China Chain Store & Franchise Association’s latest survey of major shopping centers shows a generally mild and stable recovery for foot traffic in the first half of this year.
The survey collected questionnaire responses from 53 companies; the sample companies operate a total of 1,978 shopping centers, including outlets, accounting for approximately 25.7 percent of the national market.
A total of 75.5 percent of the stores reported an increase in footfall, with 43.4 percent of these falling within the 5–10 percent range; only 13.2 percent of companies experienced a decline in footfall, which was predominantly slight.
This indicates that footfall at shopping centres is showing an overall trend of moderate growth.
As many as 69.8 percent of stores saw an increase in the proportion of revenue generated by members (membership revenue ratio), whilst 43.4 percent saw an increase in the proportion of their online sales (with a further 49.1 percent remaining unchanged); investments made by various companies in areas such as membership program development and targeted marketing are beginning to yield positive returns.
In the first half, local shopping centers has largely saw a recovery of footfall, yet there was a marked trend of volume growth accompanied by a decline in value, as footfall growth outpaced growth in sales and rents, with pressure on average spend per customer emerging as the key challenge.
Shopping malls’ operational focus has shifted from attracting footfall to improving conversion rates; membership programs have yielded notable results, but how to translate member engagement into higher average spend per customer is the key challenge for the next phase.
Revenue structures have diversified, with strong growth in diversified business income, whilst the proportion of non-rental revenue remains to be further increased.
The overall shopping mall sector has entered a period of profound restructuring, with over half of companies experiencing an increase in brand turnover rates, and the optimization of retail mix has become a standard competitive strategy.
