In a somewhat similar move, the usually markdown-averse Shanghai Bailian Group dusted off its clearance signs, selling apparel and footwear at discounts of up to 30 percent.

The retail conglomerate saw its gross profit decline by 1.96 percent, according to the 2011 annual report of its A-share listed company Shanghai Friendship Group Inc Co.

Cash flow generated from its operating activities, a combination of rents and revenue deduction, slid 31.4 percent year-on-year, indicating a drastic drop in sales and perhaps customer flow.

Amid the difficulties, introducing world-renowned brands such as Boss, Cartier and Longchamp has "played a critical role in the readjustment of the company's strategic layout", the report said, adding it will stick to its path of attracting top-notch brands.

Chen Tao, a partner at consulting firm Roland Berger Strategy Consultants in Beijing, said boutiques and shopping centers are more vulnerable to Internet sales if the inventories they have in stock are standardized products that are easy to get.

"If you look at the online apparel landscape, it's interesting to note that people start by selling shirts and sportswear, both of which are standardized clothes, and from there they proliferate to other categories," Chen said.

Likewise, digital products and home appliances are the categories of goods that are least immune to pressure from Internet sales.

Apart from their inventory, stores should learn to identify their target customers and readjust their strategies accordingly.

Chen said that online shoppers have weaker product preference than consumers purchasing goods through traditional channels, and place less emphasis on the brand, because the Internet provides consumers with many replaceable and complementary categories.

Nevertheless, developers are still poised to cash in on the retail property market, statistics have suggested.

According to commercial real estate consultancy Cushman & Wakefield Inc, rents at department stores across the Asia-Pacific region grew 2.8 percent in 2012, largely fueled by growth in China.

Hong Kong, Beijing and Shanghai were among the five cities with the highest rents in Asia.

"The value of department stores lies in the unique shopping experience and services, which could be strengthened to offset the impact of online shopping," said Xu Feifei, brand strategy director at Labbrand Enterprise Management Consulting in Shanghai.

Retailers should step up their personalized game, offering more objects with new fonts and creative typography to attract a new generation of shoppers, said Chen.

"For instance, they could sell tailor-made products with a special color or pattern that is only available in brick-and-mortar stores," he said.

In the long run, online and offline shops are complimentary, said Jeff Baum, senior vice-president at Manhattan Associates Asia-Pacific, a company that facilitates supply chains.