Professional Housing Management Practices in Hong Kong

CHAPTER 4. Management of Shopping Centres

Management of Shopping Centres 89 CHAPTER 4 Management of Shopping Centres Edward Y. L. CHAN and Mingo S. M. KWAN Introduction The development of professional housing management practices in Hong Kong has over the years been mainly focused on the residential sector. In reality, management of commercial facilities, in particular shopping centres, calls for even more specialised skills and innovations. In the last decade, commercial facilities in both private and public sectors have developed considerably, responding to the rapid changes in aspirations, high technology and customer needs. Housing management is thus more commonly called property management, reflecting the significance of the commercial element. In the past, shopping facilities have developed rapidly from the primitive type of retailing to the current air-conditioned malls, combining shopping, entertainment, recreation, dining and leisure facilities all under one roof. Progressively, a hierarchy of four types of key shopping venues has evolved in the market, namely street shops, metropolitan shopping centres, district or regional shopping centres and speciality shopping centres. Street shops are usually located in busy shopping areas like Mongkok, Tsimshatsui, Central District and Causeway Bay. These retail hubs build up naturally around MTR stations. They will become even more prominent as retail hubs due to the current trend of pedestrianizing busy streets. Metropolitan shopping centres are up-market commodity shopping attractions. Although tourist-oriented, they also aim to serve middle to upper income shoppers at prime urban locations. Examples are the Landmark, Pacific Place, Festival Walk, Harbour City and Time Square. District or regional shopping centres, serving a much wider population base at primary catchment areas, are mainly patronized by middle to lower income groups. They include the New Town Plaza, City Plaza, Telford Plaza, Plaza Hollywood, World of Whampoa and Maritime Square in the private sector. The 90 Edward Y. L. Chan and Mingo S. M. Kwan Hong Kong Housing Authority also operates the well-known Lok Fu Shopping Centre, Cheung Fat Shopping Centre and Tai Wo Shopping Centre. The large population support in the public housing estates assures their viability. Specialty shopping centres are those with special themes or special trades to attract target groups like Golden Computer Centre and Mongkok Computer Centre for computers, Island Beverly for fashion and Paradise Mall for themed shoppertainment. This chapter focuses on the basic design principles and management practices of the regional or district shopping centres in both the public and private sectors. First the macro and micro design considerations of a new shopping centre will be discussed. Then the management aspects of a shopping centre will be concentrated upon. For a better understanding of the key criteria for success in shopping centre management, a model for shopping centre management is developed at the end of the chapter. Shopping centre design While a retail viability study is an essential factor in the decision of building or upgrading a shopping centre, to build the centre with an innovative and appropriate design is the first and most important step to ensure subsequent successful operation of the shopping facility. A faulty design will generate endless management problems jeopardizing the viability and competitiveness of the centre. The major consideration in the design may be generally classified into macro and micro aspects and the key points in each area are highlighted in the ensuing paragraphs. Macro considerations POPULATION The disposable income and expenditure pattern of the target population within the catchment area is understandably the primary support for day-to-day shopping activities. The socio-economic characteristics of such population with medium term forecasts on future changes is also one of the major considerations in planning and designing a shopping centre. The primary catchment areas are therefore the first important consideration of potential shop tenants when assessing the business environment. INFRASTRUCTURE The road network and transportation system of a particular site and its neighbouring areas are other factors determining the suitability of a shopping Management of Shopping Centres 91 centre. This explains why more and more shopping centres are sited above major transport interchanges, bus terminals and railway stations. NEIGHBOURING DEVELOPMENTS The existing and future developments in neighbouring areas also have significant implications. The presence of a large and comprehensive centre in the locality will inevitably hinder the new centre from attracting patronage. Conversely, a neighbourhood without adequate retail provisions provides a better prospect of patronage. SITING OF SHOPPING CENTRE While accessibility by public transport is important, the importance of pedestrian linkage must not be underestimated. This...