“To attract more footfalls, more landlords replaced their low-sales-per-square-foot brands with new brands already gaining popularity or with more affordable average order values. This works quite well at some malls on the back of the current economic environment and changing consumer behaviour.”

CARLBY XIE, SAVILLS RESEARCH

More buzzy brands enter Guangzhou

• Guangzhou’s retail sales decreased by 0.5% YoY to RMB728.5 billion as of August 2024. Despite that, retail sales in the cosmetics and sports sectors grew by 17.6% and 11.5% YoY, respectively.

• Guangzhou’s total retail property stock remained at 7.4 million sqm as of end-Q3/2024 as no new shopping centre was launched during the period.

• F&B remained the leading sector in store openings in Q3/2024, taking up 35.6% of the citywide total, though the percentage contracted by 18.6 ppts QoQ.

• The fashion sector registered the largest QoQ increment in store opening activities in Q3/2024, owing primarily to the accelerated brand-mix upgrade of projects in the prime areas.

• More new buzzy sports & outdoors brands launched new stores in Guangzhou, following the trend from last year.

• The citywide average vacancy rate decreased by 0.5 ppt QoQ and 1.7 ppts YoY to 12.2% by the end of Q3/2024.

• The citywide rents edged down 0.1% YoY on an index basis to an average of RMB621.4 psm pmth as of quarter end, as landlords were willing to review and adjust their rental offers, conditional on property vacancies and brands’ potential.