Shopping centers have stellar year

China's shopping centers saw broad growth in sales, foot traffic and rental income in 2024, according to a shopping center industry report, recently released by the China Chain Store & Franchise Association.

The report found that 73 percent of surveyed venues recorded year-on-year sales growth, with the majority seeing moderate increases.

Nearly half achieved growth of up to 10 percent, while 20 percent posted gains exceeding that threshold.

More than half of venues surveyed also reported an increase in online sales, underscoring the effectiveness of an omni-channel strategy that integrates digital and offline operations with innovative marketing.

Shopping centers have actively expanded their online business to drive sales. For instance, Wushang Group, a leading shopping mall operator in Wuhan, Hubei province, saw its online transaction volume rise 20 percent year-on-year in 2024, with online orders surging 77 percent and the number of online users 25 percent higher, according to the company.

The report's findings were based on a survey of CCFA member companies, including the top 100 shopping centers and major comprehensive retailers. A total of 113 venues spanning 41 enterprises participated in the survey.

Foot traffic also saw an overall uptrend, with 15 shopping centers reporting increases of up to 20 percent, while others experienced more moderate gains. The data highlight a steady rise in consumer visits throughout the year, contributing to stronger overall sales performance, said the report.

Member-driven consumption remained a key contributor to total annual sales, with 76 venues reporting an increase in the proportion of revenue generated by their membership programs, while 31 saw no change.

Rental income also improved, with 70 percent of surveyed locations reporting year-on-year growth. Among them, several recorded increases of more than 10 percent, while a smaller proportion achieved gains exceeding 20 percent.

Despite China's vast retail market and diverse business entities, the sector still faces challenges such as uneven development and intensifying competition.

Industry experts said that diversified supply will shape the next phase of retail growth, as new national policies create fresh opportunities in previously overlooked segments.

Meng Yi, head of the northern commercial department at Cushman & Wakefield, said the commercial sector is shifting back to a demand-driven, people-oriented model.

Meng told the Beijing News that both population density and increasing demand for high-quality services will drive future retail transformations.

Sectors catering to the silver economy, healthcare, multigenerational education, and cultural, commercial and sports-related experiences are all poised for expansion, he said.

With strong government policy support, these segments are expected to become key drivers of China's next wave of retail growth, Meng added.