The Rent Surge "Overwhelmed" Retailers' Business Profits And Was Almost "Empty".

Since the beginning of this year, supermarkets and department stores have closed stores in many cities in China. The high rent of property is one of the important reasons for P. The survey found that the lease period of large commercial housing is generally 10 years. After the expiration of the lease, a large number of commercial enterprises unable to bear the rentals and soaring rents may fall into a "closed shop tide". Coexisting with this reason is that the investment in commercial real estate has become a "bubble" trend due to the investment diversion of residential real estate. < /p >
< p > rent soaring "overwhelmed" retailers < /p >
Prior to P, WAL-MART, Carrefour, Pacific department store and so on frequently exposed "shut shop" information in major cities across the country. Reporters interviewed found that the continuous high commercial real estate rent is the most important reason for the recent "retail shop" in the retail industry in China. < /p >
< p > by the end of May this year, Tesco Shanghai Zhenning store, which has been running for 10 years for a long time, has been officially closed due to the expiration of the lease contract. Another store in Shanghai city center may be closed in August this year due to the realty of the property and the expiration of the lease. < /p >
< p > Tesco Shanghai Zhenning store rented the storefront at the rent of 520 thousand yuan 10 years ago, and paid the rent for 10 years at once. However, the annual rent has risen to 1 million 740 thousand yuan, or more than two times, and the cost of labor has climbed steadily, so Tesco has chosen to close the network. < /p >
< p > Wang You, deputy general manager of Shanghai Hualian Ji Sheng Sheng, told reporters that Jilin grand shop face this year's lease expires, rent prices have more than doubled, and some outlets will be closed if they can not afford to raise prices. < /p >
< p > Wang Liang, director of Shanghai Institute of circulation economics, said: "the lease period of large business is usually 10 years -20 years. Since the opening of China's retail market in 2004, retail expansion has been going on for nearly 10 years, and many early commercial projects are due to expire. Because of the rapid rise in housing prices and the inability of some retail businesses to bear, there has been a wave of retailers closing up in all cities across the country. < /p >
< p > China chain industry association analysis also shows that in 2002 -2005 is the fastest time for chain stores to open stores. Quite a few stores have 10 years' lease, and the rent has doubled in recent two years. < /p >
< p > "the rising cost of rents has become the biggest burden of supermarket operation. The rent increase is not directly proportional to the growth of retail sales. Yonghui has two or three stores in Fuzhou which are forced to close because of the high rent." Weng Haihui, vice president of Fujian Yonghui supermarket, told the economic reference daily (micro-blog) that the Yonghui supermarket began to develop in 2001, and the lease terms were 10 years. At that time, the rent per square meter was basically 30 yuan -35 yuan, and then on the basis of 3 years increasing or increasing every year. The contract expires in two years. If the price is to be renewed, the price will rise to more than 60 yuan per square meter. < /p >
< p > commercial profits were almost eaten "/p".
< p > rising rents have eroded retail business profits, resulting in the shrinking competitiveness of the retail industry and becoming a "little old man". < /p >
Pu P, deputy director of the commercial real estate department of Shanghai, told reporters that at present, the rent of the shopping center in the downtown area of Shanghai is about 5 yuan per square meter per day, and the daily rental of the brand stores in the downtown area varies from thirty or forty yuan to seventy or eighty yuan per square meter. Coupled with rising labor costs and electric shocks, traditional department stores and supermarket shopping days are becoming increasingly sad. In most vegetable retail stores in Xi'an, Changchun and Ji'nan, rent accounts for 1/3 of the gross income of the stall. It has become an important incentive for the vegetable retail price to be doubled than the wholesale price. < /p >
Sun Weimin, vice chairman of sunning Yun Shang, said that Suning began to engage in chain stores in 2000. The proportion of initial rent accounts for 1.5% of sales. Now rents account for 5% of sales and 3 times more. This is the most unstable and fastest growing cost of enterprises. < /p >
< p > due to the rapid rise of commercial real estate rents in recent years, a large number of large department stores have abandoned commercial operations and become "big landlords" or "two landlords". Almost all of them have been making profits by way of joint venture with suppliers or directly booting in store stalls. < /p >
< p > Zhao Lijuan, director of Hongkong Li Feng Group, told the economic reference Daily: "why can't the mainland have a strong and brand retailer? Because retail profits are too thin to be eaten by high rent. Mature channel providers should understand the needs of users, help factories to produce products that are needed by the market, and nurture and guide consumers' needs. Now, most of the so-called "developers" are "real estate developers" and live on rent collection. < /p >
< p > the Ministry of Commerce's market construction division in 2011 showed that the number and area of large retail outlets in the country increased compared with 2010, but the turnover per unit area decreased by 6.7%. In some cities, there were problems of blind investment, duplication of construction and waste of resources in large commercial outlets in some cities, resulting in low operational efficiency and disorderly competition, and causing social problems such as vehicle congestion in golden areas. < /p >
< p > commercial real estate bubble appears < /p >
< p > commercial high rent gold on the one hand squeezes the retail business space, on the other hand, it also causes some commercial cities in the large and medium-sized cities to bubble. According to the interview, there are surplus commercial facilities in some central and large cities, and business enterprises are facing "investment difficulties", while the middle and low income groups are squeezed out of the shopping mall. < /p >
< p > experts point out that the average per capita business area of developed countries is 1.2 square meters, which is already a high level. At present, the commercial area of some cities in China has reached 2 square meters. According to the 2012 survey by international consultancy CB Richard Ellis, China accounted for 8 of the top ten shopping centers in the world. Chengdu is the third largest city in the world to build shopping centers. By the end of 2011, Chengdu's commercial complex project had exceeded 100, and the planned area was 10 million square meters. < /p >
< p > in Shaanxi, Shandong and other places, the impulse to invest in commercial real estate also makes some wholesale markets of agricultural products frequently occupy thousands of mu, or even thousands of mu. < /p >
< p > Pu Zhu Jian and other experts believe that in addition to the investment diversion of residential real estate regulation, the commercial development of the commercial property is also behind the development of the "unprofitable business, but demand for housing prices". The abnormal commercial development mode may oversupply large commercial facilities and step into the "empty City Season". < /p >
< p > "high rent not only squeezes the profits of the retail industry, but also drives back a lot of cheap products, which harms the interests of consumers, and runs counter to China's policy guidance to promote consumption and expand domestic demand." Qi Xiaozhai, director of the Shanghai Commercial Economic Research Center, told the economic reference daily that "some of the major middle grade brand merchandise businesses are gradually being withdrawn from the downtown area of the downtown area. A large number of middle-income and below consumer groups are gradually excluded from large shopping malls and shopping centers. Shopping centres are in an awkward situation where customers are gradually decreasing, and goods are not discounted and few people buy, entering a vicious circle." < /p >
< p > Wang Liang said that we thought that commercially marketed government means nothing. In fact, commercial facilities are related to people's livelihood and need network planning and necessary government regulation. In the past, our marketization was too open, and some regional outlets were too dense, too competitive, and rents remained high. In foreign countries, the planning of commercial outlets is well done, and the rents of commercial outlets are not allowed to be dominated by market behavior. Many Japanese retail lease contracts expire, and the government restricts the increase in rental prices. According to the new market situation, we need to study the relevant laws and regulations and rebalance the relationship between property and commerce. < /p >