Re-opening injects hope and controversy

Shopping malls opened their doors almost two months after measures to fight the spread of C•VID -19 forced them to shutter. Although the re-opening raised hopes for an economic revival, it also sparked a debate between shopping mall investors and retail brands over costs. Rent and other costs have raised concerns for retailers pushing their relationships with mall owners to the breaking point. Some brands have discovered the power of e-commerce and believe they don’t have to carry the high financial burden that come with shopping malls at a time when street shops are regaining popularity.

The Shopping Mall Investors Association (AYD) is recommending owners and managers of malls skip May rents, in addition to other supports for retailers.

However, the recommendations were ignored by some who cited delayed credit payments.

Retail brands, on the other hand, are demanding options to exit their contracts without penalties. Already, some brands are turning their attention to street-level shops, which are less costly and pose less of a danger in terms of spreading the coronavirus.

Being equal doesn’t mean being fair when you are dealing with disadvantaged parties, says Huseyin Altas, the chairman of AYD. Every shopping mall is expected to review its own situation and act accordingly to find a solution. Altas, for instance, plans to skip rents in May and aims to support its tenants over the following months.

“I am personally against the decision to open the malls in May but if everyone does that we will follow the suit,” says Kelesoglu Holding Chairman Mustafa Keles, which owns five shopping malls. The holding would prefer to receive rent payments as soon as it reopens, he said, citing high debts of malls.

The recommendations doesn’t mean much if they are not followed by actions, Suleyman •rakcioglu, the chairman of •rka Holding, says. The holding has 200 shops in shopping malls. Malls are announcing that they will not ask for April rent payments. But •rakcioglu doubts their sincerity. “How can we trust them,” he says. “We don’t have a cake to share with them, just plain bread.”