Industry Analysis & Industry Trends
Over the five years through 2014, revenue for the Department Stores and Shopping Mall industry in China has been growing 12.2% per year to an estimated $193.6 billion. With the implementation of the new income tax law for individuals in September 2011, per capita disposable income and consumption power has been growing. In 2014, revenue growth is expected to be 7.7%.
Establishment numbers (i.e. retail store locations) are estimated at 5,274 in 2014, up 3.2% for the year. However, the number of enterprises is set to fall 5.2% to 601 due to increased merger activity and unprofitable companies exiting the industry. Industry profitability is estimated at 5.0% of revenue. Before rebounding in 2010, profit was low, at between 2.0% and 3.0%.... purchase to read more
Industry Report - Starting a New Business Chapter
Department stores, and particularly shopping malls, require large investments in fixed assets. Stores provide comfortable shopping environments and invest in fixtures and fittings. In general, department stores usually have a commercial area of between 5,000 to 30,000 square meters, while shopping malls usually have commercial areas of more than 30,000 square meters. Large capital requirements raise barriers for small players to enter the industry.
Considering the relatively low industry profitability and large initial investment, the investment recovery period is relatively long. In general, the investment recovery period of a department store is about five years, while the period of a shopping mall is more than seven years... purchase to read more