But Mrs Collett (40), a busy mother-of-four, could see the ''magic'' in the area, next to the town's historic precinct.
Mrs Hyde Boutique opened late last month, stocking nine labels including Zambesi, Nom*D, Ingrid Starnes and Ricochet, and she has been ''overwhelmed'' by the response.
Originally from Lower Hutt, Mrs Collett now lives at Papakaio with her dairy farmer husband, Steve, and their children, aged between 4 and 8.
She did a fashion design course in Wellington and worked as a pattern-maker for bridal boutique Elizabeth Couture before heading to London and working at the likes of landmark department stores Harvey Nichols and Selfridges, and then to Sydney, where she was a pattern-maker for Dotti and other labels.
It was while in London that she met her future husband. He brought her to Papakaio 12 years ago.
She started her own label, selling in Christchurch, but once she had children - particularly when she had four under the age of 5 - ''everything was put on hold'', she said.
After her three oldest children started school, Mrs Collett decided she needed to do something and that was when ''this crazy thing happened'', she said, laughing.
Initially, she thought she might start her own label.
She was talking to Gabby Docherty, who opened Estella Hair Studio in Tees St last year, who mentioned there was a vacant shop nearby that she could use as a workspace.
Then she thought she might open ''just a wee shop'', a couple of days a week, and do a little sewing as well.
She contacted some New Zealand designers and fashion industry heavyweight Zambesi was one of the first to get back to her.
It was the first time the label had been stocked in Oamaru and, following other positive responses from other labels, she realised that the business was ''serious''.
She had been busy since launching late last month, and had already had to hire a staff member.
''Most people come and say, 'we needed this','' she said.
Hyde was Mrs Collett's maiden name and her mother, who died about 13 years ago, gave her inspiration.
She had six children, along with being a sales representative, and she loved beautiful things, Mrs Collett said.
When she was a child, Mrs Collett travelled around the North Island with her mother in the school holidays.
She remembered passing through Greytown, in the Wairarapa, and seeing old, abandoned shops in the main street.
Fast forward about 20 years and the town was unrecognisable, with a transformation to beautiful, ''boutiquey'' shops, she said.
Hopefully, the transformation of Tees St - which has included the openings of a cafe, hair studio and ''day spa'' for dogs - would continue, she said.
Coincidentally, Mrs Collett's grandfather was from Oamaru and grew up in Tees St.
While she might look at launching her own label in a couple of years, she was learning the market in the meantime and seeing what customers wanted.
It was fun choosing the stock. She often forgot what she had ordered, so when it turned up, it was ''like Christmas'', she said.
Juggling family life with running a business was a struggle, she admitted, but it was something that she ''had to do''.
''There was something in me, I couldn't say no. It has been a struggle but I love it,'' she said.
