Virtually every retailer has one, just about every retailers hates them but wants another one and most retailers know very little about them. What is it? A real estate lease of course!
A retail lease is the fundamental contract that underpins a retailer’s entire revenue. There can be tens, hundreds or even thousands, and without them there is no business, no sales and no profit.
It is also true that in most cases the annual cost of this contract is the second largest expense in a retailer’s Gross Profit, behind wages – equating to as much as 20% of total sales.
