Small shops at risk due to the Link's deals with big chains, says watchdog
Consumer Council notes Link's role in plight of small operators and rise of supermarket chains
In a city where land is so scarce, the Link Reit's rental deals favour supermarket chains at the expense of independent competitors, the Consumer Council has warned.
ParknShop and Wellcome have a combined market share exceeding 60 per cent of the food retail sector, the watchdog estimated in a report released yesterday. In many districts, there is more than one supermarket chain store within a walking distance of 15 minutes.
By contrast, Census and Statistics Department figures suggest the number of small supermarket operators with only one outlet plunged by 16 per cent to 69 between 1996 and 2011. Those outlets also took up very little retail space - less than 1 per cent of the total sector.
Supermarkets enjoy a substantial price advantage over small operators as they can bundle rental deals with the Link, which has a portfolio of 11 million square feet of retail space. This is a factor in their current prominence, the report said.
Chan Po-ying of Link Watch said the real estate investment trust sacrifices small shops for big chains. This year, the Link evicted 50 tenants from a wet market in Yau Ma Tei to make room for a supermarket.
"The proportion of the Link's mall space occupied by chains - including retail and catering - has risen from half to 70 per cent over the past five years," she said.