Despite pandemic headwinds, mid- to high-end retailers in Guangzhou are still expected to gain from the spending power of affluent individuals and the overall strength of local consumption in one of China’s largest cities, according to a report from Savills.
The recent Covid-19 outbreak at the start of Q4 2022 and corresponding Covid prevention measures are expected to generate further impacts on retailers’ businesses.
“This, along with approximately 433,000sq m of new supply in Q4 2022 is forecast to bring more pressure to landlords or properties’ operators in the short term, weighing on asset performances,” Savills said.
According to the Guangzhou Statistics Bureau, local retail sales in the first nine months of 2022 totalled $111.22bn, up 3.1 per cent year-on-year.
“Despite concerns surrounding their business operations and store openings amidst the current economic and covid circumstances, retailers kept their confidence in the affluence and overall spending power of local consumers,” the report stated.
