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The Forum > General Discussion > Grab the Money?

Grab the Money?

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Westfield Chermside (Brisbane) Shopping Centre management have just announced that they will be implementing a "Pay to Park" system around their shopping complex.

The reaction has been tumultous, with many shop lessees protesting that they will lose considerable business as a result of this idiotic move, which comes at a time when we are all expecting a severe downturn in spending due to the "inevitable" Recession.

This has been slated by the general public and the lessees as yet another "grab for cash" by an already well-heeled business group, and many people are saying that they simply will NOT pay to shop there!

The Shopping Centre Management stated that the move was an effort to stop people parking there all day!.....I would have thought that would have been an indication of the success of the shopping complex and ongoing shopping spending by anyone who is prepared to park there all day.

The Shopping Centre Management stated that they have considered another option,....of making the first couple of hours free, then charging an hourly fee of around $6 for anything over that.

I have never had any problem finding a parking spot in the Shopping Complex, but I am prepared to drive up to the rooftop parking areas, where there are always adequate parks, but involve a walk of a few metres to the escalator.

I feel that any move to impose parking fees on members of the public will only drive away business, which at this time is facing the possibility of hard times ahead!

It certainly appears that there is a move afoot to convert all parking areas around the Brisbane area into "User Pays" facilities. It is virtually impossible to get a parking space at the P.A. Hospital without having to pay through the nose for the privilege of "being sick"

Where has the balance between commonsense and sheer greed for money gone?
Posted by Cuphandle, Monday, 8 December 2008 7:52:59 AM
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Westfield always had a bad reputation in suburban Sydney.

Always with the hungering for more and more money from tenants.

One coffee shop at our local Westfield wouldnt pay the vast increase in rent that Westfield wanted from them...so Westfield gave the shop owner 24 hours ONLY to get out.

In that time he had to get all of the power and water cut off, all of the coffee machine and microwaves out and all of his staff sacked.

Every cent that goes through shop cash registers, Westfield skims a percentage off. Their computers monitor the lot.
Not only do tenants pay the shop rent but Westfield also syphons a percentage off their tils.

A Westfield staff member once told me, in disgust, that management is constantly measuring up, with measuring tapes, all shopping traffic areas... to see how many stalls they can squeeze in.
If they had any heart they would respect the recession and lower rents.
Posted by Gibo, Monday, 8 December 2008 9:56:52 AM
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I don't know about a backwater like Brisbane but in Sydney it is common to pay for parking in shopping centres after a few hours. The aim is to stop people using the car park for purposes other than a shopping stop. For example people who work in the area may park all day whilst at work. Or people might park there and then use public transport to go to work. If these people are causing genuine shoppers to stay away because of lack of or difficult of parking then the centre management ought to do something about it.
Posted by mhaze, Monday, 8 December 2008 10:03:47 AM
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That's easily solved mhaze.

In my neck of the woods, council rangers also police car parks in shopping complexes.

If car owners breach the time limitations, the ranger fines them and the revenue goes to the council. Developers could arrange a similar strategy to prosecute inconsiderate users of car parks.

Why should those who abide by the parking limits, have to pay to park at shopping complexes? I'd be changing supermarkets if this was the case.
Posted by dickie, Monday, 8 December 2008 11:03:54 AM
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I simply wouldn't go there.
Westfield is making a bomb anyway. Shopping centres are designed to make a profit at 60% occupancy, their small traders leases are an exercise in extortion. Not only are rents obscene but they get a cut (%)of the Small/Business take and the other imposts like centre promos etc are iniquitous. Mind you the majors get comparatively rediculously cheap rents and none of the imposts. A case of the abuse of power.
Westfield owners are also among those who were allegedly sprung with secret tax-free bank accounts in Lichtenstein and now the ATO is after them.
Add to that SE Queensland has the most number of Shopping centres per capita in the world, including Sweden who is under snow 6 months of the year.
Where there is a way to make a buck someone will do itregardless of it being reasonable or not.
Posted by examinator, Tuesday, 9 December 2008 4:46:04 PM
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Well as a tenent in two centres, niether of the Westfield, I can teel you that the managers can drive you made at times.

Just to clarify one point, the % rent that you speak about only applies once your business has reached a pre-determined turnover, until that point you only pay the base rent plus all the extras.

Most leases these days have a standard 5% annual increase. My view is that the managres role is to attract shoppers to the centre and provide them with a pleasent shopping experience. It is then up to the retailer to extract their share of the spoils.

Furthermore, I feel that if the customer number drops below the previous years throughput, then the managers should not be allowed to increase rents as they must take the responsibillity for not attracting the shoppers, for what ever reason!

As for parking, you have no idea how frustrating it is to watch someone blatently park in the car park then go off to work or what ever. Remember, Chermiside also has the bus terminal so many would be parking and catching the bus.

I think fine the purpertrators heavily but leave the real shoppers to be. That would be the answer.
Posted by rehctub, Wednesday, 10 December 2008 8:38:27 PM
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