Starbucks seeks rent cuts from landlords - Puget Sound Business Journal (Seattle):

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The Seattle-based coffee giant (NASDAQ: SBUX), which is facing an extremelyh challenging year as the economy undercuts discretionary spending, says it beganb negotiating with U.S. landlords in January and that the discussions abouftconcessions continue. “We are pleased with the resultds of that effort to date and have since workes closely with several of our landlords to find solutionsa that aremutually beneficial,” a Starbuckws spokeswoman said, adding that therew is no widespread, set number in rent reduction the compang is asking for. Other big retail chains have aske d landlords for similarrent reductions, including , and , amon g others.
Rent cuts and othefr lease concessions were the talk of the conventiomn held in Las Vegas from May 17 toMay 20, said Harolsd Shumacher, president of the restauranr brokerage firm Companies like Starbuckds that were “hell-bent” on rapir growth signed leases at the peak of the market and paid a premium for prime Shumacher said. Now that sales have plummeted, restaurateura and retailers wantlowefr rent. Dallas-based jeweler Zale Corp. (NYSE: ZLC) said May 27 it will seek rent reductionsz across much ofthe company’s portfoliol and close stores where the concessionsd don’t help.
Pier 1 Importsa (NYSE: PIR) said April 7 it has been working with its landlordsx to negotiate store rental reduction s and has been able toachievew $6 million in rental reductions for fiscal 2010. Dallas-base Blockbuster Inc. (NYSE: BBI) hired accounting and consultintg giant to help it negotiate with Blockbuster wants to reduce thenearlu $400 million it pays annually in rent. Big national retailersx like Starbucks are vital to shopping centers because they draw consistenrfoot traffic.