Retailers eye expansion amid upbeat consumption trend
New types of catering services, beverages and brand tie-ups in the retail sector would continue to push shopping space upgrade and renewal in Shanghai.
First-tier Chinese cities are the top choice of destinations for cross-border retail expansion as investors and executives bet on a rebound in consumption sentiment.
The Asia Pacific Retail Flash Survey by the global property services provider CBRE suggests as many as 71 percent of retailers are planning to expand their physical presence or add new stores in the next 12 months.
A total of 72 percent of the retailers expect their sales to rise from 2022.
Shanghai is likely to see new retail space supply of 910,000 square meters in 2023, and the average retail property rental is expected to add 1 percent to 1.5 percent this year, with vacancy rate at around 8 percent to 9 percent, the consultancy said.
New types of catering services, beverages and brand tie-ups in the retail sector would continue to push shopping space upgrade and renewal in the city, said Ivy Lu, head of research at CBRE East China.
Shoppers are keen to seek new retail scenarios, outdoor activities and pet-friendly leisure spaces, and that's a major motivation for retailers and department store operators to update their store planning.
Last year, a total of 1,073 foreign and domestic brands set up their debut stores in the city, confirming its position as the top consumption hub in the country.
An increasing number of new store openings and retail projects are expected in the second half and coming years with overseas investors returning to China and assessing new investment opportunities, Lu added.
