East China Retail Markets: rebound; brand adjustments accelerate
In H2 2021, the retail market experienced a large influx of new supply. Rents rebounded slightly, rising by 0.3 percent HOH and vacancy fell slightly by 0.2 percentage points HOH.
New Energy Vehicle brands and multi-function F&B brands expanded rapidly. We recommend shopping centre owners focus on attracting new brands. Tenants should pay attention to Generation Z (those born 1995-2009), focusing on the social attributes of offline stores.
Over the next five years, we expect large new supply in non-prime areas to push up the vacancy rate. We also expect new supply to encourage more upgrades and tenant adjustments.
East China Retail Markets: rebound; brand adjustments accelerate
