Department Stores & Shopping Malls in China: Market Size, Businesses & Forecast 2026

The department stores and shopping malls industry in China comprises physical retail venues structured around multi-branded merchandise, tenant leasing, and consumer experience formats. The industry is currently executing a strategic shift from traditional transactional spaces to lifestyle-centric experiential centers in response to intensive e-commerce competition and evolving consumer demand. Reflecting this broader macroeconomic transition, the National Bureau of Statistics (NBS) reported that total retail sales of consumer goods in China reached 50.12 trillion yuan in 2025, expanding by 3.7 percent year-on-year, while service-related retail sales outpaced physical goods with a 5.5 percen

Industry snapshot

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What does the Department Stores & Shopping Malls in China industry cover?

This industry covers commercial retail operations where consumer goods and recreational services are marketed through unified physical complexes. It primarily encompasses traditional department stores operating under direct-buy or concessionary models, alongside modern, large-scale shopping malls that utilize master leasing structures for retail, dining, and lifestyle tenants.

• •Classified under the official GB/T 4754-2017 national economic standard.
• •Combines physical product categories such as apparel, cosmetics, and jewelry with commercial services.
• •Excludes standalone hypermarkets, specialized specialty stores, and pure-play digital commerce operators.

Who operates in the industry and how is it structured?

The market features a dual composition of traditional department stores adapting to concession arrangements and commercial property developers managing regional or nationwide shopping mall networks. Operators act as aggregated platforms, relying heavily on third-party brand relationships, tenant management systems, and centralized foot-traffic monetization.

• •Concession retail contracts dominate the traditional department store layout.
• •Shopping mall operators leverage gross leasable area (GLA) models with fixed rent plus turnover variables.
• •Major operations are heavily concentrated within tier-1 and tier-2 urban clusters, though expansion into tier-3 and tier-4 municipal centers is rising.

What drives demand in the industry?

Industry growth is tightly correlated with rising urban disposable income, government-led domestic demand stimulus, and a structural shift toward experiential and service-based out-of-home consumption. Government consumer goods trade-in frameworks and localized consumption festivals have provided additional operational support for retail venues.

• •Per capita disposable income reached 43,377 yuan in 2025, growing 5.0% year-on-year according to the NBS.
• •The national 'Two New' policy package accelerated commercial hardware upgrades and consumer electronics trade-ins during 2025.
• •Spending on services reached 46.1% of per capita household consumption in 2025, prompting venues to expand entertainment and dining layouts.

Who are the notable companies in the industry?

The marketplace is highly fragmented, localized, and characterized by intense competition between state-backed commercial groups, domestic private real estate conglomerates, and multinational retail operators. Entities compete aggressively on prime real estate acquisition, digital ecosystem integration, and exclusive tenant portfolios.

• •Wangfujing Group Co., Ltd. operates as one of the prominent state-controlled national department store networks.
• •百联集团有限公司 (Bailian Group Co., Ltd.) maintains dominant regional scale within the eastern China retail landscape.
• •Dalian Wanda Commercial Management Group Co., Ltd. manages extensive nationwide footprints under its Wanda Plaza brand.
• •Hang Lung Properties Limited and Wharf Real Estate Investment Company Limited represent major Hong Kong-listed developers focusing on luxury-tier shopping malls.

What are the recent trends and outlook?

Physical retail channels are rebalancing toward omni-channel frameworks and high-margin product categories to counter digital commerce models. Venues are aggressively integrating digital technologies and experiential concepts like the 'silver economy,' ice-and-snow tourism pop-ups, and debut-economy brand launches.

• •Online retail sales of physical goods rose 5.2% in 2025, accounting for 26.1% of total retail sales.
• •NBS data showed a sharp recovery in high-end segments at retail enterprises above designated size, with gold, silver, and jewelry climbing 12.8% in 2025.
• •Cosmetics retail sales reversed prior declines to post a 5.1% full-year expansion in 2025.

How is the industry regulated?

Operators must comply with strict national regulations spanning commercial property development, antitrust behavior, consumer protection rights, and fire safety protocols. Regulatory enforcement increasingly targets fair market competition, leasing transparency, and structural safety guidelines in large-format public spaces.

• •Monitored under the Ministry of Commerce of the People's Republic of China (MOFCOM) retail guidelines.
• •Subject to the Anti-Monopoly Law of the People's Republic of China regarding concentration of undertakings and tenant leasing clauses.
• •Enforced via local branches of the State Administration for Market Regulation (SAMR) to ensure consumer product compliance and safety.

Government, statistical and trade sources used for this Claight analysis.

• National Bureau of Statistics of China 2025 Annual Economic Performance Release (January 2026) ·
• State Council Information Office of the People's Republic of China Briefings (2025-2026) ·
• HKUST Li & Fung Supply Chain Institute China's Department Stores Report 2025-2026 ·
• China Chain Store & Franchise Association (CCFA) Industry Disclosures 2025