Sharing of Article - Red Boxes Like Red Packets
 

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July 6, 2009

Red boxes like red packets
Renting out space is extra income for owners, who say it brings vibrancy
By Kimberly Spykerman & Wee Jun Kai

Shopowners can earn extra income from renting out the space outside their shops, marked by red or yellow boxes. -- ST PHOTO: LAU FOOK KONG

HEARTLANDERS will be familiar with the red or yellow boxes that line the walkways in neighbourhood centres. Of the 20 shops in Marine Parade Central, for example, more than half have leased their outdoor space, for about $1,500 a month. Some shops can charge as high as $3,000 a month because they front the hawker centre, for example. Not bad for a space measuring just 2m by 1m.

The result: Makeshift stalls dot neighbourhoods, selling everything from baby clothes and lingerie, to handbags and toiletries. The most familiar sight is counters selling cellphones and accessories.

But what used to be a good thing for shopkeepers has become more of a lifebelt. The recession has hit trade and shops need these tenants to help get by, they say.

For some tenants, the stalls are a good way to pass the day. Madam Ti, for example, has been running a tailoring counter in the display area outside a pet shop at Marine Parade Central for the past five years. 'Business is all right and I have my regulars. It helps me pass the time,' said the seamstress, who is in her early 60s. But the recession has taken its toll on tenants too. Despite cheaper rent and more flexible hours - many work only half a day - people are spending less.

Said Mr Harris Cheong, 28, of the phone counters sprouting up next to his phone store in Hougang: 'We're targeting different markets. It's comparable between a hawker centre and a restaurant. Our customers trust we are not a 'hit and run' store. The only thing we lose out on in terms of pricing are the accessories. Other than that, we don't suffer much.'

Please read the full story in Monday's edition of The Straits Times