“The younger generation of shoppers today are looking for more than just products—they want experiences that make them feel good and reflect their identity. Brands that can create emotional connections are more likely to stand out, build lasting loyalty, and drive repeat purchases, even in the current market. ”

JAMES MACDONALD, SAVILLS RESEARCH



Immersive Themes Redefine the Retail Experience

• Retail sales grew by 1.4% YoY in the first five months of 2025, with wholesale and retail up 1.9%, while accommodation and F&B declined by 2.5%.

• One new project was launched within the Outer Ring Road in Q2/2025, contributing 100,000 sqm of new retail space.

• The citywide vacancy rate fell 0.2 ppts QoQ to 11.0%, down 0.7 ppts YoY. Prime area vacancy declined to 8.9% (-0.5 ppts YoY), while non-prime vacancy fell to 11.5% (-0.7 ppts YoY).

• First-floor rents decreased 0.4% QoQ to RMB23.9 psm pday in Q2/2025, representing a 2.4% YoY decline.

• Shopping mall renovations are increasingly themed and immersive, with large-scale upgrades aimed at enhancing consumer engagement and driving footfall.

• Emotional value and experiential retail are creating growth opportunities for emerging brands, particularly in creative arts, trendy toys, accessories, and fragrances, supported by high consumer stickiness.

• Six additional projects are scheduled to open in 2H/2025, adding approximately 410,000 sqm of new supply.