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(The Register)   Not news these days: Struggling retailer pleads with UK landlord to slash rents. Fark: Apple   (theregister.com) divider line
    More: Interesting, Shopping mall, Retailing, Apple Store, UK retail landlords, following quarter, high-street turmoil, Sunday Times, retail outlets  
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222 clicks; posted to Business » on 03 Aug 2020 at 11:05 AM (7 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



16 Comments     (+0 »)
 
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2020-08-03 8:48:56 AM  
From Apple's recent earnings call:

"The Company posted quarterly revenue of $59.7 billion, an increase of 11 percent from the year-ago quarter, and quarterly earnings per diluted share of $2.58, up 18 percent. International sales accounted for 60 percent of the quarter's revenue."

They then announced a stock split and dumped a mountain of cash on shareholders.

Them crying poor after such stellar earnings reminds me of this old cartoon:
Fark user imageView Full Size
 
2020-08-03 11:08:30 AM  
I expect the landlords response to apple to be somewhere along the lines of EABOD
 
2020-08-03 11:22:39 AM  
Apple will get what they want. Hate them all you want, but when the Apple store closes, the mall is d-e-a-d. It's the new anchor store. No one cares about Macy's, Old Navy, and so on. The only store bringing crowds in on a regular basis is Apple.
 
2020-08-03 11:27:29 AM  
Yeah, clearly they are not hurting. but why pay more than you have to?

Dramatically lower foot traffic means rent prices are collapsing. Do what Cheesecake Factory did. Just stop paying. If Apple leaves the area, that'll crater foot traffic even more. It is a tactic used to lower rents. It's not dumb, it's smart. The landlord will most likely cave to some extent to keep the Apple store around, and help with the general rents of the other tenents.

Malls do it to. Back in the Sears would be the Rock of the mall. If they left, other stores could lower their lease amounts because they had it in the contracts that they were paying a premium with Sears there because of the heightened traffic.
 
2020-08-03 11:29:03 AM  

Opacity: Apple will get what they want. Hate them all you want, but when the Apple store closes, the mall is d-e-a-d. It's the new anchor store. No one cares about Macy's, Old Navy, and so on. The only store bringing crowds in on a regular basis is Apple.


Great minds think alike.
 
2020-08-03 11:45:48 AM  
sorry no sympathy or farks given to multinational corporations.
 
2020-08-03 11:46:20 AM  

AsparagusFTW: Yeah, clearly they are not hurting. but why pay more than you have to?

Dramatically lower foot traffic means rent prices are collapsing. Do what Cheesecake Factory did. Just stop paying. If Apple leaves the area, that'll crater foot traffic even more. It is a tactic used to lower rents. It's not dumb, it's smart. The landlord will most likely cave to some extent to keep the Apple store around, and help with the general rents of the other tenents.

Malls do it to. Back in the Sears would be the Rock of the mall. If they left, other stores could lower their lease amounts because they had it in the contracts that they were paying a premium with Sears there because of the heightened traffic.


yeah just stop paying them and then when the roof leaks and destroys $200K of merchandise and shuts your store down for a week while they fix it (assuming they can afford to) you'll have really shone them who's boss.
 
2020-08-03 11:49:21 AM  

tom baker's scarf: AsparagusFTW: Yeah, clearly they are not hurting. but why pay more than you have to?

Dramatically lower foot traffic means rent prices are collapsing. Do what Cheesecake Factory did. Just stop paying. If Apple leaves the area, that'll crater foot traffic even more. It is a tactic used to lower rents. It's not dumb, it's smart. The landlord will most likely cave to some extent to keep the Apple store around, and help with the general rents of the other tenents.

Malls do it to. Back in the Sears would be the Rock of the mall. If they left, other stores could lower their lease amounts because they had it in the contracts that they were paying a premium with Sears there because of the heightened traffic.

yeah just stop paying them and then when the roof leaks and destroys $200K of merchandise and shuts your store down for a week while they fix it (assuming they can afford to) you'll have really shone them who's boss.


It's a bargaining chip. If Apple is in the area, my bet is that it is already a well kept property. Either the landlord kicks them out for nonpayment and they lose their footprint, or they haggle over price and the foot traffic remains.
 
2020-08-03 12:10:39 PM  

tom baker's scarf: AsparagusFTW: Yeah, clearly they are not hurting. but why pay more than you have to?

Dramatically lower foot traffic means rent prices are collapsing. Do what Cheesecake Factory did. Just stop paying. If Apple leaves the area, that'll crater foot traffic even more. It is a tactic used to lower rents. It's not dumb, it's smart. The landlord will most likely cave to some extent to keep the Apple store around, and help with the general rents of the other tenents.

Malls do it to. Back in the Sears would be the Rock of the mall. If they left, other stores could lower their lease amounts because they had it in the contracts that they were paying a premium with Sears there because of the heightened traffic.

yeah just stop paying them and then when the roof leaks and destroys $200K of merchandise and shuts your store down for a week while they fix it (assuming they can afford to) you'll have really shone them who's boss.


More likely Apple looks around and decides it wants X locations within a certain radius of a city (say 2 in 5 miles). There are already one established, so they negotiate with that landlord to get the rent to rock bottom to stay. At the same time, they're looking at alternatives for other locations- other malls, stand alone stores, strip malls, etc. There's probably 25-50 viable locations in that radius. They'll look at the established stores in each of those, as well as any vacancies, and start negotiating with the landlords there, all playing the "well, we can come here, or we can go to your competitors location". In the end, the rent isn't paid by Apple, it's paid by the other merchants that want to be in the same vicinity as the Apple store. If the landlord doesn't keep the property maintained, they will be gone faster than you can blink, and the landlord has to pick the pieces up. It wouldn't be Apple fighting with them to maintain the property, it will be every other tenant that wants Apple to stay.

Being a retail landlord is not a fun business to be in right now.
 
2020-08-03 1:06:40 PM  
Other companies do this too, we just don't get Insta-Green headlines about it. I'm sure the usual paid shills and brainwashed losers will be totally shocked by this unprecedented behavior.
 
2020-08-03 1:07:10 PM  

AsparagusFTW: Yeah, clearly they are not hurting. but why pay more than you have to?

Dramatically lower foot traffic means rent prices are collapsing. Do what Cheesecake Factory did. Just stop paying. If Apple leaves the area, that'll crater foot traffic even more. It is a tactic used to lower rents. It's not dumb, it's smart. The landlord will most likely cave to some extent to keep the Apple store around, and help with the general rents of the other tenents.

Malls do it to. Back in the Sears would be the Rock of the mall. If they left, other stores could lower their lease amounts because they had it in the contracts that they were paying a premium with Sears there because of the heightened traffic.


But why does Apple have to be assholes about it? They can farking afford it, they just don't want to.

The mall owners have rent to pay too. Apple is making money hand over fist, and now they want to lord it over the property owners because why? Because they can? Because they feel they are being taken advantage of?

No wonder America and Americans are struggling. We've been led to believe greed is somehow holy. The property managers want more, because they know Apple can afford to pay more. But.Apple doesn't want to pay more, because they know they are the malls biggest draw, and fark you?

And round and round we go. That mall is going to eventually have to shut down. In the meantime, Tim Cook just became a few billion dollars richer. We have 50 million people who have lost their jobs in the last five months. Because the bcc rich are "smarter" than us. And some of y'all still see nothing wrong with this.
 
2020-08-03 1:08:49 PM  
Oops, didn't read the article. *shrug* Either way, Apple is being an asshole.
 
2020-08-03 1:19:15 PM  

BlackChickWhiteAccent: AsparagusFTW: Yeah, clearly they are not hurting. but why pay more than you have to?

Dramatically lower foot traffic means rent prices are collapsing. Do what Cheesecake Factory did. Just stop paying. If Apple leaves the area, that'll crater foot traffic even more. It is a tactic used to lower rents. It's not dumb, it's smart. The landlord will most likely cave to some extent to keep the Apple store around, and help with the general rents of the other tenents.

Malls do it to. Back in the Sears would be the Rock of the mall. If they left, other stores could lower their lease amounts because they had it in the contracts that they were paying a premium with Sears there because of the heightened traffic.

But why does Apple have to be assholes about it? They can farking afford it, they just don't want to.

The mall owners have rent to pay too. Apple is making money hand over fist, and now they want to lord it over the property owners because why? Because they can? Because they feel they are being taken advantage of?

No wonder America and Americans are struggling. We've been led to believe greed is somehow holy. The property managers want more, because they know Apple can afford to pay more. But.Apple doesn't want to pay more, because they know they are the malls biggest draw, and fark you?

And round and round we go. That mall is going to eventually have to shut down. In the meantime, Tim Cook just became a few billion dollars richer. We have 50 million people who have lost their jobs in the last five months. Because the bcc rich are "smarter" than us. And some of y'all still see nothing wrong with this.


The exact same reason when you're buying a pricey, yet commodity item, say a new air conditioner, you call a handful of AC contractors, have each give you an estimate, then, barring any irregularities (i.e. you heard one is known for botching jobs or can't commit to getting it done before the summer starts) you go with the cheapest. Next time you pay the highest amount for what is essentially an identical item let us know.

There is no reason for apple to pay $X / sq ft for rent, when they could pay 90% of that in the same location or in a comparable location a mile away. Sure, the actual decisions are more complex, but that's what it comes down to- physical locations, with very rare exceptions, are interchangeable commodities.
 
2020-08-03 1:52:44 PM  
Apple is still paying their employees and even their contract employees who cannot work.

They are also letting people who have their credit card slide on payments without charging interest, if they request it.

It's the companies punching down that piss me off.

Google, facing an advertising slump caused by the pandemic, has rescinded offers to several thousand people who had agreed to work at the company as temporary and contract workers.

Eat a bag of dicks, Google.
 
2020-08-03 2:58:28 PM  

BlackChickWhiteAccent: AsparagusFTW: Yeah, clearly they are not hurting. but why pay more than you have to?

Dramatically lower foot traffic means rent prices are collapsing. Do what Cheesecake Factory did. Just stop paying. If Apple leaves the area, that'll crater foot traffic even more. It is a tactic used to lower rents. It's not dumb, it's smart. The landlord will most likely cave to some extent to keep the Apple store around, and help with the general rents of the other tenents.

Malls do it to. Back in the Sears would be the Rock of the mall. If they left, other stores could lower their lease amounts because they had it in the contracts that they were paying a premium with Sears there because of the heightened traffic.

But why does Apple have to be assholes about it? They can farking afford it, they just don't want to.

The mall owners have rent to pay too. Apple is making money hand over fist, and now they want to lord it over the property owners because why? Because they can? Because they feel they are being taken advantage of?

No wonder America and Americans are struggling. We've been led to believe greed is somehow holy. The property managers want more, because they know Apple can afford to pay more. But.Apple doesn't want to pay more, because they know they are the malls biggest draw, and fark you?

And round and round we go. That mall is going to eventually have to shut down. In the meantime, Tim Cook just became a few billion dollars richer. We have 50 million people who have lost their jobs in the last five months. Because the bcc rich are "smarter" than us. And some of y'all still see nothing wrong with this.


Economics is based around the idea that we strive to be the most efficient with our resources. Paying more for rent is not an efficient use of a resource. They can then use that capital on other things.
 
2020-08-03 3:01:52 PM  

BlackChickWhiteAccent: AsparagusFTW: Yeah, clearly they are not hurting. but why pay more than you have to?

Dramatically lower foot traffic means rent prices are collapsing. Do what Cheesecake Factory did. Just stop paying. If Apple leaves the area, that'll crater foot traffic even more. It is a tactic used to lower rents. It's not dumb, it's smart. The landlord will most likely cave to some extent to keep the Apple store around, and help with the general rents of the other tenents.

Malls do it to. Back in the Sears would be the Rock of the mall. If they left, other stores could lower their lease amounts because they had it in the contracts that they were paying a premium with Sears there because of the heightened traffic.

But why does Apple have to be assholes about it? They can farking afford it, they just don't want to.

The mall owners have rent to pay too. Apple is making money hand over fist, and now they want to lord it over the property owners because why? Because they can? Because they feel they are being taken advantage of?

No wonder America and Americans are struggling. We've been led to believe greed is somehow holy. The property managers want more, because they know Apple can afford to pay more. But.Apple doesn't want to pay more, because they know they are the malls biggest draw, and fark you?

And round and round we go. That mall is going to eventually have to shut down. In the meantime, Tim Cook just became a few billion dollars richer. We have 50 million people who have lost their jobs in the last five months. Because the bcc rich are "smarter" than us. And some of y'all still see nothing wrong with this.


Do you even business, bro?

You never pay more just because you can - you pay what you need to get what you want.  If the landlord needs Apple to bring the foot traffic, the landlord better give Apple what it wants.  Naturally, that only holds as long as $value of Apple-driven traffic > $cost of catering to Apple, so there are limits.
 
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