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Simon Property Group is suing Gap as the fashion retailer failed to pay more than US$ 65.9 million in rent and other charges due during the coronavirus pandemic.

In late April, Gap stopped paying rent on its temporarily shuttered stores, amounting to about US$ 115 million in monthly expenses in North America.

Simon malls have 412 Gap stores, including Banana Republic and Old Navy. This makes Gap Simon’s biggest in-line tenant at its malls in terms of rent.

It said then “that strong legal grounds exist to support our claim that we are not obligated to pay rent for the stores that have been closed.”

Simon began reopening malls last month as states started easing restrictions on businesses in an effort to kickstart economic growth.

David Simon, Chief Executive Officer,Simon has made it clear he expects rent to be paid, despite any temporary store closures.

“The bottom line is, we do have a contract and we do expect to get paid,” he told analysts during a May 11 earnings conference call.

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Market & Major Drivers

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“Retail’s ever-changing demands and varied preferences help me to justify my position as an ethical and process oriented leader who can experiment and take calculated risks,” he says.

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“With ever-increasing warehouses and distribution centres, there has been a spike in demand for skilled workers. For example, in the US, it is estimated that warehouses and distribution centres will need more than 5 lakh workers by 2020. But in a country which is already labour strapped and with not enough skilled workers, robots are proving to be a better alternative to fill the gap. Delivery services, food retailers etc. are all experimenting with robots, drones and self-driving cars in order to reduce on their delivery time as well as high costs,” he adds.

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We can see 3 major changes in retail sector in 2020:

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To build credibility, the brand has added a unique tracer in the fabric thus ensuring source credibility. Tracer is a method of identifying the journey of the fi nal garment and its origin from fibre stage. This is a globally accepted method and gives visibility of source.9BLABELB Label is driven by the potential that sustainable fashion holds for a greener future. As a brand, it strives to be sustainable at their core and to support this it works with one of the world’s most durable and eco-friendly natural fibres – Industrial Hemp.

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