Retail sales in Qingdao's Shinan district outpaced every other district in the first half of 2025, propelled by simultaneous upgrades at opposite ends of the market.

Large malls once focused on pure shopping have recast themselves as cultural and entertainment destinations, adding art installations, live events and themed dining to encourage longer visits.

At the same time, a fast-growing network of small franchised convenience stores has filled gaps in side streets, creating a 15-minute living circle that meets the daily needs of residents. The stores deal with slim margins through the use of private-label snacks and beverages and can reorder stock overnight.

Large malls create new social hubs through a variety of activities. [Photo/WeChat account: qdweishinan]

A branch of the chain convenience store Lawson in Yinyu Lane. [Photo/WeChat account: qdweishinan]

Policy gave both sectors a lift. The district commerce bureau issued 10 million yuan ($1.4 million) in vehicle vouchers through its "good products gather" campaign, generating 400 million yuan in related purchases. The local bureau also co-created special events like the Southeast Asian Food Festival and the Coffee and Bread Festival with shopping malls, improving the consumer experience.