Wanda Closes Shopping Centers

WSJ: Wanda to Close Some Stores, Exit Karaoke
There are immense changes in consumption habits in China, and large-scale retailers aren’t immune, Qu Dejun, senior vice president of Dalian Wanda Commercial Properties Co., said Monday.

“Some Wanda department stores are making losses, and making these adjustments is normal business behavior,” Mr. Qu said in an emailed statement to The Wall Street Journal.

The company is still in the process of restructuring and has yet to determine the number of department stores it will close.

Wanda said it is divesting its karaoke business, as the profit margins of managing a chain of karaoke outlets–KTV lounges, as they are known— has thinned due to the country’s policy environment.

The Communist Party’s continuing crackdown on corruption has affected luxury retailers, high-end restaurants and hotels as well as the karaoke business, as Beijing seeks to curb lavish spending by officials.

The Beijing-based company, which is led by billionaire Wang Jianlin, manages more than 100 Wanda Plazas around China. Those shopping malls, which focus on affordable fast-fashion brands, are a household name.
Chinese reports say Wanda will close at least 40 shopping centers, which is at least 40% of the properties. 万达关闭40多家百货 未来将转型为体验式业态

If China is rebalancing to a consumer economy and one of the largest operators of shopping centers is closing 40% of their properties, you'd expect profits of online retailers to be going through the roof.

Or maybe the economy is in trouble.

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