Editor’s note:
Rome wasn’t built in a day. Neither was Shanghai. Once dubbed “the Paris of the East,” the city has evolved into a fusion of multiculturalism. Along the way, Shanghai has accumulated a repository of stories about the people and events that have shaped its history. Five areas of the city occupy pride of place in that journey: People’s Square, Jing’an Temple, Xujiahui, Lujiazui and Xintiandi. This series, a collaboration with Shanghai Local Chronicles Library, visits them all to follow in the footsteps of time.
Shanghai No. 1 Yaohan Mall in the Pudong New Area has stood as a symbol of the city’s modern retail industry since its opening in 1995.
The shopping complex, at the intersection of Pudong Road S. and Zhangyang Road, transformed the city’s commercial landscape and became one of the most popular destinations.
When Pudong development began in 1990, one of the central goals was to attract foreign investment in previously restricted industries such as retail. Pudong became the first to adopt policies that allowed foreign companies to trial ventures in retail and finance.
Amid these developments, the city government envisioned a “new Shanghai commercial city” in the Lujiazui area to enhance shopping infrastructure for the entire city.
In 1991, the Japanese Yaohan International Group, led by its Chairman Kazuo Wada, began exploring opportunities in Shanghai.
Yaohan’s origins were tied to the story of Katsu Wada, Kazuo’s mother and the inspiration behind the popular Japanese TV drama “Oshin” about a poor woman’s rise through hard work and perseverance.
By 1991, Yaohan had grown into a global retail giant with 400 stores and annual sales of more than 500 billion yen (US$3.2 billion).
During his visit to Shanghai, Wada toured the city’s flagship department store, the Shanghai No. 1 Department Store, and was impressed by the proposed Lujiazui site.
In April 1991, talks began between Yaohan and Shanghai representatives. In just two-and-a-half hours, Yaohan and the Chinese team reached a consensus on forming a joint venture.
The venture, Shanghai No. 1 Yaohan Mall, formed a partnership between Shanghai No. 1 Department Store and Japan’s Yaohan Group.
The process of obtaining government approval for the venture was complex at that time. Establishing a foreign-invested retail enterprise required clearance from six central government bodies, including the Ministry of Commerce and the State Council.
The State Council approved the venture in May 1992, making No. 1 Yaohan Mall the first large-scale Sino-foreign joint retail company in China.
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Shanghai No. 1 Yaohan Mall is one of the leading department stores in the city.
The shopping center officially opened its doors to the public on December 29, 1995. An estimated 1 million shoppers flooded into the mall, setting a Guinness World Record for single-day foot traffic at a retail outlet. The sheer volume of visitors even caused temporary malfunctions of the building’s elevators.
The 10-story mall housed 87 escalators, two underground parking levels and advanced control systems for security, lighting, air conditioning and fire safety.
Its façade features 12 arched doorways, representing the 12 Chinese zodiac animals.
The mall quickly became a commercial and cultural hub in Pudong. Its offerings included fresh groceries, dining and services such as banking, photography and beauty salons.
These features, along with Japanese retail management practices, set a new standard for department stores in Shanghai. The inclusion of a fresh food supermarket helped popularize the concept across the city.
Despite its initial success, the shopping center faced difficulties in two years. Its Japanese investor Yaohan declared bankruptcy in 1997 amid the Asian financial crisis.
In response, the Shanghai government stepped in to stabilize the venture. Shanghai No. 1 Department Store acquired Yaohan’s shares to take full control of the retailer.
It marked a turning point in the mall’s history. By 2001, the No. 1 Yaohan Mall had overcome its financial losses and began turning a profit.
By 2005, the mall had firmly established itself as the leading department store in Shanghai in terms of sales. Its adaptability and innovative practices allowed it to thrive in the competitive retail market.
Over time, the store expanded its product offerings and refined its services, becoming once again a prime destination for shoppers in Pudong.
In late 2024, the mall finished its largest refurbishment since its opening. The iconic curved façade, adorned with zodiac reliefs, was repainted, while worn details were restored to their original appearance. The inner courtyard was redesigned with additional greenery, seating and pet-friendly amenities, making the space more welcoming for modern visitors.