Retailers in New South Wales (NSW) will have an extra reason to celebrate this Christmas after the Australian Retailers Association (ARA) secured a major win for retail tenancy in the State.
The ARA and major industry leaders the Pharmacy Guild of Australia (PGA), along with other industry bodies, are behind the development of the landmark Retail Industry Code of Practice – The Reporting of Sales and Occupancy Costs (the Code).
An outcome of the 2016 review of the Retail Leases Act 1994 (NSW), the Code marks a major power shift back to retailers, as shopping centre landlords will now have an obligation to provide benchmark information to their tenants where retailers provide sales data.
Russell Zimmerman, Executive Director of the ARA, said that from 1 January 2019, the Code will ensure that retailers will have the ability to access information on sales reporting and occupancy costs, improving transparency and accountability.
"This landmark achievement for retailers in NSW will provide vital information to tenants in shopping centres, allowing them to better-understand the real value of their leases," Mr Zimmerman said.
"The implementation of this Code will help to give some power back to retail tenants and give them some added certainty when it comes to negotiating with their landlords."
The Code has also been agreed to by the Shopping Centre Council of Australia (SCCA) and will be implemented next year. Shopping centres will have a six-month transitional period to 1 July 2019 to sign-up and implement the Code.
Mr Zimmerman said that the reform could not have been possible without the support of the PGA, along with the Deputy Premier of NSW, Hon John Barilaro, who championed the reforms.
"The ARA is grateful to our friends and partners at the PGA for their continued advocacy, not only on behalf of their own members, but for the benefit of the entire industry," Mr Zimmerman said.
"We will be working to implement this Code nationally over the medium-term, and with rising costs, increasing competition and patchy sales growth creating some headwinds for retailers, big wins like this can make a substantial difference."
To view a copy of the Code, please click here.
