PEAK Has Shut Down Thousands Of Stores This Year, And It Is Difficult To Retain Franchisees.

The number of stores has decreased.

PEAK sports released yesterday showed that as of September 30, 2012, there were 6739 authorized retail outlets in China, a decrease of 1067 compared with the end of 2011.

At the same time, the group's order situation has not improved.

The announcement shows that the total order volume of the group in the second quarter of 2013 (calculated at wholesale price) fell sharply from 20% to 30% in the same quarter of 2012.

among

The amount of orders decreased, clothing orders fell sharply, and the average wholesale price of products increased by zero.

This year, the number of PEAK's retail outlets has dropped sharply.

PEAK's recent business report released in May showed that as of March 31st this year, the number of retail outlets in the group was 7523, which was 283 lower than that in the end of 2011.

As of June 30th this year, the number of retail outlets was 7059, down 464 from three months ago.

From June 30th to September 30th, PEAK retail outlets closed 320.

According to PEAK, the group is carrying out the retail outlets optimization plan.

In the May report, PEAK estimated that the number of retail outlets at the end of 2012 would be 7000, and by August, PEAK would have cut the figure to 6500.

"The overall trend of PEAK is still declining, including the number of outlets."

Garment analyst Ma Gang told reporters.

In fact, in the whole

In the "cold winter", enterprises have slowed down the pace of expansion.

However, compared to Anta, XTEP and 31st degree, PEAK's store is undoubtedly the most closed.

According to the announcement, the first three enterprises reported that as of the first half of 2012, compared with the end of 2011, the total number of Anta sports shops decreased from 110 to 9187, while XTEP brand retail stores increased from 7 to 7603, while the net sales increased by 185 to 7865.

In the 2012 China Daily, PEAK explained that, compared with the first half of 2011, the average turnover of each PEAK authorized retail outlets in China during the same period in 2012 and the average turnover per unit retail area decreased by 30% and 34.3% respectively, which is consistent with the decrease in China's market turnover.

As for the reduction in turnover, it can be attributed to the inventory adjustment and weak economic conditions in the whole industry in the first half of 2012, resulting in a reduction in demand for sporting goods.

In this regard, senior industry analysts believe that PEAK's foundation in the channel is not very solid.

"PEAK channel management capability is not strong, so franchisees fleeing faster.

Of all the Fujian (Sports) brands, only the number of stores is the largest, which can explain a problem. Compared with other enterprises, PEAK lacks the means and methods to retain franchisees.

The person also said that the whole industry has problems, that is, the size of inventory.

Perhaps PEAK's inventory is large, and its franchisee's profitability is weak.

PEAK's China Daily reported that the gross profit margin of the group was 37.7% in the first half of 2012.

And XTEP's gross interest rate is 40.9%, and the gross interest rate of 360 1 degrees is 42.7%.

It is 41.8%.

Ma Gang believes that the downward trend in the garment industry will not change much in the short term.

"The adjustment of the industry will take some time.

As for when it is not particularly good judgement, because there are several levels of things, such as inventory, inventory health is an important indicator.

And whether China's economic trend will improve, this is also an important factor affecting the industry.

Ma Gang said.