Top Chinese Luxury Mall SKP to Open in Guangzhou
SHANGHAI — Known for operating the world’s most profitable mall SKP Beijing, the luxury retailer SKP has set its eyes on the Guangzhou market.
At the closing ceremony of the eighth Guangzhou Annual Investment Conference China and the first Global Unicorn CEO Forum, SKP parent company Beijing Hualian Group signed the contract with the Guangzhou government to seal the deal.
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“The meeting this year has shown us Guangzhou’s immense growth momentum,” said Changjun Zhu, chief development officer at SKP. “We are optimistic about the potential of the ‘Millennium commercial capital’ and its vitality as a modern city.”
The Guangzhou SKP will be the shopping mall operator’s first outpost in the Southern China region, and its first in a first-tier city outside of Beijing. An opening date is yet to be revealed.
Luxury shopping malls, including MixC and Taikoo Li, also unveiled plans to open malls in Guangzhou at the conference.
According to local media outlets, the Guangzhou SKP will be located in the downtown Machangdi area in the Tianhe district, as a part of the government’s plan to revive the dormant commercial area. Currently dominated by furniture and automobile vendors, the 4.1 million-square-foot location was Asia’s second-largest horse racing arena in the ’90s.
As the provincial capital of Guangdong and the third largest city in China, Guangzhou’s luxury retail market has been dominated by Taikoo Hui Guangzhou in recent years.
In 2021, sales at Taikoo Hui Guangzhou rose 33 percent year-over-year, the highest of all Swire Properties-owned retail projects in mainland China. Due to the resurgence of COVID-19, sales slid 7 percent, according to the company’s 2022 half-year report.
Celine opened its first Guangzhou outpost at Taikoo Hui Guangzhou in July, while Balenciaga is set to open its first store in Guangzhou at Taikoo Hui on Sept. 30, according to the brand.
According to local retail insiders, SKP’s new venture in Guangzhou means more luxury players will likely enter the market.
SKP operates two shopping malls, in Beijing and Xi’an. Later this year, SKP also has plans to open in the southwest retail hub of Chengdu. A Wuhan SKP is set to open next year.
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