Atilla
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Most people on this site will probably be already aware but I'll state the obvious anyway. 
The high street sales this year seems to be very brisk with lots of foot soldiers looking for bargains BUT those sales are based on heavy discounting -> small profits.
At the end of the day margins are slight and pressures are bearing down on business costs...
One of my clients on Great Portland Street moved out early this year (2008) because the lease extension he was trying to negotiate was simply way over the top whilst his client like M&S was asking for bigger discounts.
Their action was to drop M&S a big customer - no point in producing at silly margins and secondly, relocate to the suburbs away from expensive rents in the centre.
This raises the question, where does M&S get their produce made, at what quality? China & India perhaps? Secondly, has the vacant property re-let at the asking price? No! It has not meaning the landlord was totally behind the game and unrealistic in his valuation in the current climate.
Just one small example but in aggregate even REITS are under pressure to renogtiate leases and terms otherwise their clients will go to the wall further compounding their occupancy rates. British Land and Land Securities look vulnerable too. (Bigger they are the harder they fall - how long will they stand if this recession is a prelonged depression?)
The ripple effect through out the economy is just starting now and the extent of those Tsunami like waves will only grow not dissipate. We'll have to wait for some of these earnings to be announced in the months ahead to see how good the sales period has really been. :-0
The high street sales this year seems to be very brisk with lots of foot soldiers looking for bargains BUT those sales are based on heavy discounting -> small profits.
At the end of the day margins are slight and pressures are bearing down on business costs...
One of my clients on Great Portland Street moved out early this year (2008) because the lease extension he was trying to negotiate was simply way over the top whilst his client like M&S was asking for bigger discounts.
Their action was to drop M&S a big customer - no point in producing at silly margins and secondly, relocate to the suburbs away from expensive rents in the centre.
This raises the question, where does M&S get their produce made, at what quality? China & India perhaps? Secondly, has the vacant property re-let at the asking price? No! It has not meaning the landlord was totally behind the game and unrealistic in his valuation in the current climate.
Just one small example but in aggregate even REITS are under pressure to renogtiate leases and terms otherwise their clients will go to the wall further compounding their occupancy rates. British Land and Land Securities look vulnerable too. (Bigger they are the harder they fall - how long will they stand if this recession is a prelonged depression?)
The ripple effect through out the economy is just starting now and the extent of those Tsunami like waves will only grow not dissipate. We'll have to wait for some of these earnings to be announced in the months ahead to see how good the sales period has really been.
:-0 
