Tech provides means of convenience stores agreeing turnover-based rents with landlords

Turnover based rentscould become a reality for independent convenience stores according to finance tech firm Finboot.

The model, which could provide a lifeline to Covid-hit city and town centre convenience stores, follows on from New Look reaching a similar turnover-based rents deal with more than 400 of its shop landlords via a company voluntary arrangement. Under the agreement rents are tied to each location’s sales.

Finboot chairman Nish Kotecha said similar agreements for independent stores would be dependent on reliable data. “the revenue figures that the rent is calculated on has to be correct and not susceptible to human error, negligence or worse. Unquestionable trust needs to exist between the landlord and the tenant, and blockchain is the way to achieve this,” he explained.

He argued the firm’s MARCO software provides exactly this by plugging into the existing sales technology used in shops. Challenged on whether the system, starting at around £450 was a realistic investment for small stores, the founder Kotecha told Better Retailing: “Smaller shops may assume that adopting a technology such as blockchain is not affordable, but then neither is paying expensive rent when turnover is low.”