Online re­tail will cause some malls to fail: ex­perts

China Daily (Canada) - - NEWS CAPSULE -

Fast-grow­ing online re­tail­ers will cause some shop­ping­mall de­vel­op­ers in China to go bank­rupt this year, ac­cord­ing to a McKin­sey & Co China ex­pert.

Gor­don Orr, a Shang­haibased di­rec­tor for the New York­based man­age­ment-con­sult­ing firm, pre­dicts that malls owned by smaller, cash-poor de­vel­op­ers and city-spon­sored Sta­te­owned de­vel­op­ers won’t sur­vive the on­slaught from elec­tronic re­tail­ers for long.

“The weak will get weaker, and while they may be able to con­sol­i­date, it’s more likely they will go out of busi­ness,” Orr wrote in his list of pre­dic­tions for 2014.

Orr also pre­dicted the Chi­nese gov­ern­ment will shift its fo­cus to job cre­ation from eco­nomic growth to counter ris­ing in­put costs and new tech­nol­ogy that have un­der­mined job growth.

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