Shops find more not necessarily better

The streets of Mong Kok, the most densely populated district in Hong Kong, teem with shoppers. But for retailers in the area, translating the heavy pedestrian traffic into profits can be a challenge.

Yung opened a 1,000 square foot shop on the seventh floor of an old building in Mong Kok's Nathan Road two years ago, but recently quit the busy district to rent a shop in the far less busy area of San Po Kong.

'In Mong Kok, I had to distribute many advertising flyers on the streets every day, hoping that potential shoppers would be attracted to my shop,' he said. 'It was hard work and very time-consuming.'

As a result, when his lease was close to expiring and his landlord asked for a rent increase of about 20 per cent, Yung decided to move to a smaller shop at Mikiki, a 210,000 sq ft mall in Sun Hung Kai Properties' Latitude project in San Po Kong, near the old airport. He is paying the same rent he was paying in Mong Kok.

'The shopping mall is not located in a prime district. But there has been an increase in the number of visitors coming into my shop. Visitor flow is also more stable, with office ladies calling during their lunch hour and housewives coming in during the afternoons,' he said.