The southern city of Guangzhou is handing out four million U.S. dollars' worth of shopping vouchers to boost consumption. The stimulus came a day after China announced more relaxations to its COVID rules. Negative PCR test results and health status apps are no longer required by the government for most public venues. Huang Fei has been finding out what this means for retailers.
As Guangzhou emerges from COVID-19 closures, department stores are hoping for a holiday season rebound.
Goodbye to health status app check-ins; hello to big discounts and free parking.
On top of the store's own sales campaigns, customers can get further price deductions using government vouchers.
XIAN QIUXIAN Department Store Manager "The relaxations have also coincided with a weather change. Sales of winter products like sweaters, coats and blankets are up. Sales of wool sweaters have gone up by 50 percent. We expect to see more customers in the lead up to New Years Day and the Spring Festival."
To increase the appeal of in-store purchase, traditional malls are turning to digital technology, such as this AI "makeup cam."
HUANG FEI Guangzhou "You can try on makeup without actually putting makeup on your face. That's pretty cool."
To lift brick-and-mortar shops out of a slump, Guangzhou has been handing out consumption vouchers since May.
Officials say they have directly contributed to 500 million dollars of spending.
HUANG FEI Guangzhou "This is one of the oldest shopping areas in Guangzhou. Before the pandemic, more than a million visitors roamed these streets on a busy day. And as you can see, the crowds are slowly coming back, and shops are eager to tap the potential of retail therapy after a long hiatus."
MS. DENG Street Vendor "At the height of the outbreak, this place was empty. The good news is people are coming out again. But I think a lot of them are a bit worried, they are not as active as before. Our sales have improved, but not by a lot."
PCR testing is no longer mandated among the general public, but people are exercising caution. Even in an outdoor space like this, it's hard to spot anyone without a mask on.
MR. XU Guangzhou Resident "Since the rules are relaxed, we are more likely to get infected. But the economy will be better. Life still feels better than before. We just need to be careful."
As the city learns to live with COVID, retailers are not rolling back on their hygiene routine. Disinfection is still firmly on the agenda. Huang Fei, CGTN, Guangzhou.