The world’s largest duty-free store is having its final touches added as the vast Haitang Bay International Shopping Mall – in which the 45,000sq m store is located – is readied for a trial opening on 1 September.

 

The 70,000sq m shopping mall in Sanya city in South China’s Hainan province is operated by China Duty Free Group and is the first of a three-phase development which is costing CDFG’s parent, China International Travel Service, CNY 5bn ($814m).

 

Zhao Feng (below), Deputy General Manager of CDFG says the shopping centre is the world’s largest downtown duty free commercial complex. It is divided into five areas, each inspired by the ocean, crab-apple, flowers, fruit and nature.

 

Feng expects to see significantly increased revenue as a result of the opening, not least because many of the world’s biggest luxury brands such as Bulgari, Burberry, Chanel, Dior, Hermès, Tod’s and Zegna will have their own large boutiques at the multi-level complex.

 

A MILLION DOLLARS DAILY

CDFG already has strong grounds for optimism. On average, 10,000 shoppers daily cram into its existing Sanya downtown duty free store (right) where sales last year exceeded CNY 2,800 ($456m).

 

Revenue at the store has been roughly doubling every year since it opened on 20 April 2011 (see table below), and, until the end of 2013, the store had racked up total sales of CNY 5.85bn ($953m).

 

Average daily sales stand at just under a million dollars.

 

 

FUTURE DEVELOPMENT

Phase 2 of the project will focus on a lake islet with the construction of large F&B, cultural and entertainment facilities, while Phase 3 will include customised luxury product centres and museums.

 

In the near future, approximately 30 hotels will be built in the coastal area of Haitang Bay with the shopping centre as its centre.

 

Haitang Bay in Sanya is a key development area on Hainan Island, which is China’s first international tax free tourism destination.