What happened to shopping malls in China after lockdown was lifted

  1. If the recovery trend continues at the current pace, offline retail should bounce back to the pre-pandemic level by June.
  2. Beauty recovers faster than luxury. That said, it might not translate into a faster recovery of this sector in terms of transaction value due to a lower unit price
  3. New first-tier cities show buying potential. They were more sensitive to the changes during the outbreak, but they recovered faster than old leading cities.
  4. Duty-free retail is in a tough spot. The recovery of travel retails will be much slower than the domestic recovery as other countries struggle to contain the COVID-19 outbreak.
  • Mainland luxury traffic in the selected cities all decreased significantly over 75% from mid-Jan to mid-Feb.
  • New first-tier cities experienced harsher hits than Beijing, Shanghai, Guangzhou, and Shenzhen, with an average 90% decrease from the normal traffic level.
  • All cities started to rebound in mid-Feb. with new first-tier cities- Beijing, Shanghai, Guangzhou, and Shenzhen.
  • The recovery in Beijing was much slower compared to all the other cities in China.
  • Mainland beauty traffic in the selected cities dropped significantly by over 75% from mid-Jan to mid-Feb.
  • Beauty stores in Beijing, Shanghai, Guangzhou, and Shenzhen were recovering faster than luxury boutiques.
  • Similar to the luxury category all cities started the recovery in mid-February, with Beijing showing the slowest increase in traffic.
  • Traffic in premium shopping malls in Beijing experienced a drastic decline by over 85% from mid-Jan to mid-Feb.
  • Traffic started to pick up only from the third week of Feb. and by the end of March reached an average of 35% pre-pandemic traffic.
  • Traffic in premium shopping malls in Shanghai dropped by over 80% from mid-Jan to mid-Feb.
  • Traffic started to rebound from the third week of Feb, growing to the ~70% of the pre-pandemic level by the end of March.
  • Traffic for premium shopping malls in Chengdu declined by over 85% from mid-Jan to mid-Feb.
  • Traffic started to recover from the third week of Feb. Chengdu malls were recovering faster than stores in Beijing, but ~20% slower than Shanghai.
  • Footfall in luxury brand stores in selected Hong Kong districts dropped ~40% pre-pandemic level by the end of Jan.
  • Traffic has recovered modestly since then and started to deteriorate again from the end of March due to travel restrictions.
  • Traffic in cosmetics and beauty stores in Hong Kong was recovering slower than in luxury stores.
  • Footfall remained almost stagnant since the beginning of Feb and declined by ~5% at the end of March.
  • Footfall in selected premium shopping malls in Hong Kong have been halved by the end of Jan from its pre-pandemic level.
  • Traffic in IFC and Pacific Place has been more resilient than other malls, but have also experienced a decline at the end of March.
  • Footfall in brand stores at hotels and shopping malls have declined by ~95% by mid-February.
  • The number of visitors started to increase in mid-February, declining again in the 2nd half of March.

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Entrepreneur, Investor, Advisor, Speaker. Bestselling Author of “Chasing Black Unicorns”. www.marekzmyslowski.com

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Marek Zmyslowski

Marek Zmyslowski

Entrepreneur, Investor, Advisor, Speaker. Bestselling Author of “Chasing Black Unicorns”. www.marekzmyslowski.com

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