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Sports Brand Closed Shop Tide Continues XTEP Intends To Close Hundreds Of Stores

2013/2/20 10:35:00 24

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if the number of stores close to last year's a href= "http://sjfzxm.com/news/index_x.asp" > XTEP < /a > closed last year, the total number of sports brand stores last year will exceed at least 3000.

At present, Guan Dian tide has become a trend that the industry can hardly get rid of.

An investment bank source told reporters that "these sports brands had a higher price earnings ratio in order to attack the listing, so they were willing to open their stores at the expense of the original capital, but now they are just a helpless performance of being kidnapped by the capital market."

"P", chief consultant and CEO Zhang Qing, a key sports information company, also said: "the blind expansion of sports brand is actually a result of capital drive, and now we all have to break arm to survive.

The whole industry will usher in a major reshuffle, and now we will see which brand reform is resolute.

"closing shop strength is still not enough" /p >

"P", the only one of the six major sports brands that has not yet announced the closing of its store, said recently that it was implementing the closing shop plan. "XTEP"

According to Hongkong daily news, XTEP chief financial officer He Ruibo predicted that XTEP closed 80 to 100 stores last year, and intends to close 100 to 200 stores this year, mainly in Hunan and Anhui.

He Ruibo also said that the company's inventory pressure is expected to become clear at the end of this year.

He pointed out that in the first half of this year, orders of 15% to 20% would be reversed, and it is expected to continue in the second half of the year, but the company will continue to promote stocks through discounts and will close down the loss shops.

in order to reform channels and digest inventory, a closed shop tide has been staged in various sports brands.

a href= "http://sjfzxm.com/news/index_f.asp" > Lining < /a > (02331, HK) has always been the focus of attention. As Lining's 2012 China Daily reported, Lining has closed nearly 1000 stores in the first half of last year, and the number of stores has decreased to 7303, and the number of closed stores will also rise in the annual reports released soon.

Jin Zhenjun, executive vice president of Li Ning Co, said in an interview that "Lining is currently carrying out the channel reform. We are carrying out a channel adjustment. In the process, we should close the unsuitable store."

compared with Lining's weight, PEAK sports (01968, HK) also face great pressure.

After closing 747 stores in the first half of last year, the pace of PEAK shop has not slowed down.

According to the third quarter earnings report last year, PEAK closed more than 300 stores in the 3 quarter of last year.

According to PEAK's retail network optimization plan, by the end of 2012, the number of retail outlets will be reduced to 6500.

As of the 3 quarter of last year, PEAK's body size was reduced to 6739 stores, which means that PEAK still needs to close at least 200 stores in the fourth quarter of 2012.

By this calculation, the number of PEAK stores closed to 1300 in fiscal year 2012.

besides PEAK, another sports brand from Jinjiang, Fujian, < a href= "http://sjfzxm.com/news/index_c.asp" > Anta < /a > Sports (02020, HK) is also implementing the store closing plan. According to the semi annual report, Anta has closed at least 110 stores in 2012.

At the same time, China's trend (03818, HK) in the first half of the year, the total number of Kappa brand stores decreased from 3119 at the end of the year to 2550 now, reducing 569.

the 31st degree (01361, HK), which has not been shut down, has been disclosed recently in the fourth quarter of 2012. During the period, the net increase in the franchise was only 12, with 108 newly opened shops and 96 closed stores.

only in the semi annual report of 2012, the number of stores in the six major sports brands is still an alarming volume: Anta 7807, Lining 7303, 31st 8050, XTEP 7603, PEAK 7059, while China has 2550 trends.

An unnamed insider said, "at present, the adjustment of major brands is not yet in place, and the strength of closing stores is still not enough."

according to the current channel situation of various brands, "the reshuffle of the terminal market is underway."

The industry said, "from the earnings data, each brand's performance growth pressure is very great, industry shuffling is currently manifested in the number of stores changes."

inventory crisis is seen in the second half of the year

While P stores continue to close, the total volume of orders will continue to decline, which is an inevitable trend.

In 2013, the order data of Q1 were not ideal, and the brands like Anta and XTEP declined by about 20%.

Subsequently, PEAK also announced that the company's order situation is not optimistic, the total number of orders in the second quarter of 2013, compared with the same quarter in 2012, a decrease of 20%~30%.

"order order is a side reflection of channel inventory."

The industry said that due to the pressure of inventory, all brands will adopt a very conservative strategy this year.

although in 2012, various brands increased their sales promotion efforts, large scale discounting shops and factory shops were slowed down, but the situation was still grim.

"Although the old stock has some digestion, but the new product has been developed continuously, the total volume of the industry has not changed, and the terminal market has not changed well."

Zhang Qing pointed out that "at present, the depreciation time of goods is shorter, and within one to two months, the degree of depreciation is very alarming."

"on the current market discount sales and channel situation, inventory pressure is difficult to alleviate in the first half of this year."

Zhang Qing said, "the inventory pressure of the industry will not change until the second half of this year."

He Ruibo also said, "it is estimated that by the end of, inventory problems and orders and sales will be clear."

pay for the capital market

the malpractice of extensive development is not the result of these brands, but the inevitable result of kidnapping by the capital market.

The investment bankers said.

the investment bank told reporters that before the listing of a sports brand, 4 or 5 stores of the brand could be seen on a street in a three line city.

This phenomenon is crazy on every sports brand.

"In fact, the logic behind this is very clear. These retail enterprises are listed in Hong Kong. The final issue price earnings ratio is actually based on the number of stores in the enterprise. The more the number of stores you have, the higher the price earnings ratio will be issued.

Before listing, these brands are crazy to "gain fat" in order to get a good return.

After P's successful listing, these brands are actually more difficult to escape the curse of the capital market.

"According to the requirements of capital market, listed companies must ensure the growth of their performance in quarterly, interim and annual reports," Zhang Qing said.

Extensive growth is most consistent with the strong expectations of the capital market.

By opening more and more business models, these sports brands can easily achieve very bright financial indicators.

in this game with capital market, these young sports brands are "kidnapped" unconsciously.

Now, we have to eat the bad results.

Zhang Qing told reporters that "closing stores to inventory is the performance of breaking arms to survive, and all brands have to pay for the sudden growth of the past hurricane."

Zhang Qing revealed that many stores before the listing of sports brands are inefficient stores. Nowadays, once the industry is in a downturn, the dealers in the lower reaches of the channel are not good enough. These brands have begun to face up to their problems, close some inefficient stores, and optimize the channels to ensure the sale of efficient storefronts.