GEORGE NEWS - Business owners who rent shop space at Thembalethu Square say they can not keep up with the high cost of rent and that the centre does not attract a lot of customers.
The square has seen a number of shops closing down - three of them in recent months - allegedly due to high rental.
Some shop owners are said to be paying over R30 000 per month and some complain they sometimes do not make enough to pay their employees because of the high rent.
Thembalethu Square opened in August 2012 to offer a convenient shopping location for the Thembalethu community, with lower prices and a variety of goods.
However, the complaining tenants (who wanted to remain anonymous) say they have found it too expensive to do business here.
Heloise Terblanche, a manager at the centre, told Idinga that the rent per square metre will vary from shop to shop, depending on the size of the shop, the position in the square (shop-front), the escalation, and the amount of years of the rental agreement.
"One must remember that complaining about rent is a daily part of any tenant's life. I have rented a business venue for many years and always felt that the rent was high."
Heloise attributed the outbreak of bird flu in the country to the closing down of two shops in the centre recently, not the rent.
"Bird flu has made it difficult for small business owners to get poultry supplies. Only large stores can get full supplies. This is unfortunate - no one planned the bird flu, it just happened."
Asked if the rent is affordable, Heloise said, "Absolutely. Obviously not all people can afford a shop, just like not all people can afford a house or a car.
"This is the main reason why the owners brought in stalls, to cater for the more informal sector.
"The rental for stalls is lower and this is where people normally rent when they start a new business. Lower expenses make it easier to start."
To address the matter of affordability, Heloise said they have an interview with each and every potential tenant that enquires about floor space and explain to them how the rental system works and details such as square metres and tenant mix.
Potential tenants are also informed that the business must trade in a product for which there is a demand.
"You have to make sure that your product is needed in Thembalethu. Not in town, but here. Sometimes people do have an idea but if the community does not like it, or does not buy it, it cannot work.
"So we really do spend time with clients to make sure that they understand the market before they start their shop or business."
A business selling water also closed down. To this Heloise said, "Unfortunately sometimes certain shops do not work in certain markets."
However, a business owner who sells fast food said apart from the skyrocketing electricity and water bills, another problem is the low number of customers attracted to the centre.
"Management needs to come up with marketing strategies on a weekly basis that can attract customers.
"And they should not allow more than two businesses that sell the same product to do business at the square. Too much competition destroys the businesses."
To this Heloise said, "Two take-aways cannot serve the whole Thembalethu. Some of the products will be the same, others will vary. Competition brings better services to our clients and a huger variety.
"We all differ and want different items and food." Each shop has its own electricity meter and readings are done monthly according to municipal rates, said Heloise.
ARTICLE: ZOLANI SINXO, IDINGA EDITOR | GEORGE HERALD JOURNALIS
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