SHANGHAI, June 25 Reuters Retailers in China face a daunting nearterm future after a disappointing midyear online shopping festival that has also clouded the recovery prospects of the world39;s secondlargest economy.

Ecommerce sales decline for the first time during the socalled 618 festival that ended last week, reports said, reflecting the pressures building up on retailers who are already locked in a gruelling price war.

The festival, named after the June 18 founding date of ecommerce provider JD.com but embraced by all platforms, is China39;s secondbiggest annual sales event after 39;Singles Day39; in November and is seen as a key indicator of household consumption.

The two events once showcased the rampant rise of Chinese consumerism, providing a reliable bump in sales for platforms and brands alike. The last time Alibaba reported Singles Day revenue, in 2021, sales hit 84.54 billion over the event39;s duration.

This year, 618 has instead proven just how hard it is to get consumers spending at all.

Chinese spend has been basically focused on sales opportunities and coupons. If they39;re not spending during this 618 sale, when on earth are they going to consume? said Alicia GarciaHerrero, Asia Pacific chief economist at Natixis.

To be fair to the event, discounts have become available yearround since the pandemic, with retailers competitively offering them to woo belttightening consumers, thereby helping stunt sales growth during big shopping festivals.

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