For over two decades, Chinese bazaars have been a familiar sight in nearly every Spanish neighbourhood and industrial estate. These stores—often packed with inexpensive household goods, toys, tools, and accessories—quickly replaced traditional “dollar stores” and became a staple of everyday shopping. But today, the tide seems to be turning.
Across the country, more and more of these businesses are either liquidating their stock at rock-bottom prices or closing down entirely. In some cases, owners are even giving away merchandise for free.
The most dramatic recent example occurred at the Balearic Wholesale Bazaar in Palma’s Son Castelló industrial estate. After announcing plans to shut down, the business triggered a frenzy by offering all remaining items for free.
Police had to be called in to manage the crowds. Similar closures have been reported in other parts of Spain, including Málaga, Murcia, and Leganés—suggesting a broader trend.
Social media has been buzzing with theories about why these bazaars are disappearing. One of the more far-fetched speculations involves a supposed mass exodus of the Chinese community from Europe due to geopolitical tensions, rearmament in the EU, or fears of global economic collapse. But according to the Chinese Community such claims are unfounded with closures attributed to more practical and local causes.
Among the key reasons: inflation, increased utility and rental costs, and changing consumer habits. These pressures have hit small businesses hard—regardless of the owners’ backgrounds.
THE ARRIVAL OF TEMU THREATENS THE BAZAARS
Additionally, competition from large multinational retailers and the explosive growth of e-commerce platforms like Shein, Temu, and AliExpress has made it increasingly difficult for small, traditional businesses to stay afloat.
These large Chinese digital platforms are a new type of competition through which Spanish consumers can purchase products at very low prices directly from suppliers. The emergence of the option to use them to purchase products directly from China already had an impact on the sector, but Temu ‘s entry into the market in particular has dealt an even greater blow to these establishments.
The popularity of the new platform, which allows customers to conveniently purchase all kinds of products at a fraction of the price they would pay in a brick-and-mortar store, has narrowed the gap for these Chinese stores in the market.
There have also been changes in Spain’s administrative and tax regulations, which have placed additional burdens on small business owners. Navigating these changes often requires financial investment and legal know-how that not all entrepreneurs possess. As a result, some Chinese business owners have chosen to shut down rather than take on the extra challenges.
Personal factors also play a role. Many shop owners are rethinking their futures, especially after the COVID-19 pandemic, which caused significant disruptions to small businesses. Some are opting for early retirement, others are shifting to different business models, and some are moving on to entirely new ventures.
Despite the closures, the Chinese community remains an integral part of Spain’s commercial landscape. There were about 18,000 Chinese-run bazaars in Spain as of 2023. That number may now exceed 20,000, though exact figures are hard to come by due to a lack of official data.
In short, while Chinese bazaars may be disappearing from some corners of Spain, the reasons are grounded in economic realities—not in conspiracies or mass migration.
The changes reflect broader shifts affecting all small retailers in today’s fast-changing global marketplace.
