JD Sports boss calls for London rent reduction as footfall ‘battered’ by Covid-19

JD Sports boss Peter Cowgill said that although the retailer’s performance on reopening day was “at the upper end of expectations”, overall footfall in central London would take some time to recover. 

He said the impact of Brexit and Covid-19 travel restrictions delivered a double whammy that meant footfall in the capital had been “battered to death”.

Although Cowgill said JD Sports remains committed to its city centre locations in London, in the mid to long term rental prices would need to fall for those locations to continue to be viable for the sector more broadly.

“Market forces will make [those stores] more economical because clearly central London footfall has a large reliance on international travel and that will take time to come back.

“I don’t think stores in central London will disappear as a feature on the high street, but there may be some repricing.”

Despite this, JD Sports, which reported an uplift in full-year sales and profits, said it expects continued strong demand from its shoppers upon stores in England reopening. 

Cowgill attributed demand, which saw shoppers queuing outside its flagship stores ahead of a 6am opening on April 12, to its younger demographic of customers viewing shopping as a social activity as well as a chance to make purchases.

“You cannot transmit the same energy online as you can in a store,” he said, adding that he was confident stores would play a significant part in younger shoppers’ post-pandemic spending.

Cowgill added the retailer would recommence paying full rent to “over 75%” of its landlords now that stores have reopened.

The retailer is in ongoing negotiations with the remaining landlords about how to settle costs following JD Sports withholding rent during lockdown alongside many other non-essential retailers – a stance that has wrangled some landlords due to the retailer’s resilient financial performance.