Shanghai saw retail spending, both online and offline, reach nearly 20 billion Yuan (US$2.78 billion) between 31st May and 1st June, marking a 4.1% increase compared to the Dragon Boat Festival holiday period from 8th-9th June last year, according to the Shanghai Commerce Commission.
Spending by foreign tourists eligible for VAT refunds more than doubled, with both the spending amount and tax refund value rising by 1.1 times.
New policies enabling foreign tourists to receive immediate tax rebates at the point of sale have helped drive an increase in their retail spending in recent months, Shine News reports.
Shanghai’s night-time economy also stood out, according to data from Meituan. Evening spending by both residents and tourists rose by 20.8% year-on-year, while total catering expenditures jumped 38%, and tourism-related spending surged by 53%.
Most visitors to Shanghai came from nearby Yangtze River Delta cities like Suzhou, Hangzhou, and Nanjing, as well as major hubs such as Beijing and Shenzhen.
According to the Consumer Market Big Data Laboratory Shanghai, under the city's commerce commission, 19 major shopping areas generated a combined 1.36 billion Yuan in sales. The use of shopping coupons and promotional incentives also played a key role in boosting consumer confidence and spending.
Retail spending in downtown areas like Wujiaochang in Yangpu District and Xintiandi in Huangpu District rose by 22%, while other key districts such as Jing’an, Minhang, and Pudong New Area also reported increases in sales, the report goes on to add.
Whereas citywide, sales of home appliances and consumer electronics surged by 18.2% compared to the two weekdays prior to the holiday, driven by national trade-in policies, with total sales reaching 780 million Yuan.