China malls waive rent amid fierce competition


  • Business Premium
  • Wednesday, 03 Jul 2013

epa03762393 Sculptures of cows are displayed inside a shopping mall in Beijing, China, 27 June 2013. Asian markets calmed as concerns about China's credit crunch eased after the Central Bank promised to allay concerns of a liquidity squeeze that drove interbank lending rates to double digits and stock markets to plunge earlier in the week. EPA/HOW HWEE YOUNG

SHANGHAI: Chinese landlords are forgoing rent and paying to outfit stores for mass-market fashion brands including Zara and H&M, a bid to blunt the impact of a boom in shopping-mall construction that threatens to push up vacancies.

Preferential leasing terms were reserved until recently for luxury brands such as Louis Vuitton and Gucci, which are coveted because they bring shoppers into malls.

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