E-commerce is biting into a bigger chunk of overall retail sales leaving in its wake vacant malls amid a staggering oversupply.
China is now the undisputed biggest e-commerce market in the world and this trend is anticipated to grow by leaps and bounds in the next five years, cornering an even bigger share of total retail sales.
In its wake are more ghost malls and closures – it has been estimated that one-third of China’s shopping malls will close down in 5 years due to online shopping and oversupply.
Between 2012 and 2015, 138 department stores, 262 supermarkets and 6,209 sports stores have closed down. China has nearly 4,000 shopping centers, three times more than the US. Estimates say another 7,000 shopping malls will open by 2025, bringing the total number to over 10,000.
Back in 2014, China’s shopping mall completions made up 44% of the total global number. In the pipeline are even more malls, representing a staggering 60% of the total worldwide.