Shop owners and malls are clashing over rent prices

The tension between shop owners and malls over the rise in rent, which had eased with discounts negotiated in recent months, is starting to get worse again.

The bills of September arrived with the total value of the IGP-M, a reference index for the readjustment of lease contracts, which accumulates an increase of almost 25%, according to the president of Ablos (Brazilian Association of Satellite Shopkeepers), Mauro Francis Tavares.

Last year, when the pandemic forced malls to close, shop owners ran out of revenue and went into a tug war match with landlords to avoid having to pay total rent. They managed to get some discount, but the sector is trying to reinstate the readjustments with the return of activities.

According to Tavares, the IGP-M affects stores' returns, which remain fragile after the pandemic and may enter a new wave of going out of business. After the frustrating sales result of Semana do Brasil, the September discount season, the scenario depends on Black Friday sales, in November, and at Christmas.