The long-delayed flagship arrives amid the city's biggest retail property boom yet. Now comes the real test: can it turn opening-week crowds into lasting traffic?
Joy City Shenzhen in Bao'an. Photo by Wang Yuhan
by WANG Yuhan
Joy City, the signature retail brand of GrandJoy Holdings, has finally landed in Shenzhen—15 years after planning began. With a total investment of 20 billion yuan (US$2.75 billion) and a floor area of 730,000 square meters, the massive mixed-use complex officially opened in July, completing the group's presence across China's four tier-one cities: Beijing, Shanghai, Guangzhou, and now Shenzhen.
But Shenzhen is no easy battleground. Known for its dense mix of local and international malls, the southern tech hub poses a challenge for the northern-style Joy City, which now must prove it can turn footfall into long-term consumer loyalty.
Joy City's Shenzhen debut stems from a protracted urban renewal project in Bao'an District dating back to 2010. That year, GrandJoy Holdings signed a framework agreement with the local government to redevelop a sprawling, outdated industrial zone that housed 3,500 merchants and nearly 10,000 workers.
It took seven years just to resolve complex ownership issues and clear the site. Construction finally broke ground in 2017 but faced further delays due to planning revisions, pushing the grand opening to July 2025.
Originally envisioned as a shopping center serving primarily the Bao'an District, the project underwent multiple redesigns to stay relevant in Shenzhen's fast-evolving retail landscape. In 2019, GrandJoy repositioned it as a city-scale flagship designed to serve a broader swath of Shenzhen. Alongside the shift in ambition, the mall's architecture also evolved—from a traditional enclosed layout to an open format combining mall space, street-level retail, and rooftop venues, designed to suit the subtropical climate and social preferences of younger consumers.
The strategy appears to be paying off, at least initially. According to GrandJoy, nearly 100 brands posted national sales highs on opening day, and almost 50 set records within Shenzhen. The mall reported total sales of nearly 20 million yuan (excluding Apple and automotive brands) on July 12.
A week later, Jiemian News found the crowds still surging. "We were full and had to stop taking waitlist numbers by 5:30 p.m.," said one restaurant employee, attributing the rush to launch promotions. Another customer from Futian said she came specifically to visit Shenzhen's first Joy City and its lineup of debut stores.
Joy City's arrival coincides with an unprecedented wave of new retail space in Shenzhen. According to CBRE, 349,000 square meters of new retail properties came online in the first half of 2025—mostly in Q2—and another 600,000 square meters are expected in the second half.
Bao'an District, home to the new Joy City, is the city's most saturated retail zone, with more than 40 malls totaling over 3.1 million square meters. Within a five-kilometer radius of Joy City, at least 10 other major malls are already operating, including Zhongzhou πMall, Haiya Mega Mall, and Wanda Plaza.
More are on the way. Bao'an will soon welcome projects like Huide MixC and Qianhai Huafa Ice & Snow World, adding to the competitive pressure.
Shenzhen's commercial environment is notably diverse. "Compared to Beijing, Shanghai and Guangzhou, Shenzhen is marked by its newness—of city, of population, and of industry," said Allen Xiao, head of consulting at CBRE China, in an interview with Jiemian News. That means strong purchasing power at both the luxury and mass-market ends, and a consumer base that is young, open-minded, and shaped by tech and creative industries.
Existing players range from China Resources' MixC and MixC World malls, to local brands like Excellence and Horoy, which combine neighborhood services with retail. Meanwhile, Hong Kong developer New World targets youth through its art-meets-commerce K11 ECOAST.
For Joy City, local adaptation will be crucial. Xiao argued that instead of framing the retail market as a battle between northern and southern styles, developers must focus on how to build destination appeal and cultural resonance for target demographics. That means offering flexible product mixes, investing in emotional connection, and balancing practical and experiential value.
As GrandJoy Holdings contends with broader real estate headwinds, its Shenzhen launch carries weight beyond branding.
The company, the real estate arm of state-owned COFCO Group, saw revenue fall 2.7% year-on-year to 35.79 billion yuan in 2024, while gross profit dropped 20% to 7.79 billion yuan. Net losses widened to 2.98 billion yuan, bringing total losses over the past three years to more than 7 billion yuan.
The slump came largely from its property development arm, with full-year contract sales falling 20% to 36.9 billion yuan and cash flow from operations down nearly 38% year-on-year.
In contrast, the commercial property segment held steady. Investment property revenue was 5.24 billion yuan in 2024, with a gross margin of nearly 60%. The group's shopping centers recorded 40.1 billion yuan in total sales and 366 million customer visits, up 16% and 22% respectively.
GrandJoy opened three new malls last year, all with occupancy rates above 98%. As of end-2024, it operated 36 shopping centers and held another 8 in development.
To counterbalance its struggling development business, the group has been advancing a dual strategy of asset-light expansion and financial innovation. Its Chengdu Joy City was spun into a REIT in 2024—the first consumption-themed REIT in southwestern China—helping unlock capital from existing assets.
Market analysts at CRIC believe the company can further ease liquidity pressure by scaling up REIT offerings, outsourcing operations, and packaging assets for fund-backed growth.
Still, the Shenzhen mall—built and held as a heavy-asset anchor—will serve as the ultimate test of GrandJoy's long-term relevance and return potential.
