Asian venture finds opening months hard going

China Town has been open since October. Photo / Steven McNicholl

Barely five months after China Town opened, tenants at the Asian mall in East Tamaki are threatening to walk out because of poor business.

A large corner furniture shop shut its doors this month after failing to meet its rental payments, and the Herald understands at least five others have also moved out since Christmas.

A tenant, who is planning to close her fashion boutique stall next month, said she knew of at least 20 others planning to do the same.

A quarter of the 120 stalls were on a six-month lease, and most would not be renewing their agreements when they came up, she said.

"We go through days and days sometimes without even making a single sale. The business is so poor and it is just impossible to survive," she said.

China Town opened for business in Ti Rakau Drive last October amid much fanfare, including a ceremony attended by two mayors, MPs and local politicians accompanied by lion dancers and firecrackers.

Retailers said business had been on a downward spiral since the New Year, and many were struggling to make even enough to cover their rent.

China Town wanted to introduce the Chinese night market concept here, but last week announced it would scrap its Thursday late-night shopping and open until 9pm only on Fridays and Saturdays.

The centre's management is also imposing penalties on shops that close early because of the lack of business activity.

"Our recent public survey has highlighted the disappointment that the public feels when they come to China Town and find our shops closed," an internal memo to tenants said. "Shops that open 15 minutes later than 10am or close prior to the closing hour will be fined $50.

"Please accept this new requirement is for the health and success of China Town."

Tenant Yong Rui Pong, who operates a Tibetan massage shop, felt the lack of an anchor tenant or supermarket was one of the reasons the centre was not bringing in the crowds.

"People who come here for Chinese New Year shopping were expecting shops to be selling snacks and fresh produce, but there's nothing here for them and they go away disappointed," Mr Pong said.

Corrine Tan, a staff member at clothing outlet Mr Tees, said she was worried a walkout would make the centre even less attractive for shoppers. Local resident Gwenda Fry said she has stopped shopping at China Town because she thought the mall was "just a collection of $2 shops".

However, chief executive Jack Ren said plans were under way to turn things around - including using the vacant furniture shop for an Asian supermarket and bringing in exclusive products direct from a China-based wholesaler.

Mr Ren said he did not know of any China Town business operators who were unhappy or who wanted to walk out of their lease agreements.

"The first six months will always be the most difficult for any business, and the current economic situation has made it even harder for every retailer in New Zealand," he said.

"China Town was set up mainly to share Chinese cultural experiences with Kiwis, and in that respect I think we have been very successful."

Mr Ren said the centre was still popular at weekends, when free Chinese cultural and arts performances were on offer. He said nearly 80 per cent of visitors were non-Chinese.

THE NUMBERS

5 months since opening
120 stalls in total
30 on six-month lease will not renew
5 already gone
80 per cent of visitors are non-Chinese