Why are stores closing in droves in China's tier-1 cities?

This note is not a reflection of doom and gloom for China, nor is it representative of the entire country. Instead, it marks the beginning of a paradigm shift in China’s retail landscape.

If you've visited Shanghai in recent years, you may have witnessed the peak of the city’s hipster central Anfu Road. Fashionistas, influencers, and tourists flocked to the area, filling boutique lifestyle stores, coffee shops, and domestic youth-centric brands. Local residents jokingly called it the "center of the universe" and often sneered at the heav…