Shanghai Is Finished. Physical Stores Are Closing Down.1.94 Million Companies Shut Down in 40 Cities

Analyzing the latest annual reports of Shanghai’s three long-standing department store companies - Jiubai, Xujiahui, and New World - all of them have experienced a significant decline in their performance. Specifically, Shanghai Jiubai's revenue fell by 30.51% year-on-year, and net profit attributable to the parent company fell by 48.95%. Xujiahui's revenue fell by 22.33% year-on-year, and its net profit attributable fell by 76.30%. New World's revenue in 2022 fell by 27.07% year-on-year, and its net profit attributable to the parent company fell by a staggering 174.90%. According to a survey conducted by the Industrial Research Center of the Beijing-based "Finance and Economics" magazine, in 2022, over 1.94 million companies were deregistered in China's 40 wealthiest cities, accounting for approximately 7% of the total. These 40 cities have a permanent population of 427 million, approximately 30% of the nation's total population.