The first batch of urban renewal unit plans for 2026 in Shenzhen's Futian District has been officially announced, with the Xiangmihu Street Wal-Mart area renewal unit being the sole project listed. This signals the impending redevelopment of the nearly two-decade-old Xiangmihu Wal-Mart store, a landmark for Shenzhen shoppers.
The store is located at the intersection of Qiaoxiang Road and Xiangmei Road in Futian District, adjacent to Xiangmei North Station on Metro Line 2. As one of Shenzhen's largest two-level Wal-Mart stores, it occupies approximately 30,000 square meters. According to the public notice, the project involves the demolition of 34,700 square meters of land, with the renewal direction focused on commercial functions. It is required to allocate no less than 15% of the land for public welfare facilities, and all newly constructed commercial, office, and hotel buildings will be self-operated by Wal-Mart.
Unlike typical urban renewal projects, this initiative was self-applied for redevelopment by Wal-Mart, with no involvement from external real estate developers. However, despite being included in the Futian urban renewal plan, no signs of demolition were observed on-site. As of the afternoon of June 4th, the store was operating normally, and multiple staff members indicated that demolition was not expected in the short term.
The Xiangmihu Wal-Mart holds a significant place in the early exploration of Shenzhen's retail industry. In 1996, Wal-Mart formally entered the Chinese market, establishing its national headquarters in Shenzhen, a landmark event for foreign retail entry. At that time, Wal-Mart simultaneously opened two stores in Shenzhen, with the one on Xiangmei North Road being the first Sam's Club in China, pioneering the paid membership consumption model. In an era when the average monthly salary was only a few hundred yuan, the annual membership fee of 150 yuan for a primary card and 50 yuan for a secondary card made this store a high-end consumption landmark in Shenzhen.
A long-time resident of the Jingtian area in Futian noted that large-scale commercial facilities in the area are limited, and the Xiangmihu Wal-Mart serves as a key community-oriented commercial hub. The predecessor of this store was the first Sam's Club in the country.
This pioneering Sam's Club once set the global single-day sales record for Sam's Club stores, witnessing the vigorous start of Shenzhen's commercial economy. Despite its impressive beginning, shortcomings in adapting to the times eventually led to the project's first business transformation. By the end of 2005, after nine years of operation, this first Sam's Club in China officially relocated to the current Futian YINLI Center. The original site underwent comprehensive renovation and was transformed into a Wal-Mart shopping plaza in 2006, shifting from a high-end membership store to a community commercial facility serving nearby residents, completing its first transformation aligned with urban community needs.
Its inclusion in the district-level urban renewal plan marks the upcoming third business upgrade for this site. The project, self-applied by Wal-Mart, involves demolishing 34,700 square meters of land and is planned for comprehensive commercial development. The vision is to build a fully self-held complex project encompassing high-end commercial spaces, offices, and boutique hotels, marking the end of the nearly twenty-year operation of the two-level hypermarket format on the site.
According to official regulations, the project must allocate no less than 15% of the demolition area, with a minimum of 3,000 square meters, for municipal and public welfare facilities to address the public infrastructure gap in the Jingtian area. No external real estate developers are involved in the land acquisition and development process; all newly planned commercial, office, and hotel properties will be self-operated by Wal-Mart. From hosting the first Sam's Club in China in 1996, transforming into a community Wal-Mart hypermarket in 2006, to the current complex redevelopment, the site has undergone three rounds of business iteration, aligning with the urban development and upgrade direction of the Xiangmihu area.
What prompted the decision to initiate redevelopment? This transformation is not an isolated case but reflects a global trend in retail development. Companies like Wal-Mart, Carrefour, and IKEA are increasingly leveraging their own property operations or asset restructuring to establish a dual-drive model of 'real estate operation + core retail business,' aiming to overcome the growth bottlenecks of traditional hypermarkets.
Beyond industry trends, the appreciation of land value is likely a key factor giving the project confidence to proceed. The site is located in the core area of Xiangmihu, representing a prime, irreplaceable plot adjacent to a metro station. Covering 30,000 square meters, it is a rare large-scale commercial land parcel in Futian's core area. Currently, however, the project consists of only a two-level, low-rise commercial building.
The area surrounding Xiangmihu Wal-Mart has a high concentration of residential communities, adjacent to mature neighborhoods such as Tefa Community, Jialong Xingyuan, Xiangming Yuan, and Oriental Rose Garden. The average selling prices for secondary market homes in these areas generally range from 86,000 to 99,000 yuan per square meter.
According to data, Tefa Community's average secondary market price is 99,000 yuan per square meter; Oriental Rose Garden's is 95,100 yuan per square meter; and Jialong Xingyuan's is 86,900 yuan per square meter.
An industry expert pointed out that Wal-Mart's unique advantage lies in leveraging the existing store's customer base and precise understanding of local consumption patterns, with the project currently maintaining normal operations. The potential shortcomings include a lack of experience in commercial real estate development and operation, possibly leading to the introduction of partners later. Furthermore, if all properties are self-held, it would require substantial capital and could face certain macroeconomic funding and market risks.
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