LAVAZZA Opens First Guangzhou Store at Gaode Plaza

As Guangzhou’s retail scene heats up, international brands are making their move. With consumer spending up 16.4% year-on-year through August, foreign retailers are seizing the moment—especially in prime districts like Tianhe and Zhujiang New Town. One of the latest arrivals? A globally recognised Italian coffee brand.

LAVAZZA, the iconic Italian coffee company, has opened its first Guangzhou store at Gaode Plaza, joining other new entrants in the third quarter of 2011. This move comes as the city’s high-end retail leasing market shows strong momentum, with prime locations seeing rising rents and increasing demand for premium brands.

Third-Quarter Retail Surge in Guangzhou

According to Jones Lang LaSalle , Guangzhou’s total retail sales hit 326.293 billion yuan from January to August, marking a 16.4% year-on-year increase. This double-digit growth has fueled a vibrant commercial property market, particularly in Q3, when multiple foreign retailers debuted in the city.

The report highlights a wave of new international brands entering Guangzhou, spanning fashion, beauty, and food. Notable openings include Swiss watchmaker Tissot at MixC Mall, French media brand Fashion TV, US fashion label DKNY at Tianhe City, and US yogurt chain Yoghurt Barn at Grandview Mall. Among the new food and beverage concepts, Italian luxury coffee brand LAVAZZA has made its mark with a flagship store at Gaode Plaza, while Vietnamese restaurant An Nan opened at Flower City Plaza Phase II.

Retail Leasing Market Heats Up

The Tianhe business district has been especially active, with existing malls refining their tenant mix to attract more foreign retailers. For example, MixC Mall leased 160 square metres to Tissot, 300 square metres to Mango, and 75 square metres to Fashion TV. Meanwhile, premium skincare brand Origins launched its first Guangzhou store at Grandview Mall.

This influx of international tenants has had a direct impact on commercial rental rates. Average net rents for high-quality retail space in Guangzhou rose to 750 yuan per square metre per month in Q3, a 2.7% month-on-month increase. Although no major commercial property investments were recorded in the quarter, capital values still climbed by 3.4%, driven by steady rental growth and expectations of asset appreciation.

New Supply and Future Outlook

Looking ahead, Jones Lang LaSalle expects Guangzhou’s total high-quality retail stock to grow by approximately 20% from late Q3 to year-end. Around 70% of this new supply will concentrate in the Tianhe CBD and Zhujiang New Town areas. Key upcoming projects such as Flower City Plaza Phase I, Sun City Shopping Centre, and West District Mall are already showing strong pre-leasing activity, which may help stabilise vacancy rates.

Despite global economic uncertainties, the overall trend points to continued moderate rent increases in Guangzhou’s prime retail areas through the end of 2011. However, a slowdown in rent growth is anticipated for 2012 due to lingering macroeconomic concerns.

Frequently Asked Questions

Where is LAVAZZA’s first Guangzhou store located?

LAVAZZA’s debut Guangzhou store is situated at Gaode Plaza, a prominent commercial development in the city. This location is part of the booming Tianhe and Zhujiang New Town area, which has seen significant activity from international retailers in Q3 2011.

What other international brands entered Guangzhou in Q3 2011?

In addition to LAVAZZA, Q3 2011 saw the arrival of Swiss watch brand Tissot at MixC Mall, French media brand Fashion TV, US fashion retailer DKNY at Tianhe City, US yogurt chain Yoghurt Barn at Grandview Mall, and Vietnamese restaurant An Nan at Flower City Plaza Phase II. These openings reflect strong demand for international retail concepts in Guangzhou.

How much did retail rents rise in Guangzhou during Q3 2011?

The average net rent for high-quality retail space in Guangzhou reached 750 yuan per square metre per month in Q3 2011, reflecting a 2.7% increase from the previous month. Capital values also grew by 3.4% during the quarter due to steady rental income and asset appreciation expectations.

What is driving the increase in international retail in Guangzhou?

Guangzhou’s retail sales grew 16.4% year-on-year through August 2011, creating strong demand for international brands. This economic momentum, combined with the city’s expanding middle class and appetite for premium products, has attracted retailers like LAVAZZA, Tissot, and DKNY to open their first stores in the city.

What new retail developments are expected by the end of 2011?

By the end of 2011, Guangzhou’s high-quality retail stock is expected to increase by around 20%. Most of the new supply will be concentrated in Tianhe CBD and Zhujiang New Town, with major projects including Flower City Plaza Phase I, Sun City Shopping Centre, and West District Mall. These developments are already seeing strong pre-leasing interest.

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