Sozzi: 7 Alarming Stats on the Great China Mall Explosion
NEW YORK (TheStreet) -- U.S. retail sales data are out today, but let's talk some China. Western retailers continue to be obsessed with trying to sell merchandise and their lifestyles to the Chinese. Hey, can you blame them for going full force in opening stores in the country...
- 1.3 billion live in Mainland China.
- 50% of Chinese live in urban areas; this figure will balloon to 70% by 2035.
- 90 cities in China have a population of 1 million or more people.
- 10% of the population lives on $1.00 a day compared to 64% 35 years ago.
- Total population of China is projected to reach 1.45 billion by 2028.
As an example of this obsession, Walmart
Although the opening of malls will present near-term sales opportunities for Western retailers such as Nike
Here are the alarming stats to know:
- 150 new malls opened in the top 20 Chinese markets in 2013.
- Mall sizes are increasing, rising to an average size of 262,000 square feet in 2013 from 216,000 square feet in 2005. For visual reference: the average size of a Walmart store is 120,000 square feet.
- Up to 3 million meters in new retail space in Shanghai will go live in the next three years, 3-4 million in Chengdu during the same period. These numbers exclude the rampant activity occurring in third and fourth tier cities in China.
- More than 50% of the malls set to emerge from the 82 million meters of projects under construction globally reside in China.
- The area devoted to malls in Beijing, Shanghai, Guangzhou, and Shenzen will increase by 40% in 2015. Space in 16 smaller cities is poised to double.
- 45 new large malls will open in Beijing in 2014.
- From 2014 through 2017, roughly 2,500 new malls in China will open.
Madness, plain and simple.
-- By Brian Sozzi CEO of Belus Capital Advisors, analyst to TheStreet.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.