New-look Nanjing Road arising.

The first floor of Meilongzhen Isetan Department Store is closed for renovation, but should re-open to the delight of shoppers shortly. Store managers expect spending to be sparked by better presentations - and other stores are following the move to brighten their outlets.

According to the re-development department of Meilongzhen Isetan, 12 years of operation has taken its toll and consumers have grown tired of the store's sales model. This, coupled with the blow dealt by the financial crisis, has caused year-on-year business growth at the formerly wildly popular store to drop.

Upon renovation, Meilongzhen Isetan is to reposition itself as the first "lifestyle" department store in Shanghai.

Scheduled for re-launch before the Spring Festival next year, the revamped Meilongzhen will have a layout under three different lifestyle themes, namely: working women, days of leisure and shopping with children. The area dedicated to cosmetics counters is to be expanded from half a floor to a whole floor - or even more.

In addition to introducing certain brands which have not yet entered the Mainland market, the store plans to offer cosmetics for children and pets, an entirely different approach to marketing.

Dedicated promoters will also be employed to provide services such as product demonstrations and make-up consultation.

Golden Eagle Department Store, which has been closed for revamp for about a year, announced its re-opening late last month, with the presence of Gucci's China flagship store as its brightest spot.

According to a source from Golden Eagle, the brands on offer after the re-launch will be more diverse and international.

Just a street away from Golden Eagle, long-established luxury goods department stores Plaza 66 and CITIC are also devoting efforts to upgrade the brands they offer. Over 10 luxury brands including Versace, Kenzo and MaxMara are moving in, one after another.

While the cluster formed by Meilongzhen, Plaza 66 and CITIC is undergoing a facelift, two new commercial circles on each side of this large triangle are emerging.

In the Jinan Temple commercial circle on the western section of Nanjing Road West, new projects include Shanghai Kerry Centre Phase II, Park Place and Wheelock Square. A new cluster comprising Hisamitsu Department Store, Park Place and Kerry Centre is soon to emerge.

Over on the eastern section of Nanjing Road West, 818 Plaza, the Dazhongli Project and Marks & Spencer are to form another cluster.

These two commercial circles will target the medium range retail market and will be competing with the Meilongzhen, Plaza 66 and CITIC cluster on a differentiated basis under the banner of a young image.

When the dust settles on all the renovation and construction work, Nanjing Road West will be transformed for even more sales.

from Kelly Dai, Shanghai Office