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How China resurges after corona

How China resurges after corona
Shutterstock.com

The worst of the corona pandemic appears to be over in China, and experts expect a full recovery in retail in the second half of the year. What can we learn from this evolution?

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Recovery started

What will our future be after the corona dust has settled? A look at the latest developments in China, where public life is gradually starting up again, gives an idea of ??what we can expect. According to real estate adviser Savills Retail China, a full recovery of the Chinese retail sector is likely in the second half of the year, InsideRetail Asia writes. Consumers are cautiously returning to the shops: shopping centres in Shanghai currently estimate the number of visitors are back at 30?% of the pre-corona level.

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While some restaurants had to close permanently because they were unable to cover labour and rental costs during the lockdown, the restaurants that survived have been allowed to re-open following an application process. Well-known restaurants are popular again after the outbreak of the corona virus.

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Precautionary measures

Most fitness centres in China have also reopened, with the exception of those in Beijing. There are strict hygiene measures in place to prevent the epidemic from flaring up again: the number of visitors who are allowed to exercise simultaneously is limited. The night clubs and amusement parks in most cities have also reopened since a few days. However, Chinese consumers seem to want to avoid these places for the time being.

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A cautious resurgence is also the hope in other countries that are gradually easing their measures, such as Austria and Poland and even Spain and Italy (minus Lombardy). Less positive news comes from Japan, where a second wave of infections has been detected in some provinces and the lockdown has therefore been reintroduced.

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Moreover, the IMF released a report today, which predicted that in many countries the economy will shrink by about 7?% in 2020 (slightly less in Belgium, slightly more in the Netherlands). For the United Kingdom, a report even speaks of a contraction of 14?% for the full year (and -?35?% for the current quarter). If the economy were to shrink tat much, it would also do little good for the sellers of non-essential products and services...

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