Westfield tenants fury at service charge hike
Westfield, the new London shopping mall, has enraged retailers by hiking up their service charges just days after the £1.6bn centre opened for business.
Sir Philip Green’s Arcadia Group and the New Look fashion chain are among the stores preparing to battle against Westfield London’s owners over the proposed increases of up to 75 per cent in the expected charge, which covers costs from cleaning to marketing.
Retailers say that they were given a guide for the annual cost of about £8 per sq ft, but are now being asked to pay almost £14, making it one of the most expensive shopping centre charges in the UK. Not all stores have received notification of a change.
The higher than expected charge could push up costs for some retailers by more than £500,000 a year. The centre opened to huge crowds last Thursday.
Financial Times, The Times