Shopping: Brick and mortar still matters

Shanghai retail stores learn to offer unique value in an ever more digital world

Women dressed in elegant qipao and highheels with dainty bags in their hands stand in front of a green and white livery tram along Shanghai's Nanjing Road, colorful neon signs flickering in the background.

But nothing in this scene is actually real. The women are cardboard figures. The tram is a replica. It's above ground and indoors inside a chic new space called Lane 100 on the seventh floor of No 1 Shopping Center on East Nanjing Road, a well-known shopping area in the country.

"It's thrilling to see popular necessities from the 1900s here, including enamel mugs, old-school Chinese postman's bikes and manual sewing machines," says Ke Xiaojie, a Shanghai resident in her 50s.

"I also love the brick and mortar shikumen-style wall design, and how the tunes of Shanghai Nights (a classic song of old Shanghai) are being played in the background, calling back my childhood memories."

Dedicated to selling nostalgic goods, Lane 100 is just one of the new offerings in the mall, which reopened in November after 18 months of renovation. The makeover project saw the old No 1 Shopping Center merge with the former Orient Shopping Center just across Liuhe Street.

The move is aimed at drawing younger consumers, as evidenced by the drastic change in featured brands. According to the mall operator, more than 70 percent of the old brands that were once located in the two malls have been replaced with those currently in vogue. Meanwhile, the food and beverage options have been increased and more space has been allocated for lifestyle amenities such as hair salons, exhibition zones and child care centers.

According to Fan Liqun, the manager of the shopping center, the average age of its consumers has dropped by about 20 years. Today, the majority of those who visit the mall are between 20 and 45 years old.

Formerly known as Da Sun Department Store, the 82-year-old mall has, like many others in the city, embraced the sweeping changes in the retail sector, transforming from a retail hub to a lifestyle center that is focused on providing real-time experiences for consumers.

"No 1 Shopping Center was the mall with the highest sales for 14 consecutive years in Shanghai," says Fan. "But the transition it has undergone is obviously inevitable in this day and age. The renovation represents a new evolution of traditional department stores as they try to adapt to the new retailing era."