In 2017 and further Chinese real retail sales should stabilize at around +9% growth, slightly below the double-digit long-term average. Retailers are betting on an online-to-offline (O2O) strategy to leverage opportunities offered by the rise of a new middle class.
Publicly listed Chinese retailers saw a notable decrease in their debt ratios. Net gearing declined to 42% in 2015-16, down from 51% (2014). Profitability has remained high at 10.5%.
Electronics and online retailers should keep the momentum going, while the luxury segment is set to restructure, due to the impact of the anti-ostentatious policy.