POP UPS LEAVE SHOPS DEFLATED
POP-UP shops in shopping centres are cherry-picking customers during peak times, the federal small business ombudsman has warned.
Temporary stalls selling baked goods in front of bakeries and books adjacent to bookshops are among examples of pop-up shops affecting the viability of permanent traders at shopping centres, according to the ombudsman’s office.
In a submission to the Australian Competition and Consumer Commission (ACCC), it also cites examples of make-up stands in front of pharmacies, and stalls selling calendars and gift cards in front of newsagencies in the run up to Christmas.
The ACCC has proposed giving the nod for shopping centres to continue with the Casual Mall Licensing Code of Practice, which governs shortterm retail leases such as those for pop-up shops. But the commission is consulting further before making a final decisions.
The code — championed by industry body the Shopping Centre Council of Australia — has drawn criticism from a wide range of groups including the Franchise Council of Australia.
They claim the leases, which can run as long as 180 days but have an average life of 12 days, undermine long-term tenants.
A number of groups said that when permanent tenants complained about short-term rivals cashing in, they were fobbed off by centres, who cited the code.
Australian Small Business and Family Enterprise Ombudsman Kate Carnell said while the code theoretically provided transparency and certainty, the reality was that it was used to dismiss legitimate complaints.
“The competition is only for a short period but can affect the long-term viability of a retail lessee,” she said.
Ms Carnell said long-term tenants felt undervalued by the insensitive placement of competing businesses within shopping centres.
The Franchise Council of Australia said in its submission that it shared concerns about pop-up shops with the Pharmacy Guild of Australia and the Australian Retailers Association.