“Shanghai’s retail scene is undergoing a quiet transformation. Rather than pursuing endless expansion, major brands are consolidating into flagship locations that can better express identity and experience. These core sites are becoming stages for brand reinvention and storytelling.”

JAMES MACDONALD, SAVILLS RESEARCH



Shanghai’s Night Economy Reignites Urban Spending

• Retail sales rose 3.7% YoY in the first eight months of 2025, with wholesale and retail trade up 4.7%, while accommodation and F&B recorded a 2.7% decline.

• One new project was launched along the Outer Ring Road in Q3/2025, adding 88,000 sqm of new retail space.

• The citywide vacancy rate edged down 0.1 ppt QoQ to 10.9%, representing a 0.8 ppt YoY decrease. Prime area vacancy rose to 9.4% (+0.5 ppt YoY), while non-prime vacancy fell to 11.2% (-0.2 ppt YoY).

• First-floor rents declined 0.4% QoQ to RMB 23.6 psm pday in Q3/2025, down 2.3% YoY.

• Supported by policies promoting the night-time economy, brands and shopping centres extended business hours, introduced pop-up pedestrian streets and markets, and saw notable increases in evening footfall and sales.

• Established brands continued to streamline operations by closing underperforming outlets and concentrating resources on flagship locations to strengthen brand image and consumer appeal.

• Four new projects are scheduled for completion in Q4/2025, delivering approximately 242,000 sqm of additional retail supply.