Shanghai retail thrives on first stores, fresh experience

Shanghai's retail scene continues to evolve, with global fashion brand H&M launching its new flagship, the House of H&M, as a fresh example of the city's dynamic consumer landscape and thriving "first store economy".

Draped in striking "China red", the new space offers more than shopping, with China's first H&M Home, a cafe, and a flower shop. It also includes H&M&SPACE for high-end collections and exhibitions, along with the brand's first professional livestream studio hosting celebrities and stylists.

This bold retail reinvention reflects a broader transformation in Shanghai's retail landscape.

From January to July this year, the city welcomed 554 new first stores, including 11 global or Asia debuts and 85 national or Chinese mainland firsts.

Brands from China, Japan, France, Italy, the United States, South Korea, the United Kingdom, and Germany are all choosing Shanghai as their launchpad into the Chinese market.

Three key trends stand out:

Experiential retail

Brands are turning stores into interactive spaces. Sportswear label HOKA opened its first global experience center in Xintiandi earlier this year, complete with a full-body performance testing lab, foot pressure scanners, and 3D running analysis, bringing pro-level services to everyday runners.

Value for money

Home furnishings retailer Ikea is targeting China's silver economy with senior-friendly discounts and more than 150 new low-price items. German grocer ALDI has slashed prices by up to 30 percent on over 50 daily-use items in Shanghai.

Online integration

On Sept 8, apparel company Uniqlo announced a partnership with e-commerce giant JD.com, launching an early online release of its 2025 fall/winter line. At House of H&M, weekly livestreams seamlessly connect in-store events with digital shoppers.