Bill Stefaniak decides the market is rubbish

Only they frequently waive the requirement for big tennants they can’t afford to lose (cinemas, supermarkets major chains).

One has some sympathy for the small business owner. Westfield is an easy target too. They play it pretty hard (but straight). However, no doubt the small bsuiness owner entered into a contract with Westfield (via a lease). Leases contain all the agreenment conditions. This fit out should not have come as a surprise to the small business owner in question and should have been factored into operating revenues/income over the lease period. It is standard business practice at shopping centres to require businesses to invest in a fit out.

Large shopping centre complexes (such as Westfield) do in effect hold a pseudo-monopoly over retail within the geographic region of its location.

Because of their size and obviously their volume of different types of retail (clothes, food, footwear, sporting, etc) they naturally attract the largest number of foot traffic and as such can charge what ever they want.

However like all markets, if they charge way too much they will end up with empty shops and will reduce their prices accordingly. If their analysis suggests that they can charge more and still keep floor space rented of course they will do it. They’re a business and businesses are ultimately interested in one thing one – money.

If anyone else is having trouble finding John Humphreys – for his views on pavlovas and free market economics – then you’re bound to find him here:

“The Liberal Democratic Party has booked a booth at Summernats 2007, to be held in Canberra from 4-7 January 2007. The main purpose of the presence at Summernats will be to launch a number of pro-motorist policies, as well as sign up new members.”

its not an example of a free market at work – its an example of abuse of monopoly power.

only a naive would say that the various rules and regulations and bizarre deals surrounding commercial property resembled in any way a free market.

Hi John, I’ve been meaning to ask Peter B what’s been happening with Liberal Democrats recently. I hear Duncan S will be back in town soon as well. Good time to get the ball rolling again I think.

I’m in too, John. It’s about time we got the Party together in a meaningful way. I’ll take Foreign Affairs if that’s OK.
And we can actually fill a front bench from the ranks of RA; just for starters:
Attorney-Gen: johnboy.
Environment & Heritage: Thumper.
Media & Comms: Kerces.
Education: nyssa76.
Deputy Education: Crazy Chester.
Transport: VYBerlina.
Tax & Finance: Maelinar.
Indigenous Affairs: bonfire.
Health: Che.
Arts & Recreation: Big Al.
Police & Security: vg
– and so on.

Hi john, it’s good to have you back.

I’m saddened you group me with stefaniak’s infantile economic views.

My issue is that for the trans-national mall-chain westfield the idea of economy will always be skewed against a local business.

Hungry Jacks offers certainty across hundreds of locations and can, as such, get concessions on their rent, in addition the per/store cost of designing a refit is vastly lower than what an owner operator will face.

But I hope you noted my derision for stefaniak’s bollocks arguments.

Back in town or just visiting? Mail me if you’re thinking of getting the liberal democrats back together.

Cheers

Oops, a double portion, sorry!

Clone towns are one of the results of the alleged “free” market (that’s where the big guys are free to squeeze/bust the little guys). This consequence has been around for a while (eg see here: http://news.bbc.co.uk/1/hi/business/3582704.stm). Show your appreciation for your local takeaway’s hamburgers and chippies and the local milk bar coffee house with your actual custom, folks.