Guang Bai Has Been Expanding Rapidly For 4 Years.

After a series of quick layouts, Guang Bai from the previous area.

But in the past four years, although the number of stores has doubled to 22, its business income has reached 5 billion 825 million yuan, but the network route of intime department store has jumped to 23, with sales exceeding HK $6 billion 500 million.

Similarly, regional department stores were born, but why did Guang Bai go out of a different track in the process of p regional pformation?

Leverage expansion

From the perspective of early development, Guang Bai is slightly conservative under the restriction of the state background. Its core stores are mainly concentrated in Guangzhou. Besides Zhaoqing stores, Huadu, Conghua and Zhanjiang outlets operate no more than 5500 square meters.

More than 60% of the company's performance depends heavily on Beijing road main store.

Intime department store was similar to Guangzhou 100 before 2007, mainly in the Hangzhou, Jinhua, Wenzhou, Ningbo and other Zhejiang jurisdiction, the "race walking" shop, Hangzhou single store performance in the company accounted for 63%.

However, in the capital market, intime department stores began to try to expand through acquisitions.

In the past 2005-2006 years, intime department store has raised the number of hundred big groups and the company.

Last October, Yintai bought 50% of Yansha friendship in Beijing, which operated 4 department stores in Beijing and Shanxi respectively.

1 months later, Yintai bought Hubei's 84% stake in the new century.

"Shen Guojun, the owner of Yintai department store, is a real estate origin. Its strategy of opening a department store by acquiring property is another way of expanding Yintai."

Jiang Zhihui, an analyst with Dao Heng Securities in Hongkong, said.

The reporter learned that the current group is running and preparing for the construction of the large department stores and shopping centers of nearly thirty, initially formed the framework of the national department store chain.

However, its own property also brings financial pressure to enterprises.

After the listing of Guang Bai, regional development began to increase.

The company also purchased new Daxin and Beijing road and new part of the city through two non-public offering. However, "compared to the retail enterprises listed in Hongkong, the P / E ratio is relatively low, but Hongkong's financing is convenient, which can provide impetus for further development."

Jiang Zhihui said, relatively speaking, there is limited space to expand capital leverage.

There are varying degrees of losses in new stores.

At present, Guang Bai mainly expands through the way of leasing property.

In 2009 -2010, the company signed 12 properties, including four shops in Jieyang, Huizhou, Maoming and Longgang in 2009.

In 2010, four shops in Wuhan Moore store, Chengdu World Plaza Plaza, and TAD land Plaza and new Daxin Panyu store opened in succession.

In the second half of 2011, four new stores, Zhujiang New Town store, rehabilitation square store, Phoenix Plaza store and Zhanjiang store, are expected to open.

However, "due to more stores in the incubation period, in 2010, although the company achieved a 25.78% increase in operating income, its net profit increased by only 5.1% over the same period last year.

In addition to the structural changes in sales, new stores are relatively short in age.

Ouyang Jinjuan, a researcher at Wan Lian securities, believes that since the cost of breeding stores has been basically determined, people need to be nurturing in place, sales reach a certain scale, and gross margins can basically cover costs, so that stores can achieve a break even before they can enter the period of performance explosion, so the growth of new stores is crucial.

It is understood that, as sales revenue has not yet been on scale, the seven new stores opened in 2009-2010 years have varying degrees of losses, and the overall losses are relatively large. However, from the four stores that opened in 2009, the operation showed signs of gradual improvement.

But Lu Ying believes that the Shenzhen store is in the new business circle, and Wuhan Moore City store and Chengdu Wan Guo Plaza store are also located in the non major business district of the city. These stores have larger volume and higher rental cost. These stores are expected to become a touch of the explosive growth of the company's performance and may also erode the company's profits.