In recent news from Dajiyuan on July 24, 2024, the Chinese economy continues to decline with weak domestic consumption. A well-known shopping mall, Longmei Town in Shanghai, has announced its closure on August 1st. In the first half of this year alone, incomplete statistics show that 6,882 stores have shut down across China, affecting over 100 companies.
On July 23, the Shanghai “Meilong Town Plaza” announced on its official WeChat account that all businesses and tenants within Meilong Town Plaza (including the mall, office building, and underground parking lot) except for the United States Consulate General in Shanghai will cease operations starting from August 1, 2024.
Established in 1997 on Nanjing West Road in Shanghai, Meilong Town Plaza is located in one of Shanghai’s top commercial districts, forming the “Mei-Tai-Heng Golden Triangle” alongside other high-end malls like Grand Gateway and Citic Square. It has been a symbol of luxury shopping in Shanghai.
One of the main tenants of Meilong Town Plaza, Isetan Department Store, has been serving Shanghai residents for 27 years. On June 30, 2024, the Shanghai Meilong Town Isetan Department Store ceased operations as its lease expired. Less than two months later, news of the closure of Meilong Town Plaza emerged.
A resident of Shanghai, Mr. Hu, told Free Asia Radio that prominent locations in Shanghai like the Golden Crossroads and West Tibet Road on Nanjing Road have experienced a significant decline in businesses. He mentioned that many restaurants have closed down, and several large supermarkets in his neighborhood have shut their doors as well.
Mr. Hu reflected on the changes, saying, “Nanjing Road in Shanghai is China’s first commercial street and one of the top in Asia. The Plaza 66 on Nanjing Road closed in 2022. Huaihai Road, formerly known as Xifei Road, is also lively, seen as even more upscale than Nanjing Road in the eyes of locals and foreigners. There used to be many foreigners here, but now the malls are nearly empty, desolate.”
“The problem lies in the lack of purchasing power among the general population,” Mr. Hu continued. He pointed out that while most Chinese citizens struggle financially, some in Shanghai do have money but are hesitant to spend due to the overall economic downturn, leading to restrained consumption.
Chen Songxing, Director of the Center for New Economic Policy Research at Donghua University and a former Shanghai resident, shared with Free Asia Radio that Shanghai, as a first-tier city, is performing relatively better compared to Beijing, Shenzhen, Guangzhou, and other second-tier cities.
On July 19, the website “Investment Platform” under Qingke cited an incomplete survey by Yilan Business, stating that in the first half of 2024, at least 6,882 domestic stores in China announced closures, impacting over 100 companies. Among them are major retailers like Walmart, Yonghui Supermarket, RT-Mart, Hema Fresh, leading food and beverage chains such as Luckin Coffee, and HEYTEA.
The closed stores include 498 supermarkets, 13 department stores, over 6,000 restaurants, and over 200 stores in clothing, education, and other sectors.