Hong Kong supermarket chain Uselect winds down operations amid relentless retail slump

HONG KONG: Supermarket chain Uselect has become the latest business to wind down its operations in Hong Kong amid a relentless retail slump, even as some residents said they preferred smaller stores and continued to seek out local shops against prevailing trends.
A slew of businesses in the retail and restaurant sector have announced their closure in recent days, weeks and months, as more residents have headed to mainland Chinese cities to spend or opted to tighten their belts in the wake of the COVID-19 pandemic.
Uselect appears to be the latest chain owned by state-owned China Resources Group winding down its operations just days after its health product business CR Care announced it would shut all 19 of its local branches in November after 13 years in Hong Kong.
The supermarket chain operated around 100 locations as recently as last year, but its website on Sunday (Oct 13) showed only 40 remained, a number of which were in the process of being closed down, a Post check revealed.
Signs were displayed outside the chain’s Queen’s Terrace location in Sheung Wan – among the 40 open locations listed on the Uselect website – announcing the shop would cease operations on Oct 23.
Other locations in Tin Hau and Chai Wan also reportedly displayed notices saying those branches would also close before the month was out.
Local retiree Jenny Wong, 65, said she was sad to hear about the Queen’s Terrace outlet shutting down, noting the closure was probably due in part to the city’s post-pandemic economic woes and competition from neighbouring Shenzhen.
“The local supermarket is essential. I feel like I need to support local stores,” Wong said as she left the branch with a bag of groceries.
Hong Kong’s year-on-year retail sales declined for a sixth straight month in August, falling by 10.1 per cent.
In other parts of the city, support for local businesses has kept some smaller shops in operation despite the slump in the wider retail scene.
Among the crowd of customers at phone case brand Casetify’s shop in Causeway Bay on Sunday were Christine Young, 33, and her girlfriend Viola Wong, 36.
Young, who works in e-commerce, said it was “saddening and disappointing” that it had become a trend among residents to travel to Shenzhen or other mainland cities over the weekends and holidays.
While acknowledging that Hong Kong was more expensive than the mainland and that choice was dwindling as shops closed, Young said it was thus all the more important for residents to support local retailers.
Young said she and Wong would often explore neighbourhoods such as Tai Hang with the intention of giving local shops their business.
“We want them to be able to survive,” Young said. “We know if we don’t, they may be gone some day soon.”
Nearby at Showa Film Camera, a locally owned photography shop with locations in Causeway Bay and Mong Kok, sisters Liu Yuen-ting, 31 and Eunice Liu Yuen-yiu, 26, browsed a selection of reusable film cameras.
The sisters, themselves owners of a local flower shop, had travelled from their home in Tai Po to Causeway Bay specifically to visit the camera store, they said.
The younger Liu admitted that most of her shopping was done online these days owing to the convenience and wider selection of products, but she still tried to support smaller shops such clothing stores run by local designers.
She added that the camera store, which sells second-hand vintage equipment, was an example of something “special” in the city that could not be found in Shenzhen.
“Some shops are really unique in Hong Kong,” her sister chimed in.
Hugo Tang Wai-yip, a 31-year-old staff member who has worked at Showa Film Camera for six years, said such sentiments from customers like the Liu sisters made him “very happy”.
Tang said his employers had considered shutting down the Causeway Bay branch last year, but he had urged them to keep it running after receiving much support from the local community.
“There are always people who love this city, and we want to attract those people,” Tang said.
“Seeing familiar faces, maybe not every day but on a weekly basis, it makes you feel good and is one of my motivations to keep doing this.”
This article was first published on SCMP.