Shoppers coming back to malls

2023 to end with nearly 400 new center openings, boosting number in China to 7,100

Consumers in China are increasingly returning to shopping centers after nearly a year of optimized COVID-19 prevention measures as additional commercial complexes have been built across the country, offering a wide range of lifestyle experiences and entertainment, an industry survey revealed.

According to the China Shopping Center Report 2023 published by the China Chain Store and Franchise Association, in the first half, about 120 new shopping centers opened nationwide. Their number is expected to reach around 400 by the end of this year.

By the end of 2022, China had about 6,700 shopping centers, each with an area of more than 30,000 square meters.

The surge in shopping centers actually slowed in 2022, with only 366 new projects launched.

In the first half of this year, the average daily shopper flow reached 18,500, up over 30 percent year-on-year, but down about 16 percent from the first half of 2019, the last year before the pandemic.

In 2022, there were nearly 27 billion shopper visits, averaging more than 15,000 daily, down 19 percent from 2021.

The per capita area, or the ratio of a shopping center's area to the national population, reached 0.38 sq m, up 0.03 sq m from 2021.

According to the report, on a per capita basis, shopping centers in China have reached the levels seen in developed countries.

The report found that outlet malls — or shopping villages comprising streets of exclusive factory stores selling merchandise at reduced prices — have had healthy growth this year. In 2022, about 230 outlet malls were in operation, including 23 newly opened ones, up 11 percent. Their sales revenue reached about 200 billion yuan ($27.9 million) last year.

By the third quarter of 2023, sales grew 26.3 percent year-on-year on average. Shopper visits grew by about 35 percent year-on-year, significantly higher than what was seen during the same period in 2022.

Trendy and lifestyle shopping destinations proved popular with young consumers. For example, Swire Properties posted robust interim results with revenue up 6 percent year-on-year to HK$7.29 billion ($933.9 million). Taikoo Li Chengdu, the leading shopping and lifestyle hub in Southwest China, enjoyed strong retail sales growth of 36 percent year-on-year in the first nine months, signaling sustained healthy growth for the entire year.

In Shanghai, both operators recorded sales growth rates of 41.6 percent and 109.7 percent, respectively. Indigo in Beijing saw a 24.6 percent increase in sales of the first three quarters, and Sanlitun Taikoo Li showed a 20.2 percent rise. In the first nine months, the occupancy rate of Taikoo Li's commercial properties on the mainland was above 94 percent.

Molly Wu, general manager of Taikoo Li Chengdu, hailed the importance of continued upgrades to the development.

With concerted efforts to optimize operations, Taikoo Li Chengdu has attracted more than 128 brands to either open new stores or revamp their existing ones, providing visitors with unique and innovative experiences, Wu said in an interview with media in August.

Shopping center operators have sought to exploit opportunities brought on by niche consumption categories. To align with the burgeoning outdoor lifestyle trend, brands including Stone Island, Honma and Aesop have chosen to establish their presence in Taikoo Li Chengdu, said the shopping center.