Dalian Wanda shutters stores

China’s Superstar days are over.

Hong Kong listed retail group Dalian Wanda is to close down China’s largest karaoke chain Superstar, a victim of the mainland government’s mission to discourage excessive spending on entertainment and gifts.

The company has also flagged the closure of an unspecified number of its department stores due to tough competition from online retailers, eating into store sales volumes.

Some Chinese news media are reporting as many as half of the company’s 90 department stores could be shuttered, but the company remains vague.

“China’s consumer behaviour is undergoing significant changes, inevitably hurting some large-scale retailers,” said Qu Dejun, president of Dalian Wanda subsidiary Dalian Wanda Commercial Properties.

Before the Chinese government’s clampdown on entertainment expenses, karaoke parlours were popular destinations for government officials and businessmen entertaining clients and contacts.

Qu said Superstar would close because the chain’s profits were now very thin due to “national policy”.

Taiwan karaoke chain Cashbox Partyworld has already trimmed back its mainland karaoke network.