(Yicai Global) July 4 -- The performance of China's retail industry improved in the first half, and businesses became more willing to open physical stores. 

Chinese retail industry sales increased 4.7 percent year-on-year in the second quarter, an increase of 1.2 percentage points quarter-on-quarter, the latest data show.

China's Ministry of Commerce released its China Retail Industry Development Report (2016/2017) yesterday. The report indicates that the labor efficiency of China's retail industry rose last year. Sales at convenience stores, shopping centers and supermarkets grew 7.7 percent, 7.4 percent and 6.7 percent, respectively. Since the second half of last year, large retailers' sales have increased, showing signs of structural development in the industry.

China's retail sales growth accelerated in the first half of 2017, a representative from the Ministry of Commerce's Department of Circulation Industry Development said yesterday. Sales of 2,300 typical retail enterprises went up 4.1 percent year-on-year, an increase of 3.3 percentage points over the same period of last year. Sales in the second quarter rose 4.7 percent, a quarter-on-quarter increase of 1.2 percentage points. Retailers' operating profits rose 7.6 percent, an increase of 7.8 percentage points over the same period last year. Total profits went up 6.6 percent, an increase of 14.3 percentage points over the same period last year.

The development of China's retail industry still faces a series of challenges including those related to uneven commercial network development, structural surplus and flawed facilities, the report said. Increases in the cost of logistics, rent and labor put pressure on retailers. Some retailers have not adopted data-driven management systems, and traditional retail business models have yet to be optimized.