Retail sentiment in China hits 4-month high

What happened China’s retail prosperity index, a key measure of consumer sentiment, edged up to 50.1% in August, a 0.5 percentage point gain from July, according to data from the China General Chamber of Commerce. The latest readings point to a cautious, but notable recovery. The nation’s commodity operations index climbed 1 point to 49.7%, signaling improved offline spending, while China’s leasing operations index held at 52.1%, indicating — sustained expansion. The policy push behind recovery The uptick in consumer sentiment and spending was spurred by a combination of government stimulus efforts including trade-in programs, childcare subsidies, and the rollout of free preschool education as levers for boosting consumer demand. Summer tourism and cultural activities also provided a seasonal boost, keeping leasing demand robust and supporting retail foot traffic in major commercial hubs. The Jing Take China’s August data suggests Beijing’s targeted measures are starting to lift consumer confidence, though the gains remain tentative. With household budgets still under strain from weak property sentiment, job market concerns, and geopolitical headwinds, maintaining growth into Q4 will require sustained policy support and a sharper focus on specific consumer needs. This takes place as big box and discount retailers recalibrate their China strategies. In early August, Swedish furniture group Ikea debuted a digital store on JD.com, aiming to engage new shopper segments by offering more affordable products on an established e-commerce platform. The move reflects a broader push among global brands to experiment with fresh channels and price points in China’s competitive online marketplace. Domestic retreat: When local giants scale back At the same time, Alibaba-owned Hema X (often cited as China’s answer to Costco) is stepping away from the warehouse-style membership model. Its last Hema X Membership store, located in Shanghai’s Senlan Shopping Mall, will close at the end of August, following earlier closures in Beijing, Suzhou, and Nanjing. According to the company, members will still be able to order deliveries and use benefits at nearby Hema Fresh stores. Local and foreign mass consumer brands widening their online reach and domestic chains retreating from unprofitable ventures point to the fragility of China’s retail recovery. While consumer sentiment improving, the market remains highly competitive, rewarding those nimble enough to adapt formats, pricing, and channels to evolving demand. The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media. Read more: Trump’s tariffs take effect in fresh test for global economy World’s rich ignore Mideast strife to bet on Dubai, Abu Dhabi China rolls out childcare subsidy to boost birth rate

Retail sentiment in China hits 4-month high

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Published August 11, 2025

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Retail sentiment in China hits 4-month high