(From Jing Daily)
As the luxury retail industry in China goes up against a slowing economy and another year of the anti-graft campaign, Greater China’s department stores and shopping malls are continuing to feel the effects of a consumer base increasingly reliant on e-commerce, according to a new CBRE report.
The developers and landlords that have made it this far are finding they need to shift their strategy to keep their stores open and tenants happy. Meanwhile, all across the mainland, new shopping malls are being built. And that supply keeps rising.
For example, commercial real estate giant Dalian Wanda recently announced it will continue to push forward with mall expansion this year, even in third- and fourth-tier cities where the developer is halting new construction of offices and residences.
The company plans to have nine times as many malls as it does now in the next 10 years, with a likely focus on tourist destinations and theme parks. However, across the mainland, most of shopping mall supply growth is targeted in suburban areas in first and second-tier cities and in Shanghai and Shenzhen’s urban sprawls, according to CBRE’s Asia Pacific Real Estate Market Outlook 2016. Read More