Emerging brands expand in Shenzhen as consumers shift to lifestyle categories

Flagship openings and store upgrades also rise to enhance customer experience.

Retail leasing demand in Shenzhen stayed active in the fourth quarter of 2025, led by outdoor sports, consumer electronics, and art toy brands, according to JLL’s Asia Pacific Retail Market Dynamics Report.

Flagship store openings and store upgrades increased as brands focused on improving customer experience.

Traditional retailers faced slower expansion due to shifting consumer preferences, whilst new F&B concepts such as specialty bistros and Chinese streetwear brands expanded quickly.

A new light-asset retail project developed by China Resources Land launched in Shenzhen’s suburban areas during the quarter. The project introduced multiple regional-first stores and quickly gained traction, supported by strong foot traffic from surrounding residential communities and achieving high occupancy levels.

Across the city, tenant mix changes had limited impact on overall vacancy. Malls with higher vacancies improved leasing by adding supermarkets and entertainment tenants. Citywide vacancy declined 0.2 percentage points quarter-on-quarter.

Heavy retail supply in 2025 intensified competition. Prime malls maintained stable performance and continued attracting premium brands, whilst non-core malls relied more on entertainment tenants to fill space. As a result, rents fell 2.7% quarter-on-quarter.

Shenzhen will continue consumption stimulus in 2026, including subsidies and trade-in programs, and is expected to use events such as concerts and sports to support retail demand, especially for F&B and sports goods.

About 250,000 sqm of new retail supply is expected in the next 12 months. Whilst supply is slowing vs 2025, vacancy and rents may remain under pressure due to still-weak consumption recovery.