House of Fraser aims to slash store rents amidst tough trading conditions

London - British department store group House of Fraser is aiming to reduce rents on a number of stores following difficult trading conditions. The retailer has confirmed it reached out to some of its landlords, asking their "support" for HoF's ongoing transformation scheme.

The request, first reported by Sky News, implies that House of Fraser is still struggling after a tough Christmas season. Competitor Debenhams previously released a profit warning last week, after disappointing Christmas trading results, as retailers faced a volatile market.

House of Fraser, which is set to post its Christmas trading results next week, previously announced it aimed to close stores in Buckinghamshire, Aylesbury, and Leicester last year as part of its five-year turnaround plan. Other areas HoF aims to address in its plan include streamlining its womenswear offering, launching in-store champagne bars and investing 25 million pounds in its e-commerce.

"News of House of Fraser's financial troubles exposes another retailer who has failed to adapt to the relentless pace of structural change sweeping through the industry," commented Richard Lim, Chief Executive, Retail Economics.

"The unforgiving shift towards online spending against a backdrop of inflexible leases, upward only rent reviews and spiralling operating costs has put traditional retail business models under intense pressure. Put simply, many retailers are operating with business models that are no longer fit for purpose in today’s digitally-driven world."

Photo: Courtesy of House of Fraser