Department stores offer short-term leases for spaces as small as 2 pings (2014/01/21)
The high cost of commercial space is leading many department stores to offer short-term rentals for stands as small as 2 pings. Some of the micro-businesses that fill these spaces are proving to be a huge hit among shoppers.
This person works quickly to replenish stocks of kimchi. Sales reach as much as 250 pieces a day.
A neighbor is doing equally well. By selling meat, its weekend revenues approach up to NT$100,000.
In just a small space, these businesses earn tens of millions of NT dollars in revenues each year. They even beat cosmetic counters to be among the top retailers in the entire department store.
Ruan Chi-wei Stall Operator Sales are very good, and because the space is so small we only need a staff of three or four people. In terms of per ping efficiency, it is much better than us operating our own outlet.
This department store is looking to fill its empty space with small businesses, some on short-term contracts.
Each department store has a different strategy. Rather than collecting rent, this one takes a commission of between 20 and 25 percent of revenues. Products must be popular, novel, new or on sale.
“Sometimes they are cheaper than other retail counters and sometimes they even have better stock.”
The spaces that these short-term tenants typically seek out are in high traffic areas near escalators, doorways or toilets. They might be small, but many are doing big business.
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