"Anxiety is spreading in the merchandise business in Shanghai, which leads to the 'discount war' among department stores," said Wang Liuhe, secretary general of Shanghai Merchandise Commercial Profession Trade Association.
The negative impact of economic downturn began to take its toll in the merchandise business last year. High and middle class department stores in Shanghai for the first time witnessed a reverse in performance, though sales during the Golden Week of the National Day Holiday rose to a peak. According to the media report, the decline in sales of department stores is around 10%-30%. Among the "five golden flowers" in Shanghai high-end merchandise business, sales in Hongqiao Friendship Shopping Centre, Huating Store Isetan in Meilong Zhen Plaza and Oriental Department Store have dropped by 15%. At present, it seems that such situation does not appear alone in Shanghai.
In 2009, China's merchandise industry may have its first zero growth since the 1990s.
