China's Retail Sector Shifts to Omnichannel Strategies Amidst Moderating Store Expansion
Retailers in mainland China are increasingly adopting omnichannel strategies, utilizing digital platforms to reach consumers beyond their traditional store catchments. This shift is highlighted in CBRE's Asia Pacific Retail Trends Q1 2026 report, which notes a reduction in the need for aggressive physical expansion in lower-tier cities. Instead, brands are optimizing their store networks by focusing on high-efficiency locations. Leasing sentiment is improving in tier I cities, driven by both domestic and international retailers. The geopolitical uncertainty in the Middle East has prompted some global brands to accelerate their China-focused strategies, while the recovery in international tourism is bolstering retail demand. Prime retail assets in core urban locations maintain high occupancy levels, whereas suburban areas and lower-tier cities face pressure from ongoing supply additions, affecting rents and vacancy rates. 
