Temporary Stores Thrive as Others Fade
Temporary store in Tsim Sha Tsui. Photo by K.Y. Cheng
There’s no mistaking the scene on Jordan Road: people are hunting for bargains. In the hollowed-out remains of an old clothing store, the faded words “In Fashion” still visible above the entrance, a motley crowd looks through boxes of discount Crocs sandals and kitschy plastic jewellery. In the corner, a man hawks vacuum-sealed plastic containers, his amplified voice competing for attention with the shop’s other employees, whose sales pitches are also broadcast through loudspeakers.
The miniature bazaar, which has no name, is the creation of Peter Hui, a 32-year-old entrepreneur who moved to Hong Kong from Fujian in 1996. A little over a decade ago, during the Asian financial crisis, he was working as a door-to-door watch salesman when he noticed temporary variety stores being opened in vacant retail spaces.
“The economy was quite bad and businesses were not very profitable, but we saw some people with these outlet stores and thought, ah yes, that’s a good concept,” said Hui. “Selling things for cheaper, no renovation fees, low expenses and temporary leases. That’s all good for making a profit.”
Hui and his company, Price Killer Shop Group, now own 10 temporary stores around the city. In a way, he embodies Hong Kong’s entrepreneurial energy, which manages to find expression even in the midst of an economic downturn. Even as the recession deepens and consumers dig ever deeper into their pockets, there is money to be made, and discount temporary stores like Hui’s are becoming more and more common.
Until now, the city’s retail market seemed to be doing well in spite of the ongoing financial crisis. Sales grew in November, December and January, but recently-unveiled governments statistics show a precipitous drop in February, with sales down 12.6 percent from 2008. Even considering the “New Year effect”—last year’s Lunar New Year fell in February, boosting retail sales in that month—retail is still down by a significant amount.
