In 2024, the Chinese economy has been sharply declining, leading to a widespread closure of physical stores across the mainland. Many struggling businesses were hoping for a better turnout during the “Golden Week” holiday, but their expectations were shattered. Some small shops found themselves with no customers at all after reopening for the holiday. A despairing store owner in Shenzhen, who has been operating for years, expressed that keeping the business alive feels like a losing battle, as running the shop only leads to financial losses.
A restaurant owner in Zhejiang, named Afeng, shared his observations after shutting down his business. He contacted two friends who also expressed bewilderment over the dismal state of physical retail this year. People engaged in physical stores all noted the particularly challenging business environment compared to previous years, with a significant decline in foot traffic and consumer spending. Walking around, they noticed numerous shops along the streets closing down one after another.
Afeng mentioned that his own restaurant faced struggles, with a noticeable decrease in customers coming for meals due to fewer people dining out in the industrial area where his store is located. During the “Golden Week” holiday, the footfall in his establishment drastically decreased, leading to meager daily earnings compared to previous years when factory workers would contribute to the business.
He disclosed that conversations with customers revealed the dwindling overtime opportunities in factories and the possibility of early dismissals towards the end of the year. Many surrounding physical stores were on the verge of collapsing, unable to afford rent, and acquaintances lamented the unprecedented difficulty faced by brick-and-mortar businesses this year, struggling to pinpoint the exact reasons behind the downturn.
In Kaifeng, Henan, street vendor Xuhaiyan bemoaned the poor business she experienced during the “Golden Week” holiday period as a snack seller. She described the empty streets, lack of customers, and her struggle to make ends meet, with no income coming in, leaving her in dire straits.
Reflecting on the situation, Xuhaiyan detailed the lack of customers and the personal toll it took on her well-being, resorting to consuming the unsold food supplies to stave off the cold and feel some warmth amidst the desolation.
Furthermore, a Shenzhen blogger known as “Keke” shared a heartbreaking account of a neighbor who regretted paying a year’s worth of rent in advance amid deteriorating business conditions. With each passing day, foot traffic dwindled, and the store witnessed dwindling sales, pushing the store owner to contemplate giving up. The neighbor’s struggle to keep the business afloat weighed heavily on them, even more so than being unemployed, as the financial losses mounted.
Additionally, a business operator in Liaoning, Fangfang, shared a colleague’s disappointing experience of running a store for a year and a half, enduring significant financial losses. Facing the end of the lease agreement and with no profits in sight, her colleague decided to close shop, regretting the time and money invested in the venture.
Fangfang emphasized the oversaturation in the retail industry, advising against starting a physical store due to the challenging market conditions. With numerous businesses changing hands or closing down, the survival of physical stores in such a bleak landscape seemed uncertain, with many struggling to sustain operations.
An Anhui-based blogger specializing in the tobacco and tea supply chain, known as “Taisheng Tobacco and Tea Supply,” shared her struggle as a cigarette store owner. She noted a sharp decline in sales of previously popular brands, putting a strain on the store’s finances.
In conclusion, the stories from various entrepreneurs and shop owners across China portray a bleak reality faced by physical stores amidst economic turmoil, with many questioning the viability of their businesses and expressing concerns over the future.