"Billionaire Store King" Hangzhou Tower (杭州大厦) Is a Bit Anxious

Financial pressure at the top

Hangzhou Jiebai (杭州解百), the retail group that owns landmark Hangzhou Tower (杭州大厦), reported a sobering 2025 set of results: operating income slipped to RMB 17.00 billion (17亿元), down about 3% year‑on‑year, while net profit attributable to shareholders fell roughly 9.3% to around RMB 2.4–2.5 billion. Over a five‑year window the picture is starker — revenue has declined from RMB 21.29 billion in 2021 to RMB 17.00 billion in 2025 (a 20.1% drop) and cumulative net profit has contracted sharply, underscoring that Hangzhou Tower’s flagship performance is now a decisive variable for the whole group. Can a once‑untouchable "store king" still carry the crown?

Reinvention amid fiercer competition

Hangzhou Tower built its reputation on a heavy concentration of ultra‑luxury names — LV, CHANEL, HERMES, DIOR and an unusual cluster of flagship salons and VIC services that bind high‑net‑worth customers. It has also poured money into a large image‑upgrade program and, reportedly, fought a hard "core brand defence" to secure multi‑year renewals with six anchor luxury houses. At the same time the group has been shifting mix: rental income surged nearly 95% to RMB 170 million in 2025 as dining, entertainment and lifestyle tenants expanded in newly remodeled zones, and new categories such as outdoor, home and premium furnishing began to contribute meaningfully. But it has been reported that Hangzhou Tower has been overtaken in annual sales by Hangzhou MixC (杭州万象城) for two consecutive years, and data from retail trackers show a younger customer gap versus rivals — a vulnerability if the luxury cycle softens.

Outlook — ambitious targets, real risks

Executives are setting ambitious targets: chairman Xu Lei has publicly declared a push for RMB 14.0 billion (140亿元) in annual revenue and 15 million visitors, while doubling down on "hard luxury," light‑outdoor and premium home as new drivers. Yet dependence on international luxury brands exposes the project to global demand cycles and broader geopolitical and trade headwinds that are reshaping cross‑border consumption. Will renewed leases and category diversification be enough to fend off aggressive newcomers — Hang Lung Plaza (杭州恒隆广场), K11, SKP and IFC among them — and re‑energize younger footfall? The answer will determine whether Hangzhou Tower stabilizes its crown or cedes ground in a rapidly remaking Chinese high‑end retail landscape.