Online retail will cause some malls to fail: experts
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.