Ungh..... Reuters gets it glaringly wrong:
Why don't they fact check? Online shopping impacting brick and mortar? Guess what percent of retail sales in China is brick and mortar? 50%? 25%? How about 6%.
The fact that China used funny money, malcredit to overbuild malls tell us only they overbuilt malls. Where retail should be can only be known at the microlevel, where I imagine the match is quite good.
Do the big boys worry about the returns on their malinvestments? Probably, but it's no concern to us what happens to them.
Feel free to forward this by email to three of your friends.
Rising vacancy rates and plummeting rents are increasingly common in Chinese malls and department stores, despite official data showing a sharp rebound in retail sales that helped the world's second-largest economy beat expectations in the third quarter.
The answer to that apparent contradiction lies in the rising competition from online shopping and government purchases possibly boosting retail statistics. Add poorly managed properties into the equation and the empty malls aren't much of a surprise.
Why don't they fact check? Online shopping impacting brick and mortar? Guess what percent of retail sales in China is brick and mortar? 50%? 25%? How about 6%.
The fact that China used funny money, malcredit to overbuild malls tell us only they overbuilt malls. Where retail should be can only be known at the microlevel, where I imagine the match is quite good.
Do the big boys worry about the returns on their malinvestments? Probably, but it's no concern to us what happens to them.
Feel free to forward this by email to three of your friends.
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