SZ's first downtown duty-free store to open in late August

Shenzhen’s first downtown duty-free store is set to open at the end of August, the Shenzhen Special Zone Daily reported yesterday.

The 3,000-square-meter store, located on the ground floor of the UpperHills shopping mall in Futian District, will sell goods that are exempt from the domestic value-added and consumption taxes, offering travelers notable savings, the store’s general manager Zhang Haitao told the paper.

A computer-generated rendering of the upcoming downtown duty-free store at UpperHills shopping mall in Futian District. Courtesy of UpperHills

Merchandise categories include beauty and skincare, watches and jewelry, luxury liquors and high-end spirits, fashion, and electronics. In addition to global luxury names, the store will feature time-honored Chinese brands with intangible cultural heritage credentials and high-quality Shenzhen-made tech products.

To create an immersive retail environment, the store will include a whisky-themed gallery, an in-store spa, and a tech experience zone.

Compared to traditional port-based duty-free stores, this in-town store promises longer hours of operation, a more comfortable shopping environment, and a broader product range.

“At present, Shenzhen’s duty-free stores are only located at border checkpoints and the airport. After the in-town store opens, consumers will be able to shop up to 60 days before departure, and the product range will be far broader,” Zhang said.

The retailer will use an innovative “buy in town, collect at the airport or cruise terminal” model. Compared with the traditional refund-upon-departure approach, the store’s duty-free prices are expected to be 11–25% lower than retail equivalents.

Shoppers walk through a bustling corridor at UpperHills shopping mall in Futian District. Daily Sunshin

Last August, six government ministries, led by the Ministry of Finance, approved a pilot program authorizing eight Chinese cities to open one downtown duty-free store each. According to the official statement, these stores serve travelers (including, but not limited to, Chinese nationals) who will depart China by air or international cruise within 60 days.

Travelers can make purchases at these stores in advance and pick up their goods at their port of departure. These downtown stores are mainly intended to sell portable consumer goods, with a particular emphasis on fashionable domestic brands that reflect Chinese cultural heritage.

In the first half of this year, non-cash spending by international visitors in Shenzhen exceeded 11.8 billion yuan (US$1.64 billion), up 35% year on year. South Korea, the United States, and Singapore were the top three source markets, together accounting for nearly 30% of inbound spending.