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    Sports Brand Stores "Downsizing" Channel Adjustment

    2013/3/1 8:43:00 12

    AntaLiningStore "Thin"

     
    < p > because of the whole industry downturn and high inventory problems, reducing the opening shop plan and closing some unprofitable stores became the common practice of the major sports brands in 2012 to deal with the crisis. < /p >
    < p > this contraction strategy is not only reflected in reducing the scale of stores, but also in controlling the quantity of suppliers. A few days ago, Anta (exclusive store) sports released 2012 annual report shows that in 2012, the number of sporting goods series and sports life series stores decreased by 590, in addition, Anta said it has taken the initiative to control the order quantity, so as to reduce the potential stock on retail channels. < /p >
    < p > < strong > store contraction continued < /strong > /p >
    < < p > > a href= "http://www.91se91.com/news/index_x.asp > > Anta sports < /a > first released 2012 performance report shows that by December 31, 2012, Anta's professional sporting goods shops and sporting life series shops totaled 8075, while the number of stores in 2011 is 8665. Anta also said that it will continue to reduce about 475 to 575 stores this year. < /p >
    Recently, information released by XTEP (franchised store) showed that 80 to 100 stores were closed last year, and 100 to 200 stores will be closed again this year, mainly in areas with more stores in Hunan and Anhui. < /p >
    < p > according to public data, Lining disclosed 1200 stores closed in the first half of 2012, while PEAK sports closed more than 1000 stores in the first three quarters of 2012. According to the operation data released by PEAK sports, as of the end of September 2012, the number of authorized retail outlets in China was 6739, a decrease of 1067 compared with the end of 2011, with an average reduction of 4 a day, while China's trend closed 569 stores in the first half of 2012. < /p >
    < p > in addition, the 31st degree also disclosed the news of closing 96 stores in the fourth quarter of 2012. According to the current data of closed stores, the total number of six major brands in 2012 has exceeded 3000. < /p >
    P > < strong > originates in the active adjustment of < /strong > < /p >
    < p > however, although the word "Guan Dian" is somewhat sensitive to the outside world, for the sports brand in it, it is more for the purpose of channel adjustment. < /p >
    < p > "from the present point of view, all those shops that are not profitable or have poor profitability". Insiders said. "Although closing some of the stores will shrink the market size and impact on business performance, most of the businesses that shut down will benefit from the long run." Zhu Qinghua, a light industry researcher at CIC, said in an interview with the media. < /p >
    < p > Anta said in its performance report that in the current market environment, the increase of store efficiency is more important than the growth of shop numbers. Therefore, in 2012, Anta strategically integrated stores with poor location or lease expiration, and strategically integrated sports life series stores in professional sporting goods shops to optimize overall store effectiveness. < /p >
    "P > < a href=" http://www.91se91.com/news/index_c.asp "> PEAK < /a > group CEO Xu Zhihua also said," the reduction of stores is just a representation, our fundamental purpose is to hope that the quality of each single store is even higher. After closing stores, we concentrate on investment and management of quality stores, which can improve the profitability of single stores. < /p >
    < p > < strong > year-end or improvement < /strong > < /p >
    < p > from Anta's 2012 earnings report, although Anta suffered its first decline since its listing in 2007. However, after the announcement of performance results, UBS continued to give Anta a "buy" rating with a target price of HK $9. UBS believes Anta has net cash of 5 billion yuan, and has the potential to distribute special dividends in 2013 and 2014. Lyon also pointed out that Anta has strong cash flow and reiterated Anta's "better than big city" rating, with the latest target price of HK $8.64. < /p >
    < p > in addition, Anta's orders fell by 10% to 20% in the third quarter of 2013, showing improvement over the first two quarters. Management expects that orders will fall further in the fourth quarter of 2013. It also points out that 2013 the same store sales and inventory levels in the first quarter will be slightly better than those at the end of 2012. UBS expects Anta's same store sales is expected to record a 0% or slight positive growth in the second half of 2013. < /p >
    He Ruibo, chief financial officer of XTEP P, also said not long ago that orders for orders in the first half of this year would be 15% to 20%, and that it would be expected to continue in the second half of the year. However, the company will continue to promote stocks through discounts and will close down the loss shops. It is expected that inventory problems and bookings sales will be clearer by the end of the year. A href= "http://www.91se91.com/pioneer/" > Lining < /a > is also expected to complete the channel revival plan by the end of this year, when some of the strength dealers will finish the inventory plan. < /p >
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