Large-format flagships redefine retail in China

Shanghai’s prime retail market continued to experience the “large-format flagship wave” in 2026. Notable openings included Dolby’s first flagship experience centre, around 1,200 sqm, at Zhangyuan and Hyundai Motor’s UX Studio, around 2,800 sqm, in the Jing’an Temple area.

This trend is not confined to Shanghai but extends across Tier 1 and key Tier 2 cities. According to JLL Research, nearly 90 large-format flagship stores opened in these markets between the second half of 2024 and the first half of 2026, averaging over 1,200 sqm in store size.

Figure 1: New large-format flagships opened by leading brands (2024H2-2026H1)

Source: JLL Research

These expansive spaces, evolved beyond traditional points of sale into immersive destinations, are intended to help brands express their identity and foster community. Retailers increasingly prioritise these benchmark-setting environments to embody new lifestyles. This signals a strategic shift towards creating meaningful consumer experiences rather than simply expanding physical footprint.

Five sectors, including sportswear, collectible toys, luxury, consumer electronics and fast fashion, are driving the large-format flagship wave, each pursuing distinct expansion strategies.

Figure 2: Store size comparison: new large-format flagships and standard stores by sector

Source: JLL Research, based on nearly 90 newly opened large-format flagships in Tier-1
and key Tier-2 cities from 2024H2 to 2026H1

• Sportswear: Transitioning to large-format community hubs that prioritise immersive, localised experiences over inventory to foster emotional loyalty. For instance, Anta’s 1,600 sqm “City of the Future” flagship in Beijing integrates interactive sports zones and digital storytelling. This dynamic hub allows consumers to test products in realistic scenarios, strengthening brand connection through shared athletic culture.
• Collectible toys: Shifting to expansive, IP-driven flagships that transform transactions into cultural experiences. For instance, POP MART’s 800 sqm Shanghai flagship at Shimao Festival City features four themed exhibition zones and a dedicated DIY area. This immersive environment elevates blind-box consumption beyond retail, fostering emotional resonance through interactive cultural engagement. 
• Luxury: Prioritising exclusivity through iconic, standalone landmark stores. For instance, Rolex’s 650 sqm flagship at HKRI Taikoo Hui features multiple curated zones and exclusive VIP lounges. Its distinctive architecture and curated heritage displays reinforce brand premium, shifting the focus from transactional retail to brand storytelling.
• Consumer electronics: Expanding into immersive lifestyle hubs to show full-scenario ecosystems and strengthen user engagement. For instance, Dolby’s 1,200 sqm global experience centre at Zhangyuan integrates 11 audio listening spaces and entertainment promenades, allowing users to experience interconnected smart living firsthand.
• Fast fashion: Evolving from single-product retail to holistic lifestyle spaces in prime locations to redefine offline value. For instance, ZARA’s 2,000 sqm new concept flagship on Mid Huaihai Road spans five floors with comprehensive merchandise. This creates a cohesive destination that elevates engagement through integrated fashion and technology.

The large-format flagship trend will continue, requiring deeper brand-landlord collaboration to co-create value through aligned objectives. Brands should anchor expansion in financial viability and operational readiness to avoid overexpansion. Large-format stores serve as strategic vehicles to convey brand philosophy and enhance brand image. Meanwhile, landlords must actively accommodate brands’ evolving needs by offering flexibility in facade renovation and spatial design, to enable diverse and immersive tenant experiences.