LONDON — SKP, one of the most profitable luxury retailers globally, logged a group-wide 15 percent increase in turnover in the year ending Dec. 31, 2025, according to sources familiar with the matter, who requested anonymity.
Annual turnover of its flagship project SKP Beijing recorded a 6.8 percent gain to 23.5 billion renminbi, or $3.4 billion, in the period, sources added.
Faced with industrywide headwinds, SKP Beijing’s annual turnover dropped about 17 percent in 2024 to 22 billion renminbi, down from a record 26.5 billion renminbi in 2023. In 2020, SKP Beijing became the world’s most profitable mall after beating Harrods with annual sales of 17.7 billion renminbi, according to reports at the time.
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Apart from its Beijing flagship, the group operates three other branches, including Xi’an SKP, Chengdu SKP and Wuhan SKP. Future projects in Guangzhou and Hangzhou are in the works.
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The 2025 figures demonstrated SKP’s resilience amid continuous tough trading conditions in China due to myriad economic challenges.
According to a recent Bain report, mainland China’s personal luxury goods market contracted by 3 to 5 percent in 2025. Premium beauty rebounded by 4 to 7 percent, while the fashion category declined 5 to 8 percent, outperforming leather goods, which fell 8 to 11 percent during the same period.
However, during the latest reporting period, luxury behemoths have begun to see clearer signs of recovery in the Chinese market.
A new Bernstein report noted that discretionary consumer demand in China had already improved in the second half of 2025, which aligns with the bank’s base-case scenario of a U-shaped recovery in 2026.
“Landlords told us that fourth quarter 2025 has been the best quarter in traffic and revenues in a long time — more so in the mass market and premium space, and less so in the high end, even though both have seen incremental improvements,” the bank added in the report.
Looking at 2026, October will mark the official grand opening of SKP Wuhan, as the majority of the 44 properties that have been repurposed for brand takeovers on its K Avenue will be unveiled.
Brands in China have been shuttering underperforming stores and betting on trusted developer-managed locations with mega flagships, and SKP plays a key role in that development.
Louis Vuitton last December opened a three-story store spanning 9,500 square feet at SKP Wuhan. It is one of the first Vuitton locations in China with dedicated fragrance and makeup sections. In April 2025, Miu Miu also unveiled its first flagship in central China, which spans around 5,200 square feet and three stories.
This year will also be the first full trading year under SKP’s new ownership structure led by Boyu Capital.
Last May, SKP sold around 42 to 45 percent of the company to Boyu Capital’s fifth and largest U.S. dollar-denominated fund.
Boyu Capital is a Chinese private equity firm founded in 2011 by Louis Cheung, former chief financial officer of Ping An Insurance; Alvin Jiang, the grandson of China‘s former president Jiang Zemin; Mary Ma, a former partner at TPG Capital, and Sean Tong, formerly of General Atlantic. The firm quickly gained prominence through a series of high-profile investments, including from Alibaba, Xiaomi, JD.com and TikTok‘s parent company ByteDance.
It’s understood that the SKP acquisition is part of Boyu’s broader strategy to build a premium consumption ecosystem in China, which also included a major investment in Starbucks China at the end of 2025.