Taiwan’s retail trade is being revived these days; malls and department stores are enjoying a sharp rebound and reporting quick business from their anniversary sales. The arrival of tourists has also majorly contributed to this retail boom. Reportedly, more than 10,000 shoppers were at Taipei's celebrated Xinyi shopping district on the very first day of the annual sale. Most of the promotional items were sold out by noon.

"I buy in bulk now, and use them gradually” one shopper said.

The annual sale is usually held in October every year by department stores. The sale season would begin with Shin Kong Mitsukoshi's branch in western Taipei with others catching up. There has been a noticeable increase in shoppers this year and post the global slowdown of 2008, consumer confidence has now returned.

XinYi Shin Kuan Mitsukoshi Department Store head of sales Chuang Chi Chieh said: "We used to attract consumers with limited items. Now we offer unlimited promotion packages. Consumers can get more discounts and it can help to increase 20 to 30 per cent of revenue"

The department store giant is hoping to earn around US$580 million in revenue this year. For Taiwan’s major retailers, Chinese tourists are now helping to generate significant revenue. In fact, one fifth of the retail sales at the Taipei 101 were chipped in by Chinese tourists.

Industry observers and analysts are of the opinion that Taiwan's retail sector may witness even more lucrative results in 2011. It is then that Chinese free independent travelers (FITs) will be permitted to visit the island. "After FITs are allowed, XinYi district will become Japan's Roppongi and Hong Kong's Harbour City. Chinese tourists can find all brand names in several buildings nearby," Mr Chuang said.