Key facts
- High-end shopping mall operators in China are expanding their footprints.
- SKP Wuhan's "K Avenue" recorded 6.3 billion renminbi ($937 million) in sales in its first 18 months.
- SKP Wuhan attracted over 30 million shoppers in its first 18 months.
- Swire Properties' Shanghai HKRI Taikoo Hui saw sales rise 82.2% year-on-year in the first half of 2026.
- Beijing's Taikoo Li Sanlitun recorded 63.2% sales growth in the first half of 2026.
- Rental income for Swire Properties' mainland retail portfolio increased by 29% in the first half of 2026.
High-end shopping mall operators in China are expanding their physical retail spaces and updating formats to attract shoppers, defying the country's broader retail slump. Developers are focusing on integrated retail and lifestyle experiences.
SKP Wuhan is set to unveil its retail promenade "K Avenue" in October, its first central China project. In its first 18 months, the department store recorded 6.3 billion renminbi ($937 million) in sales and attracted over 30 million shoppers, according to local media reports.
In Shanghai, a competitive market, developers are pursuing exclusive brand partnerships. The second phase of Zhangyuan, comprising 26 historic buildings, is slated to launch later this year, integrating with HKRI Taikoo Hui and One Shanghai to form a mixed-use urban cluster.
Hang Lung's Plaza 66 is expanding with a new 72,650-square-foot pavilion, aiming to become a broader lifestyle and community hub. The new space will feature brands including Brunello Cucinelli, Dunhill, B1ock, Huawei, Santa Maria Novella, and Wooyoungmi.
Thomas Thompson of CBRE noted that developers must think beyond brand mix to create ultimate retail experiences, balancing private experiences with public interaction. He added that brands are being more careful with capital expenditure, focusing on fewer, better stores and creating experiences.
Brands are increasingly favoring pop-up stores over long-term commitments due to market uncertainty and fast-changing trends. HKRI Taikoo Li is preparing to host a NikeSkims space, and Alo is reportedly considering a long-term pop-up at Zhangyuan.
Swire Properties reported strong performance in the first half of 2026, with sales at Shanghai's HKRI Taikoo Hui rising 82.2% year-on-year and Beijing's Taikoo Li Sanlitun recording 63.2% growth. Rental income increased by 29% and 16% respectively. However, these strong results are attributed to major upgrades and unique destination attractions, not a broad luxury market recovery.