Shanghai Daily news

Shanghai's retail sales during the Spring Festival were the highest in eight years as heavy pre-holiday snow kept many would-be travelers in the city and willing to spend despite soaring prices.

About 360 large- and medium-sized retailers turned over a combined 4.2 billion yuan (US$584.18 million) during the weeklong holiday from February 6, up 20.5 percent from a year earlier, the Shanghai Economic Commission said in a statement yesterday.

"Spending was boosted as many residents canceled travel and migrant workers chose to stay in Shanghai due to heavy snow," Chen Yuxian, an official with the commission, said in the statement.

Meanwhile, China's retail sales surged 16 percent during the Spring Festival. Nationwide, consumers spent 255 billion yuan, up from 219.8 billion yuan in the same period last year, the Ministry of Commerce reported on its Website.

City retail sales maintained double-digit growth throughout the holiday, which peaked on New Year's Eve, with turnover of 845 million yuan.

Sales at department stores and shopping centers were boosted as consumers rushed for holiday discounts of up to 80 percent and marketing promotions, such as lucky draws.

The city's major shopping centers took in a total of 1.05 billion yuan, a 24.1-percent increase from a year earlier. Speciality stores pulled in 753 million yuan, an increase of 38.6 percent.

Turnover at supermarkets and convenience stores rose 14.9 percent to 2.27 billion yuan, while spending at restaurants climbed 16.7 percent to 96.9 million yuan.

Local residents spent more money on clothing, food, home appliances and jewelry, offsetting weaker demand for clocks, glasses, medicine and books, the top economic watchdog said.

Some analysts said the rapid expansion in city retail sales was partly because of soaring consumer prices after stock gains and rising wages last year.

Shanghai's gross domestic product rose 13.3 percent to hit a record high of 1.2 trillion yuan in 2007, the 16th straight year of double-digit growth.

Retail sales lifted by 14.5 percent to 384.7 billion yuan, the fastest pace since 1998.

The municipal government is cautious about galloping economic development and its inflationary impact.

Shanghai's consumer price index jumped 3.2 percent in 2007, compared with the 1.2-percent rate of 2006. It was higher than the figure of 2.4 percent in Beijing but lower than the national average, which settled at 4.8 percent.