premier Investments, which owns Portmans, says rents must come down to reflect the challenges weighing on the sector. Premier Investments, which owns Portmans, says rents must come down to reflect the challenges weighing on the sector. Photo: Dean Sewell

Four of Premier's apparel brands reported negative growth in total sales during the first half, and chief executive Mark McInnes said the collapse of  Marcs and David Lawrence had a material impact on the value of some of that rental real estate.

He said the space those fashion brands were vacating was worth "far less than it once was".

"You can assume that we are talking to landlords about making sure they right size their rent in line with market values," Mr McInnes said. "And we are doing that for all our brands."

Premier's online sales grew 48 per cent in the first half and it said  the expansion of this channel had to be balanced with its bricks and mortar network.


Portmans and Jacqui E attract "exceptional" online sales, according to Premier, and remain "very profitable brands" for the group.

However, Mr McInnes said customers were choosing to buy those brands online, rendering investment in online operations very important.

"Equally we're negotiating hard with landlords to lower their rent to ensure that the profitability at the shop level remains as there's leakage to the online business," Mr McInnes said.

"That's a challenge for the landlords to get used to at lease expiry, significant pressure from our property team to …

  1. Half of CMOs unprepared for serialisation requirements, says Tracelink - Health
    As many as 400 contract manufacturing organisations (CMOs) will not be ready for upcoming US and EU track-and-trace regulations, says supply chain services firm…
  2. Mylan confirms plan to close Meda Soma plant in Illinois - Health
    Mylan will close a manufacturing site in Decatur, Illinois that it gained when it bought Swedish drug maker Meda last…
  3. Lionel Messi banned for four international matches for swearing at match official - Health
    03.28 / 16:46
    Argentina forward Lionel Messi has been banned from their next four competitive internationals, starting with Tuesday's World Cup qualifier in Bolivia, for swearing at a match official, FIFA said on…
  4. Permira to buy Lyophilization Services of New England - Health
    Private equity fund Permira has announced its intention to buy freeze drying firm Lyophilization Services of New England Inc…
  5. I gave up TV for a year. This is what I got done instead - Health
    03.28 / 15:06
    For all the time we spend with it, TV doesn't repay us very nicely. People who watch more television are generally unhappier, heavier and worse sleepers, and have a higher risk of death over a defined length of…
  6. Dutch health council says human embryos can be created for research - Health
    03.28 / 14:00
    The Dutch health council is recommending that the law covering human embryos be changed to allow the creation of…
  7. Newsreader Talitha Cummins sues Channel Seven over alleged maternity leave sacking - Health
    03.28 / 13:29
    Last year, when Talitha Cummins took leave from Weekend Sunrise to give birth, her colleagues urged a speedy return. This exchange could prove crucial in a looming court stoush between Seven West Media and Cummins, who claims she was unfairly dismissed nine weeks into her maternity…
  8. Drug overdose deaths rise in Victoria - Health
    03.28 / 13:01
    More than 470 Victorians died of a drug overdose in 2016, figures released by the Coroner's Court on Wednesday…
  9. Step forward in fight to rid Victorian hospitals of deadly superbugs - Health
    03.28 / 13:01
    Not only did Mark Hanson become a paraplegic at age 22, the nightmare continued when he caught a superbug in hospital…
  10. 'I totally condemn his actions' London attacker Khalid Masood's wife speaks out - Health
    03.28 / 13:01
    London: The wife of Khalid Masood says she is "saddened and shocked" by his attack on Westminster and "totally" condemns his …
  11. Eurofins pumping $5m into a UK biopharmaceutical testing site - Health
    Eurofins will expand its UK biopharmaceutical testing offering through a £4m ($5m) facility in Livingston, …
  12. Lilly: Tax reforms would release $150m to further support US manufacturing - Health
    Eli Lilly will invest $850m in its US operations this year but warns the country’s antiquated tax system leaves the firm at a competitive d…
  13. EMA looks to suspend 331 drugs due to ‘misrepresentation of study data’ at Indian CRO - Health
    Sandoz and Aurobindo are among drugmakers which will need to provide alternative bioequivalence data after the EMA recommended suspension of medicines tested by Micro Therapeutic Research …
  14. Alexion licenses mRNA delivery tech from Arbutus in potential $82.5m deal - Health
    Alexion Pharmaceuticals will use the LNP delivery licensed from Arbutus Biopharma as part of its messenger RNA therapeutics development partnership with Moderna…
  15. 'King George Square - the ashtray of the CBD': Petitioners want smoking ban - Health
    03.28 / 12:14
    King George Square is one of the few places left in the CBD where you can legally smoke. Petitioners want a ban…
  16. AFLW: Erin Phillips wins competition's inaugural best and fairest award - Health
    03.28 / 12:14
    Adelaide premiership co-captain Erin Phillips has capped her outstanding AFLW season by winning the best and fairest…
  17. Australia v UAE 2017: Socceroos fail to silence critics - Health
    03.28 / 12:14
    Australia's hopes of reaching a fourth consecutive World Cup are back on track after snapping their four-game winless streak but a disjointed victory over UAE did little to silence critics of their recent…
  18. Australia v UAE 2017: Coach Mahdi Ali steps down after loss to Socceroos - Health
    03.28 / 12:14
    United Arab Emirates coach Mahdi Ali announced his resignation immediately after losing to the Socceroos in…
  19. Dutch scientists discover key to ‘reverse ageing’ - Health
    03.28 / 12:10
    Studies carried out by Dutch scientists have resulted in a major breakthrough in the anti-ageing process which could ultimately…
  20. A light breakfast can cut some cancer drug doses, Dutch researchers say - Health
    03.28 / 12:10
    Although pharmaceutical firms recommend that many anti-cancer drugs should be taken on an empty stomach, researchers at Radboud teaching…