Restaurants, cinemas, bakery chains – hardly a week goes by without news of closures. The retail sector continues to struggle, and while there’s no shortage of analysis on its decline, the reasons are many and complex.
Retail slumps are not new, both in Hong Kong and globally. In the UK, high streets have seen waves of shop closures due to economic pressures and the rise of online shopping. Can their experiences offer us insights into what might work here?
When bad news dominates, I prefer to stay positive – seeking out exceptional cases that tell a different, more encouraging story. I also look for ways these retailers can sustain their success.
One such place is a corner of Hong Kong I frequent often: the cluster of tenement blocks bounded by Lan Fong Road, Yun Ping Road, and Lee Garden Road in Causeway Bay. Historically known as East Point, some now refer to it as the Lee Garden Hill area.
Despite being built in the 1950s and ’60s, the walk-up buildings here are well preserved.
Inside, you’ll find a diverse mix of retailers – from selling second-hand fashion, yarn, stationery, handmade silver jewellery, and skiing gear, to offering services like Shanghai barbering, Thai boxing, and Pilates. Climbing the terrazzo stairs feels like a treasure hunt, full of surprise finds.
To me, this corner is Hong Kong’s version of Aoyama in Tokyo, known for its charming backstreets and niche stores.
The street-level shops are just as exciting. Every day, locals and tourists queue outside Bakehouse for its bread, pastries, and famous egg tarts.
Since opening during the peak of the pandemic, there hasn’t been a single day without a line outside its signature red-brick storefront. Even pigeons occasionally join in, scavenging for crumbs.
Just a few yards away on Pak Sha Road is CACAOLAB, a chocolate shop where the aroma of cocoa butter fills the air. The ground floor offers a variety of chocolates and pastries, while the upper floor houses a cocoa museum, showcasing everything from plantation stories to roasting techniques. The chocolatier has built a loyal following.
If sourdough and chocolate feel too indulgent, Happy Cafe on Lan Fong Road serves classic cha chaan teng dishes and Hong Kong-style baked goods. For many working nearby, it’s a lunchtime favourite.
To understand its significance, we must look back to Wan Chai’s Happy Bakery and Shun King Restaurant, two beloved institutions that stood side by side on Queen’s Road East for four decades before closing. Two years ago, they reopened as Happy Cafe in Causeway Bay, offering stir-fried beef noodles, baked pork chop rice, cream cones, pineapple buns, and more.
Recently, a new addition joined this tenement cluster: a perfume shop poetically named To Summer. It sells perfumes, candles, and essential oils. As a regular visitor, I was relieved the landlord didn’t lease the space to just anyone willing to pay.
In tough economic times, it’s tempting to prioritise short-term returns, often at the expense of community character. We’ve seen landlords rent to tourist-focused retailers, disregarding the negative impact on local life.
The previous tenant sold face masks and hand sanitisers – a pandemic-era business that closed late last year. A pop-up swimwear store briefly took its place. I worried the next occupant might be yet another drugstore, which Causeway Bay has no shortage of. But when To Summer opened, people stopped to take photos of its storefront. It may soon become a social media sensation.
In this tenement cluster, whether it’s for a cocktail bun, a croissant or a pair of Nikes, queuing is the norm. These businesses seem immune to the broader economic slowdown.
Yes, Causeway Bay is a prime location – but if location alone guaranteed success, downtown Los Angeles wouldn’t be seeing an exodus of businesses.
I believe the secret to this neighbourhood’s resilience lies in its accessibility, distinctiveness, diversity, and density. Its proximity to the MTR, well-preserved tenement blocks, and human-scale streets create a unique cityscape. The diversity of shops – aligned with local tastes – and their concentration in a walkable area all contribute to its vibrancy.
That said, the area faces challenges. Traffic is a major concern.
Until a few years ago, Pak Sha Road was a pedestrian zone during evenings and weekends. Despite its excellent MTR access, the Transport Department decided to reopen it to traffic.
Given the pressures retailers face, it’s time for transport planners to revisit this decision.
A UK study on revitalising high streets found that pedestrianisation boosts sales. Making streets more walkable, adding street furniture, greenery, and community facilities all help draw people back.
This is a timely reminder of the importance of pedestrian-friendly urban design. Whether for reducing emissions, improving safety, or enhancing the shopping experience, Causeway Bay would benefit greatly from re-pedestrianisation.
While the factors contributing to this corner’s success may not be replicable everywhere, it’s time we take a systematic look at the retail slump—and explore how thoughtful urban design can support sustainable growth.
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