Mycube is unique kind of business operations. It’s a form of subletting retail space in high-end shopping centers and malls at a very small scale to small entrepreneurs. In a sense, it some kind of a micro department store.
Laws and regulations
The operations of a business like myCube or any retail business for that matter are covered by various retail laws and regulations in Canada (PriceWaterhouseCoopers). Canada has many laws that regulate retail business operations. These regulations are implemented by both the government itself (Canada) and by a regulatory body with all retail businesses as members (Retail Council of Canada). The laws and regulations concern mainly consumer protection, orderly and lawful operations, and fair competition. Products sold in the retail business may require licenses and corresponding taxes. Proper labeling of products seems to be an important concern of the laws as a way to protect consumers. Not only consumers are being protected by the laws but also employees and other workers in the retail trade. The retail regulations in Canada are not at all formidable. They apply to all retail operations. It is a fair playing field. A business like myCube would have to comply anyway with regulations of an industry in any country.
All regulatory requirements concerning the retail operations are usually taken care of a business like myCube. This would include the licenses to sell as differentiated from licenses to manufacture which is a concern of the lessee. Insurance of the retail space is also a matter to be complied with by a business like myCube. However, as to which party would have ownership of the inventory and which would take care of its insurance as may be required by law or the property policies is a matter that still needs to be found out.
Relief for the customer
On the part of an entrepreneur leasing space, myCube’s taking care of all the retail and leasing requirements and compliance with the law is already a great advantage. A great part of the retail work requirements has been taken care of. In addition, myCube can just serve as a distribution channel for a small business. As myCube’s comparative information sheet shows, a small business could make itself available in high-end malls at a fraction of the cost of having one’s own outlet or space at a department store and without bothering with all the regulations and paper work of leasing such a space. (myCube)
A small business is relieved of many government and lessor regulatory requirements. For instance, at market stalls, a business would be required to have its own public liability insurance among other things. At bigger shopping centres, a business would be required to have a bank guarantee, a personal guarantee, a bond, a few years minimum contract, and fit out regulations to be approved by a council. (myCube)
Small—especially start-up businesses—may not be able to afford nor comply with all of these regulatory requirements. A retail concept like myCube would certainly be a very attractive option for the small business as it would take care of addressing of these issues. Although the relative cost of leasing space at myCube may be proportionately higher—myCube of course adds some margin to the actual cost of leasing mall space, it is still lower than the cash-out needed for small business to lease a much bigger minimum space. Thus, with lower costs, a business can earn more profits. Also, a small business would enjoy some exposure on upscale malls (if that is its target market) that it would not otherwise have since cannot afford to. So, myCube and similar retail channels can be very attractive for small businesses.
References
Canada Government (n.d.). Retail business guide. Canada BusinessOntario. Retrieved 20 Jan 2013 from http://www.cbo-eco.ca/en/index.cfm/guides/retail-business-info-guide/.
myCube (2010). myCube information pack for prospective tenants. myCube. Retrieved 20 Jan 2013 http://www.mycubeshop.com.au/Leasing_opportunities_files/Information%20Pack%20for%20prospective%20tenants.pdf.
PriceWaterhouseCoopers (2007). Retailing in Canada.PWC. Retrieved 20 Jan 2013 from https://www.pwc.com/en_CA/ca/retail-consumer/publications/retailing-in-canada-0407-en.pdf.
Retail Council of Canada (2013). RCC: The voice of retail. Retail Council of Canada. Retrieved 20 Jan 2013 from http://www.retailcouncil.org/.
