It’s back-to-business with a big makeover
As COVID-19 wanes throughout China, many consumers returning to their favorite shopping centers often find their must-visit stores either updated or replaced.
Over the past several months, as fears of the virus kept shoppers at home, many retailers and caterers have used the downtime to renovate their bricks-and-mortar stores to make them more appealing. Commercial real estate operators have also made adjustments to tenants’ layouts to enhance shopping experiences.
In Taikoo Li Sanlitun, a vibrant shopping area in Beijing, more than 20 store venues have been altered.
Among them are newcomer Shake Shack, the New Yorkstyle burger restaurant, which opened shop on Aug 10. The chain made its China debut in Shanghai last year.
The new store in Beijing draws inspiration from the capital’s traditional courtyard houses with contemporary updated touches. One of the Beijing restaurant’s signature items is the Hutong Hawthorn, inspired both by the capital’s alleys and the popular fruit.
At the main entry to Taikoo Li Sanlitun, Starbucks renovated its first flagship outlet on the Chinese mainland and opened Bar Mixato last month, which integrates the modern cafe and bar experience to appeal to young consumers.
Wu Xiaolei, general manager of the north region for Starbucks, said: “Beijing is the first place where Starbucks met Chinese consumers. The newly renovated store is expected to become the company’s next coffee landmark and destination for urban culture.”
Starbucks opened its first store on the Chinese mainland in Beijing in 1999.
In July Apple opened an entirely novel store adjacent to its previous location in the Sanlitun shopping and entertainment district. The new store is twice the size of its original and introduces several firsts for Apple such as its latest designs and first integrated solar array in a retail store in China.
Shoppers are beginning to return in numbers to retail destinations such as Taikoo Li. According to first half results of Swire Properties, which operates Taikoo Li, COVID-19 adversely affected retail investment properties on the Chinese mainland in the first half, yet footfall and retail sales on the Chinese mainland have recovered strongly since March.
Swire’s gross rental income from Chinese mainland retail properties in the first half was HK$1.1 billion ($141.8 million), 8% lower than in the corresponding period in 2019.
A report by RET Real Estate Consultancy said that since June, 188 new stores have opened in Beijing, 173 in Shanghai, 192 in Shenzhen and 128 in Guangzhou.
Of the newly opened stores that were either eateries or cafes. There were 96 in Beijing, 69 in Shanghai, 60 in Shenzhen and 84 in Guangzhou.
The report said long-term demand is expected to continue to grow and the prevalence and preference for online shopping during COVID-19 is likely to plateau and taper off, laying a solid foundation for quality brands and shopping destinations.
In Shanghai Xintiandi, in the heart of the city, and noted for its upscale restaurants, bars, cafes and boutiques, the ratio of the retailers of cosmetics, lifestyle products and fashionable brands has been increased recently to diversify shopping options.
For example, Xintiandi invited more world-leading cosmetic names such as
NARS and YSL to open flagship stores. The lifestyle brand Tom Dixon has its largest and first Asia-Pacific flagship store in the pipeline.
The integrated shopping mall Xintiandi Style I, housing trendy brands, will open in November to further appeal to high-end shoppers.
Xintiandi has also been adding more restaurants such as Foodie Social — a 32,300 square feet venue combining catering and retail experiences.
Clarence Lee, commercial director of the Taipingqiao and Panlong projects of China Xintiandi, said they have spruced up shopping festival themes, including live performances and art activities, and joined with tenants in launching promotions and exploring digital tools such as livestreaming to gain more access to shoppers.
The RET report said that despite uncertainties along the road to recovery, developers and mall operators have never been so firm in developing their online platforms, including online shopping websites and livestreaming promotions, to further expand customer outreach, extend services and boost sales.
A recent China Chain Store & Franchise Association report on Chinese shopping centers suggested mall and shopping center operators improve their daily operational capacities and go with the transition to digitalization.
The report also found that the COVID-19 pandemic had a severe impact on shopping centers and commercial real estate sectors. The survey collected data from 2,014 retail venues from 44 first-to-thirdtier cities. Survey respondents were aged between 18 and 55, and the survey was carried out between October and March.
“Beijing is the first place where Starbucks met Chinese consumers. The newly renovated store is expected to become the company’s next coffee landmark and destination for urban culture.”
WU XIAOLEI