One dynamic and central element in China's urban landscape is its retail structure. Yet, little attention has been given to the burgeoning retail sector in the vast literature that relates to China's economic reforms. Using the latest census of commercial activity in Beijing and recent empirical work undertaken in the city, we analyze Beijing's postreform retail structure and economy. Beijing's retail sector has been greatly diversified in both ownership and format. In addition to the emergence of the numerous family-based retailers, private and joint-stock companies now represent a significant part of the retail enterprises—a strong trend towards a market-oriented economy. The presence of many overseas-invested enterprises shows that the Beijing consumer market has been effectively opened to foreign competition and that the Beijing government has a strong desire to continue this trend. The high concentration of retail facilities in Beijing proper is closely related to the urban form. The relative concentration of full-line department stores within the third ring road suggests that new entrants will be better off if they stay away from the inner city and take peripheral locations outside the third, or even the fourth, ring road, in conjunction with development of the newly planned suburban communities.
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