Classic store to call it a day as habits change

Consisting of two high rises with a height of 370 meters and 220 m, respectively, and a flagship mall of some 230,000 square meters, ITC will complete its major commercial space in 2024, said its developer Sun Hung Kai Properties.

The accelerated development of the ITC and the transformation of the two department stores will make shopping in the area more convenient and Xujiahui business district more prosperous, said Chen Yong, director of Xuhui district's commission of commerce.

The upgrade of Xuhui is not an isolated event. The Middle Huaihai Road business district, one of the city's traditional high streets, is also welcoming a face-lift by inviting well-known brands to open outlets along the 120-year-old street.

In a bid to upgrade itself, the Middle Huaihai Road business district invited quality brands from home and abroad to the area during an investment conference held on July 26, and inked deals with a batch of well-known brands including US-based fried chicken brand Popeyes, eastday.com reported.

When Popeyes opened its first flagship restaurant on the Chinese mainland in 2020, a record was set as people queued for eight hours to get a bite of its signature products. Now it just reopened its Middle Huaihai Road store on Aug 19 after a change of its Chinese operator, which is reported to be Cartesian Capital Group, operator of Tim Hortons cafes across the nation.

Having a history that can be traced back to 1900, the Middle Huaihai Road business district has experienced quite a few ups and downs. Through a set of innovations and upgrades, even its previously lower revenue-earning middle section of the road has boosted its appeal among young shoppers thanks to the iconic TX Huaihai Mall.

"TX Huaihai provides an example of how a relatively smaller-sized mall can adapt to special conditions," said Qi.

Targeting younger shoppers, TX Huaihai holds many activities including inviting artists and designers, which successfully attracts young people to pay visits to the mall either for exhibitions or to buy debut products.

Liu Jiayi, a fashion designer whose job is to visit various shopping centers across the nation, said the business districts in Shanghai are on par with other global metropolises, both in terms of fashion and shopping experience.

The 29-year-old Liu particularly favors the West Nanjing Road business district.

Indeed, that district is known for its internationalization and high-end service, and has also experienced a slew of renovations and upgrades in recent years. Its goal is to have its total annual retail revenue exceed 100 billion yuan by the end of the 14th Five-Year Plan (2021-25) period, according to the district government.

Yang said as the retail sector in China is past its infancy and the fast development phase, it requires every retail operator to be creative in their upgrades.

"It will be very difficult, not only because of the fierce competition, such as constantly upgrading requirements for shopping, dining and entertainment, but also due to competition from e-commerce," Yang said.

"Especially for young consumers, in order to persuade them to leave their cozy homes to go to physical stores, shopping centers need to have offerings that they cannot get from online shopping, and keep them coming back with abundant and innovative choices," said Yang.

Against the backdrop of the central government's call for restoring and expanding consumption and Shanghai's goal of becoming an international consumption hub, there have been intense efforts made by malls and business districts. Qi suggested each mall or department store establish its unique style.

"It is rare for a business district to become successful by only having one great shopping mall. Instead, a business district that boasts a variety of shopping centers differentiated from each other in operating formats and brands will make the area more attractive and influential," Qi said.

The changes made in business districts may mean the end for shopping destinations like Pacific Department Store, but the shopping area will still be there, and hopefully come back with a better identity, Yang said.