Traditional Department Stores Are At An End?

10 years ago, he said that he would occupy the "Pacific market share of 1/4" in Beijing.

In September 8th, Pacific Department Store informed the Beijing PCCW member by text message that the store was about to close.

According to the SMS content promo, PCCW will be closed in October 25th.

According to the news, the Pacific Department Store Wukesong store will also be closed in the near future.

Tao Yucong, manager of the Pacific department store, Ying Ke, was appointed spokesman for the Beijing area to deal with customs issues. He said the reason for closing the store was that the lease of the property was due, and the rent raised by the other party was no longer renewed by the company.

A vice president of a world-renowned retail enterprise said, "the cost of labor is rising, the rent of property has risen, the purchasing cost of the upstream supply chain has increased, and commercial enterprises have been shouldering the social functions of stabilizing prices.

The helplessness of "tenants"

In the face of the public and the media, Tao Yucong never acknowledged the mismanagement of the Pacific department store.

He said that the main reason for closing the store was that the rent of the property was too high and the scope of the change was relatively large. Therefore, the decision to close the existing site and to find a new shop site in the future.

The above Pacific Department Store insiders confirmed this statement. "Although I have not come to the specific rent change data, I am sure that when the Pacific Department Store entered the Pacific Century mall, the rent of property was very low 10 years ago.

Now, the start-up capital of an ordinary shop needs 1 million yuan, which has greatly affected the normal operation.

The bottom line and online rental information of the property of the Pacific Century Center show that the price of the entire Pacific department store opened by the developer at the end of last month is 28 yuan / month / square meter.

The total area of the Deshang is about 65 thousand square meters, and the annual rent is 21 million 840 thousand yuan.

According to sources from Taiwan, because of the unsatisfactory planning in the store, the business circle changed and the owners of the building wanted to raise the rents significantly. In August 18th, the board of directors of the Pacific department store of China decided to end the operation of Pacific store Beijing Ying Ke Dian.

In addition, the Beijing Wukesong store in the Pacific department store was established in 2009. Due to frequent changes in owners and repeated delays in investment, the board of directors of the company also decided to terminate the lease with the new owners.

In response to this, Liu Hui, chairman of Beijing Chao Yi zero business consulting company, said in an interview that the owners of PCCW were originally Hua Xi Le Mao, and originally had to build large shopping centers. Therefore, it was necessary to introduce the main stores like Pacific department store. Last year, Hua Xile Mao changed his mind.

The Pacific department store, which once said that it would occupy the market share of 1/4 Beijing 10 years ago, now closes its stores.

Obviously, the explanation of "too high rent" is hard to convince.

But now, in the eyes of insiders, the Pacific department store is only a microcosm of the current business enterprise.

The bottleneck period of department stores?

Even though psychologically prepared, the two department store of Pacific department store, as a giant of department stores, has caused a great shock in the industry.

Some people in the industry even said that due to the change of consumption demand, the traditional department store mode similar to the development of Pacific department stores has encountered bottlenecks, and there will be a new round of elimination.

Huang Wenjie, executive director of Guangdong provincial Circulation Industry Association, also gave a positive answer.

"At present, commercial real estate has become hot money.

Some retail analysts have suggested that the beauty of the department stores must be alert to the erosion of profits, such as the cost of labor and the cost of rentals, and so on.

A number of analysts believe that we should be alert to the slowdown in consumption growth in the second half of the year, and the risk that the cost of labor and property continues to rise to the development of department stores.

High cost, continuing pformation and pressure from the online shopping mall are forcing traditional department stores to create profits.

"Self operated mode"

"For China's department store industry, in the past more than 20 years, the joint buying and selling mode has accounted for more than 80% of the industry, and the rest of the 10% take the buyout of goods and have the distribution mode of ownership, while the rest take the agency fee and take the sales mode."

Zheng Wanhe, chairman of the Limited by Share Ltd of Beijing Wangfujing department store group, said that the so-called joint pooling points, that is, the introduction of factories into stores, shopping malls to provide business sites, agents or brands to shop to open counters, agents operated, shopping malls unified charge, suppliers to collect fees and points of operation mode.

Zheng Wanhe believes that the mode of joint operation has weakened the autonomy of shopping malls, resulting in a small degree of differentiation in department stores, and it is difficult to implement a unified business philosophy.

"Although it's very difficult from the joint mode to the self run mode, it has to go."

Li Guoding, general manager of Shanghai Bailian Group Limited by Share Ltd, revealed that in the United States, Europe and other regions, such as Marsha's department store and other shopping malls, the mode of self operation, its comprehensive gross profit margin can reach more than 40%, while in the country, the gross profit margin of department stores in the first tier cities is only 20% left and right.

"If the proportion of self operated commodities in a department store can reach more than 30%, it will have the core competitiveness of sustained growth."

Li Guoding disclosed, "at present, the proportion of self-employed commodities in Bailian shares is less than 10%."

Li Guoding believes that self operated commodities include five modes: domestic general agent, general domestic distribution, overseas purchase, buyout sale, post registered trademark OEM production and self owned products developed by its own design team.

"But no matter what kind of products, we must look for seasonal goods. For example, clothing changes are too big.

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Touch net

In 2010, China's e-commerce market was booming. It is becoming a new force that can not be underestimated in the retail industry.

Following the formal launch of suning.com and Gome's urgent B2C business, WAL-MART announced its march into e-commerce, and the online shopping war continued to escalate.

Under the boom of online shopping, how does the traditional department store industry, which is attacked by franchised stores, convenience stores, supermarkets and online shopping, pform itself to obtain a stable market share?

The traditional department stores such as Beijing Wangfujing, Shanghai Bailian and Guangzhou department store, which first tried online business, now do not seem to be successful in their online businesses.

Xidan shopping mall launched IGO5 love shopping website in 2001. By February 2010, the IGO5 website has achieved profits and sales volume is more than one million yuan, but it is still less than Xidan's 1 billion 200 million yuan annual revenue volume.

So far, no department stores in China have explored a more successful model.

The future of the traditional department stores is uncertain.

However, in the rich department store industry, there are still a few subdivision providers who have handed out satisfactory answers. Although they are still relatively young, their growth rate and unique attention are attracting attention.