Golden spot a death sentence for shops near Expo Park
- Source: Global Times
- [10:35 June 12 2010]
- Comments
Shops struggle to attract trade Friday on Shangnan Road near the Expo Park. The proprietors face crippling overheads and meager incomes. Photo: Shen Weihuang
By Shen Weihuang
Shops along Shangnan Road outside the Expo Park leading to the China Pavilion are facing closure after just one month of business as their owners struggle to cope with unmanageable rents and disappointing passing trade.
Most of the shops have invested over 1 million yuan ($146,458) in décor and the six months' rent upfront demanded by their contracts. However, what they have been getting back is just 100 yuan ($15) profit per day or even worse.
"We think it would be better to jump off the building," joked a manager, surnamed Wang, who runs a jade store. "We lose almost 3,000 yuan ($439) per day, that's 100,000 yuan ($14,646) per month. Add this to the large amount we have already invested, and we're finished."
Before the Expo, buildings along both sides of Shangnan Road were renovated, costing millions of yuan and relocating nearly one hundred households. The Expo Coordination Bureau then authorized a company to rent out all the shops along the road.
"The company originally promised us that most of the visitors to the Expo will pass along this road, but so far there's been barely anyone," Wang added.
The shops along the road are mostly selling high-end products like watches and diamonds or gifts such as tea and healthcare products.
"We also want to close, but we have signed a five-year contract with the landlord, paying 50,000 yuan ($7,323) per month," a tea shop manager surnamed Li told the Global Times Friday. "We will definitely have to pay compensation if we decide to pull out, and we can't find anyone else to take over the lease."
Wang Jiayi, a Suzhou resident who visited the Expo Park Friday, said the products in the shops were not as attractive as the Expo souvenirs available in the park.
Despite their hardship, none of the shopkeepers the Global Times spoke to Friday had plans to file a complaint with the Expo Bureau.
"We have signed the contract, so there is nothing more that we can do," Li said, adding that she hoped her fortunes would turn around before the end of the Expo in October.
