China’s traditional retail industry to remain weak as shoppers stay home, says Fitch
The top 50 Chinese retailers saw sales fall by 1.9 per cent in the first nine months of the year, while online sales jumped 26.1 per cent
A decline in China’s traditional retail industry is set to continue amid sluggish sales and changing consumer habits, analysts say.
The outlook for the sector - which includes department stores and other bricks-and-mortar shopping outlets - is negative, with demand likely to “remain muted” into 2017, a Fitch report said on Tuesday.
In the first nine months of the year, the top 50 domestic retailers saw sales fall 1.9 per cent, representing a slowdown in growth of 2.6 per cent compared to the same period of 2015, according to the China National Business Information Centre.
“Not only are shopping preferences changing, but declining consumer sentiment affected retail sales in several consumer categories in 2016,” Fitch analysts Yee Man Chin and Cathy Chao said in the report.
We expect persistent weak sales for traditional retailers as consumer preferences evolve
“We think the rapid change in shopping formats will increase competition, and we therefore expect persistent weak sales for traditional retailers as consumer preferences evolve.”