The end of 2016 brought sweeping closures to brick-and-mortar retailers throughout the capital.
Shoemaker Red Dragon announced plans to close its retail outlet at Jiaodaokou, Dongcheng District – formerly its busiest store.
The manager surnamed Guan told Beijing Youth Daily reporters that the company has failed to push its new seasonal offerings for years, and that the store had been in decline since 2011.
The 30-square-meter store cost 260,000 yuan per year to rent, meaning the store required 5,000 yuan of sales each day to cover the cost of rent. Guan said the daily average sales in 2016 ranged from 600 yuan to 1,000 yuan.
At its peak, Red Dragon operated more than 100 stores in Beijing. It closed six locations last summer.
Larger chain stores have done little better.
Walmart closed 269 stores around the world in 2016. Eleven of the stores were in China. Vanguard, Carrefour and other big supermarkets also closed some of their stores.
Big department stores including Wanda, Parkson and New World, as well as clothing stores such as Belle, Daphne, LV and Burberry also closed hundreds of locations in China.
Zhao Hongshan, a specialist at the Beijing Institute of Fashion Technology, said the recession and ongoing e-commerce boom are the main reason physical stores close.