The survey covers 50 shopping malls with retail GFA totaling 5.37 million sq. m. More than 10,495 shops/stores were engaged in the survey, and the sampling rate reaches 86%. The report marks the ever-first study of retail tenant profile in Chengdu local market, and consists of four parts that tap into the overall market, geographic feature, floor decay and the influence of direct metro access, with aims to capture the latest trends of retail leasing and operation.

 

Overall Market

Seven sectors can best reflect market development trends in terms of health, online sensations, technology and interaction, etc.

Optimization and enhancements of retail sector are being made in the fashion category whereas outdoor and sports brands are now placing further emphasis on overall shopping experience and obtaining market share of specialized markets. Demand in lifestyle sector is led by entertainment and sports, but is gradually becoming more refined, education and training showing increasing signs of growth. Fine dining and quick service restaurants (light meals, fast-casual dining) have begun to gain popularity. Tea-based drinks have also begun to replace the Korean-styled coffee market. The demise of department stores will be the next big trend. "Internet + retail" will create new market opportunities, the supermarket sector has entered a phase of transformation - New Retail 2.0.

                                                                                                                                                         Geographic Analysis

Prime/secondary/suburban markets show diverging features of tenant mix

The Fashion category focuses on the expansion of experiential outlets and grows family-typed customer base in the suburban submarkets. Skincare and beauty category continues to open up its locations in the landmark shopping malls. Lifestyle sector’s functional value is of increasing importance in submarkets and shopping malls at all levels, and its proportion is gradually increased from the city center to the surrounding areas. The proportion and composition of F&B sector may vary greatly due to the positioning of the project, location and other factors. The diverse selection of food and beverage categories has presented distinct distribution patterns in three different submarkets. Anchor tenants have strong overlap with the lifestyle sectors. However, its geographical features show an inverse correlation. The high proportion of anchor tenants in secondary submarkets awaits adjustment.

 

 

Floor Analysis

F&B tenants go lower in shopping malls

Cosmetics have replaced some of the fashion brands and have become the new popular category in the lower levels, consumer electronics retailers are inclined to open experiential stores in the lower levels as well. F&B sector accelerated shift towards lower floor levels. A mixture of different sectors allows consumption to be done on a single floor. Lifestyle sector saw aggressive expansion, filling vacant space left by food and beverage tenants in the upper floors. As major generators of traffic, new retail supermarkets have redefined the anchor tenant in basement area, which has helped drive the proportion of supermarkets in underground areas.

 

 

Metro Access Analysis

Metro access reshapes foot traffic circulation in basement levels

Anchor tenants occupy 62% space of basement levels of shopping malls with direct access to a metro station. If not, the percentage halves to 37%. Retail brands show stronger intension to settle in basement levels with metro access as well.