High turnover rate and high rent coexist, opening 7 coffee shops within 300 meters... Some street shops along Maoming North Road in the center of Shanghai | turnover rate | along the street

There are 7 coffee shops within 300 meters, and the number of convenience stores has sharply decreased. While it is difficult to find one shop on the bottom floor along the street, the turnover rate is high... Recently, reporters found the above phenomenon in the neighborhood adjacent to the popular check-in spot in Shanghai, Zhangyuan.

Based on the functional characteristics of different blocks, the business formats of the blocks largely reflect the market supply and demand relationship. At the same time, these bottom level shops along the street with good market outlets also shape the appearance of the blocks and affect their quality.

Is the convergence of business formats and internal competition just a pain in the adjustment period, or will it further affect the orderly growth and replacement of the neighborhood? How to help the neighborhood achieve a more diverse distribution of business formats, expand service functions, and better meet the needs of residents, passersby, tourists, and other parties while being full of prosperous commercial atmosphere? The reporter launched a visit.

High turnover rate and high rent coexist

More than 20 square meters, 26000 yuan; 30 square meters, 28000 yuan... This is the monthly rental price given by the salesperson for the shops along Maoming North Road after visiting three nearby real estate agents.

"Since June last year, there have been more people looking for shops than before the pandemic," said an intermediary. Due to supply shortages, landlords are not worried about renting out, and rent is also very strong. "There is almost no room for negotiation. Compared to the previous two years, some shops have even increased in price."

After being asked about the situation of sections such as Weihai Road, Julu Road, and Changle Road, several intermediaries also gave similar answers: currently, there are almost no vacant shops for rent on these roads. "Even if there are vacancies, the landlord has no intention of entering the market."

The reporter found that the rental market near the Nanjing West Road subway station is hot, which is related to the opening of the newly popular check-in spot Zhangyuan. At the end of 2022, the Zhangyuan Garden in Shikumen Lane, known as the "Number One Garden on the Sea", was grandly restarted and became a trendy cultural and commercial landmark. The adjacent road sections have also been endowed with "tourism functions" to a certain extent, leading to a major transformation of the business format.

At present, only the Weihai Road section between Maoming North Road and Shaanxi North Road, with a distance of only about 300 meters, has opened a total of 7 coffee shops, not including the coffee sales stalls in office buildings and convenience stores along the way. If you turn to Maoming North Road again, the newly opened coffee and beverage shops almost reach an average of 10 steps per store.

While new stores frequently open, some have also raised questions. A resident living in Jing'an Villa told reporters that almost all the convenience stores on Weihai Road have turned into cafes. "It's not very convenient to buy some small things," said Xiao Chen, who works in the joint office space on Weihai Road. Even in the coffee capital of Shanghai, the surrounding "coffee concentration" is too high. Xiao Chen sighed, "Do we really need so many coffee shops?"

Is it really necessary? It can be seen from the actual operating conditions of these stores. Ms. Tang has been operating a shoe store on Maoming North Road for over 4 years, watching as the surrounding businesses gradually become more diversified. "Some stores have only been popular for two months since their opening, but now their storefronts are deserted. Some stores have changed hands three times a year and still sell coffee and milk tea."

Old Li, who has been operating a Japanese restaurant on Julu Road for 13 years, also told reporters that besides his home and the neighboring cigarette paper store, it is difficult to find even a "5-year-old shop" nearby. A young man who once won a place in a barista competition rented a shop next to Old Li, but soon he couldn't hold on anymore. After leaving the venue in a daze, it became a nail salon and now a printing shop, with only two years of experience.

An intermediary said that the high turnover rate is not only present on Maoming North Road, but also in many neighborhoods in the center of Shanghai. "Previously, it used to be Julu Road, Changle Road, and Fumin Road where the storefronts changed every three days. Now, Feng Shui takes turns, and it's here that it's even more popular. There's not too much risk and high returns, so selling coffee here is the best place because it's more concentrated."

According to Ms. Tang's long-term observation on this street, she does not agree with the intermediary's statement that "the more you gather, the more it becomes a market": "The unit price of coffee is not as high as shoes and clothing, and the demand for passersby, surrounding residents, and white-collar workers is limited. You can't buy 10 cups of coffee on the same street, can you?" Other shops and intermediaries nearby also reported to reporters that the cost of investing in a coffee shop, excluding rent, ranges from 300000 to 700000 yuan. In fact, there are not many people who can make money. "The key depends on whether you have the ability to promote and operate."

In the view of Chao Gangling, a professor at the School of Business at Shanghai University of Finance and Economics, we are currently in a period of gradual recovery in consumption but frequent turnover of commercial formats along the street. "A high turnover rate must be an obvious characteristic, but on the other hand, if ten people invested in the past and seven or eight people had the risk of losing money, the current investment risk coefficient will only be higher."

Under the new employment situation, the number of entrepreneurs is increasing

Where did these newcomers come from when the shops along the streets in the city become popular?

Chao Gangling believes that the current severe employment situation makes many people, especially young people who grew up in the Internet era, look forward to self employment through opening stores and looking for opportunities in the commercial prosperity of downtown Shanghai. Choosing to open a coffee shop, milk tea shop, bar, etc. does not require high skills and has a lower entry threshold. And the required purchase of machinery and equipment is simple, and labor costs are also limited.

And those who make room for new entrants are often luggage, clothing, footwear, and accessory stores. They were once the main force of street shops in the city center. A 90s generation recalls that when they were young, they would take a bus with their parents on holidays from Pudong to Changle Road and Julu Road for shopping.

"At that time, Maoming Road was really easy to visit. In this street with many clothing stores, each door had its own business characteristics. Each family pushed the door to enter, tried while picking, and could stay for an afternoon. In the evening, go to Huaihai Road or Nanjing West Road to taste food, and enjoy the wutong trees and old buildings along the way. In memory, this was a beautiful day."

Today, the Internet is sweeping, and convenient and low-cost online shopping is becoming the mainstream. It is also the footwear and clothing industry that is first attracted by the Internet. "Even the source store of the factory is doing live streaming sales, and we have to bear the offline rent, water and electricity costs. How can we possibly compete with others?" The owner of a clothing store on Maoming North Road told reporters.

At the same time, Shanghai's urban renewal is advancing, and a large number of people are moving out of the central urban area, weakening the residential functions of the neighborhoods. "The improvement of business office, commercial consumption, and tourism functions has further driven the reshuffle of street businesses," said Chao Gangling.

Now, the wind seems to have turned again. Xu Jinjiang, Dean of the Urban Culture Research Institute of the Shanghai Academy of Social Sciences, proposed that with the concept of strollable streets and readable buildings deeply ingrained in people's hearts, from aunties and uncles to Generation Z, the hobby of shopping has been revived. On social media platforms such as Xiaohongshu, "citywalk" city walking has become a trendy lifestyle, and consumer behavior is closely tied to experiential experiences.

Perhaps because of this, more individual businesses and capital are vying to enter, trying to grab a share of the neighborhood consumption. But obviously, there are 7 coffee shops within 300 meters, and people won't go drinking cup by cup. Without catering, clothing, retail and other rich formats, the block can not retain people. After taking photos and clocking in, people still return to the embrace of the Internet and the complex.

Experts further remind that when the neighborhoods in the city center with historical heritage and cultural endowments move towards "landscaping" and excessive commercialization, the cultural essence of the neighborhoods will be irreversibly destroyed. "If people come to so-called internet celebrity neighborhoods, they still browse the same brand stores, drink the coffee they usually drink from chain stores, and capture the conceptualized and symbolized cultural scenery that is similar to other places, how long can the popularity last? And for local residents, the commercial consumption function constantly squeezes the life service function, becoming a bystander of the small shop at their doorstep, how will they feel?"

In the current employment environment, many young people hope to rent a storefront house along the street, open a small shop, and start their own businesses, which should be actively encouraged. Can the relevant employment and entrepreneurship guidance departments of the city, district, and street choose different neighborhoods to conduct solid market research, compile manuals to provide information, provide guidance to entrepreneurs, help them avoid detours, and help them grow and develop better. This is also a component of optimizing the business environment.

Behind the transformation of small shops in the neighborhood is a reflection of the times and a projection of urban renewal. This is related to the tomorrow of every ordinary small shop owner who enters with entrepreneurial dreams, and also to every day of us ordinary people who enjoy the neighborhood and love the city.