Mike Ashley to demand turnover rents across retail empire

Ashley has put pressure on landlords to agree to turnover rents, where up to 15% of the total charge payable is linked to store revenue, according to The Sunday Times.

Turnover rents allow for retailers to share both the risk and potential reward of operating stores with landlords. The arrangement has become increasingly popular with a number of retail chains in the face of dwindling high street footfall this year.

Across his portfolio – which includes Sports Direct, upmarket Flannels, House of Fraser and numerous brands such as Jack Wills – Ashley has more than 700 stores in the UK.

The retail tycoon has been very vocal in the past about what he has called “greedy” landlords, and said they should do more to save the high street.

A number of retail businesses have looked to renegotiate to turnover rents with landlords this year after brutal high street trading conditions have taken their toll.

In September, Swedish fashion giant H&M butted heads with landlords over turnover-based rents. A number of high street staples including Topshop owner Arcadia and Monsoon Accessorize have also used company voluntary arrangements this year to slash rents and shutter stores.