China to have more than 7,000 malls by 2025

Guo said one source of trouble lies in Chinese shopping malls' geographical distribution.

He cited Shanghai for being better than most places at designing the centers and making sure large malls are both spread throughout the city and supported by a network of smaller shops.

In contrast, Beijing and many other cities lack a comprehensive plan for commercial operations.

Some cities are not suited to the construction of large shopping malls. But local governments often go ahead with building projects anyway.

As a result, many recent projects undertaken to renovate old commercial districts in Chinese cities have been failures, especially in their mixing of new designs with traditional settings, Guo said. Those misguided attempts have both destroyed cultural treasures and repulsed long-standing customers, Guo said.

Third- and fourth-tier cities do have a need for shopping centers. Still, such places should be smaller than shopping centers in megacities.

"I would say 50,000 square meters (of floor space) is quite enough," Guo said. "Both those cities' population density and purchasing power are relatively small."

At a time when online retailers are increasingly taking business away from physical stores, malls should try even harder to differentiate themselves by building a solid position in their own markets, taking advantage of their strengths and improving their customer service.

Guo said shopping malls should pay more attention to their customers' experiences and try to not only sell them goods but also provide meals, movies and comfortable settings. Some mall managers have already done this by devising a variety of weekend offerings for customers and their families, Guo said.

"Who can take away your sales if you can draw in entire families?"

Contact the writer at liwoke@chinadaily.com.cn

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