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    Wangfujing Department Store Sales Sluggish, Southern China Region's Performance Fell 12.53%

    2013/9/4 17:03:00 11

    Wangfujing Department StoreWangfujingDepartment Store

    A few days ago, the Wangfujing department store handed in the first half of this year's transcript. The report showed that although the gross profit margin of the main business of the Department Store increased by 0.44 percentage points, the net profit still dropped 3.6% compared to the same period last year. In the 7 areas of Wangfujing department store business, only Southern China has a negative revenue growth rate of 12.53%. Analysts believe that the northern faction brand Wangfujing department store in Southern China district because of "acclimatized" cold, a total of 3 stores in Guangdong and Guangxi not scale, coupled with a single format, the serious impact of the environment, the future performance is still under pressure.


       Southern China's performance fell by 12.53%


    According to the 2013 semi annual report released by Wangfujing department store, it achieved 10 billion 30 million yuan in revenue during the period, an increase of 10.61% over the same period, an increase of 6.64% in the same store, a net profit of 370 million yuan, a decrease of 3.6% over the same period last year, and the gross profit margin of the main Department of the Department Store rose to 17.59%. The company explained that the decline in net profit was due to the fact that the cost of the new store was still rising during the incubation period, and that the financial cost was substantially higher than the same period. New express reporter's inquiry report found that since the first half of last year, Wangfujing has increased two businesses in East China and Northeast China.


    It is noteworthy that in the 7 regions of central China, North China, Southern China, southwest, northwest, East China and Northeast China, the negative growth of Southern China's performance is only 12.53%. In response, the Wangfujing department store's board of directors responded that Southern China district had transferred the Shenzhen Wangfujing department store import and export trading company at the end of last year, which involved more than 1 billion yuan of revenue. This part of the sudden decline affected performance. However, reporters found that the previous report found that the sales volume of Southern China district has been declining since last year, with a negative growth of 0.19% and a negative growth of 0.07% throughout the year.


      Retail downturn Southern China District cautious shop


    In the first half of the year report, it is clear that sales in Beijing and Guangzhou stores are still lower than those in other regions. "Southern China District, a total of 3 Wangfujing stores, of which Nanning store has little impact on Oteri J's format revenue. Zhanjiang store opened at the end of last year, basically without contribution. The main sales revenue Guangzhou store was affected by the retail downturn, and sales really slowed down." Wangfujing's Board Office responded. The other side also mentioned that the cost of property in Southern China District, especially in Guangzhou, is very high, and regional expansion will be more prudent considering the return on investment.


    In addition, the net cash flow generated by Wangfujing during the current reporting period was -2.6 billion, which was positive during the same period last year, which means that Wangfujing's ability to obtain cash through operation has declined.


       Guangzhou single store sales hard to pull sales


    Wangfujing department store, which has been in the Guangzhou market for more than 16 years, is still operating in a single store. Last weekend and yesterday, when we arrived at the Wangfujing department store in Dongshan, we found that there were very few customers to shop. The 7 floor home appliances area was not even patronized by consumers.


    It is worth noting that it is located on the 2 floor. shoes The class area is bustling with excitement. As low as 70 percent off of the signboards attract many consumers, the men's wear area has a brand name of 1080 yuan jeans, which is reduced to 198 yuan, and the salesperson said it was a bargain price, so it was very cheap. Ms. Wang, a customer who wandered around the world, said, "although it seems to be a low discount, the price after discount is no different from that of other department stores. The style is even older, and it is really difficult to start."


       Missing expansion gold period is not easy to break through.


    Huang Wenjie, executive director of Guangdong provincial Circulation Industry Association, believes that the "how to adapt" the development of the northern department store in Guangdong and Guangxi is very important. When the Wangfujing department store entered Dongshan in Guangzhou, it has barely reached a foothold. However, its development has always been unsatisfactory because of its business philosophy, operation methods and commodity selection. On the first floor, they sold sugar coated gourd, and the choice of products did not appeal to consumers in Guangzhou. In fact, the Wangfujing operated by a local single store in Guangzhou has no scale advantage, and it is more obvious under the downturn of retail sales.


    "A few years ago, it was proposed to expand the area of Guangzhou shops and transform the format of shopping centers. Huang Wenjie believes that when Wangfujing entered Guangzhou in the year when it was more balanced and slightly profitable, it missed the golden age of expansion. Now it is not easy to break through again. He also analyzed that many brands are also considering how to save costs and maximize profits. Withdrawal from department stores is a normal phenomenon. Compared with strong department stores, Wangfujing has little advantage in retaining brands. "The restriction of scale is the constraint of Wangfujing in Guangzhou."

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