The Ministry of Commerce has recently announced its second batch of national pilot cities for retail innovation and upgrading, with Qingdao in Shandong province among the 32 selected cities.

The pilot program aims to accelerate retail transformation through multi-level consumer experiences, improved product and service quality, and the deep integration of brick-and-mortar retail with digital technologies. It also encourages city-specific strategies to revitalize commercial facilities and create new business models.

The initiative seeks to address challenges such as uneven development, insufficient quality supply, and excessive competition, with the goal of building a modern retail system that is well-structured, high-quality, diverse, smart, and orderly.

Under the retail innovation and upgrading plan issued by the Ministry of Commerce and six other ministries in 2024, a new group of pilot cities will be designated annually.

The first batch of 38 cities was approved in June 2025. In July this year, nine ministries jointly issued further guidelines to enhance planning, competition, and policy support for retail development.

Qingdao's selection builds on its previous national pilot achievements — including "new consumer models and scenarios" and "international consumer environment" pilots in 2025, backed by 500 million yuan ($74.14 million) in central subsidies. This year, the city also initiated pilot projects for invoice-based lottery and auto circulation reform.

With strong retail momentum, Qingdao's total retail sales reached 696.07 billion yuan in 2025, ranking second among all cities in northern China.

In the first half of this year, sales hit 337.09 billion yuan, up 2.8 percent — 1.5 percentage points above the national average.

The city has modernized 12 core commercial districts and developed five provincial-level smart business zones. From January to June, over 60 first stores opened in Qingdao, fueling a fast-growing launch economy.

Qingdao ranks among the second batch of 32 national pilot cities for retail innovation and upgrading. [Photo/Guanhai News]