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PR Newswire
10-01-2011, 11:19 PM
Not vested in OCK but I must say OCK is doing a rather decent job in a cut throat retail F&B biz.
The overheads are kept in check by keeping shop space small.
Aunties are employed to keep wages in check.
In the Retail business, the business dynamics are against them.
Rising rent(especially with frequent incremental increases from REITS)/labor cost and raw materials.
When you have to pay $30-$40 psf of rent, it tough to make a good profit.
If OCK could acquire small but great locations, it would put one of their rapidly increasing operating cost(rent) frozen.
This move will enable them to have an edge over competition over the long term.
The overheads are kept in check by keeping shop space small.
Aunties are employed to keep wages in check.
In the Retail business, the business dynamics are against them.
Rising rent(especially with frequent incremental increases from REITS)/labor cost and raw materials.
When you have to pay $30-$40 psf of rent, it tough to make a good profit.
If OCK could acquire small but great locations, it would put one of their rapidly increasing operating cost(rent) frozen.
This move will enable them to have an edge over competition over the long term.