SZ's 'first-store economy' booms with 145 new openings

The Galeries Lafayette store at UpperHills in Futian District. It was the brand's first store in South China and its first concept store in China. File photo

Shenzhen made significant inroads into its “first-store economy” in the third quarter of the year with domestic and foreign brands opening 145 of their debut outlets in Shenzhen, some of which are the first in South China or even in China.

Considered as a barometer for the city’s business environment and spending power, the number of “first stores” opened by branded businesses has been seen of strategic importance and gauged regularly in Shenzhen since the city unveiled a goal to build itself into an international consumption center in 2020. These “first stores,” mostly in shopping malls, are mainly opened by consumer brands in the catering, clothing, fashion and lifestyle sectors.

According to Winshang, an industry data provider, the number of such debut stores that opened in Shenzhen in the third quarter of this year was at a record high since 2020, representing a 105% increase from a year ago and a 93% rise from a quarter earlier.

Among the 145 new stores, 15 were the first in China, 25 in South China, three in Guangdong Province and 102 the first in Shenzhen.

In terms of the brands’ origins, 120 brands were from the Chinese mainland, five from Hong Kong or Macao, and 20 from the United States, France, Italy, Canada, Sweden, the United Kingdom or other overseas countries and regions. A total of 58 internationally renowned brands have made their debut in Shenzhen since the beginning of the year, indicating Shenzhen’s increasing appeal globally.

Thanks to an incentive Futian rolled out earlier this year, the district continued to lead the city with a total of 42 stores in the third quarter, followed by Bao’an with 36 and Nanshan with 29. Luohu came fourth with 15, while Bao’an, Longhua and Guangming districts received 10, six and four new stores respectively.

The top three areas for such store openings are Futian’s CBD commercial district, Bao’an’s central commercial district, and Luohu’s Caiwuwei commercial area.

Among the businesses that branched out in Shenzhen during the third quarter, 31 were casual dining brands, 40 Chinese dining brands, 21 apparel brands, 22 fashion and lifestyle brands, 20 exotic food and beverage brands, four lifestyle service brands, four sports and recreation brands, and three children’s brand.

Shenzhen’s “first-store economy” strategy has helped stimulate consumption. Data show that Shenzhen’s total retail sales increased 7.9% to 764.70 billion yuan (US$110.83 billion) in the first three quarters of the year from a year ago.