The “New Retail” concept has significantly reshaped the landscape of China’s retail sector. Increasing numbers of traditional retailers especially those with large physical stores have started to adapt to the new online reality by reinventing and transforming their business models and formats. They have set their goals to deploy online and offline (O2O) strategies, and leverage consumer data to integrate physical stores, e-commerce, logistics and payment tools to deliver a better shopping experience for consumers. Among them, Rainbow Department Store Co. Ltd. (“Rainbow”) is considered one of the forerunners.This issue discusses Rainbow’s business model, in particular its key O2O strategies to identify the successful factors of Rainbow as a sector leader in implementing the “New Retail” concept. It also includes the site visit observations and comments from Fung Business Intelligence on the latest shopping centre of Rainbow – Rainbow Xinsha Shopping Center, and Shennan Rainbow Department Store, which houses Rainbow’s first Sp@ce supermarket in Shenzhen.