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New World Department Store 280 Million Acquisition Of Shanghai To Strengthen Shanghai Layout

2013/10/16 11:14:00 85

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New World Convergence Three Or Four Line City

> a href= "http://news.sjfzxm.com/news/list.aspx Classid=101112107105" > New World Department Store < /a > China Limited announced that in October 11th, the company's indirect wholly-owned Affiliated Companies Shenyang New World Department Store Limited entered into a share pfer agreement with Shanghai Hanxin.

Shanghai Hanxin agreed to sell and Shenyang New World Department Store agreed to acquire all the shares of Shanghai Hui Department Store Co., Ltd., the pfer price is RMB 280 million yuan.

The announcement shows that Shanghai Department Store Co., Ltd. is wholly owned by Shanghai Hanxin. Its main business is to manage department stores in China, and Hui Department Store owns Hongkong new world department store, Shanghai Paris spring Wujiaochang store, located in Yangpu District, Shanghai.

according to the agreement, the pfer price will be paid in full by the new hundred cash in Shenyang and shall be paid within three months from the date of the issuance of the new business license of Target Corp and allocated by the new world department store's internal resources.

for the acquisition, the new world department store will help further expand the company's retail network and increase its market share in Shanghai.

"P" not long ago, the new world department store acquired Shanghai Hongxin Fashion Plaza, and again bought Shanghai spring Wujiaochang store in Shanghai.

Some market participants believe that the pace of expansion of "one city, many stores" in the new world department store is accelerating. The company continues to increase the number of its own stores through mergers and acquisitions, with a view to increasing market share and achieving economies of scale and synergy in East China.

Shanghai has been interpreted as the core base for the development of new world department stores in Southeast China. Up to now, there are more than 10 stores in Shanghai.

If the acquisition is completed, it will further expand the new world department store's business base in Shanghai, thereby enhancing brand image and enhancing regional competitive advantage.

it is understood that the new world department store's plan is that in the next three years, the total floor area of private stores will be nearly doubled to 200 square meters by opening new stores, mergers and acquisitions, and expansion of original stores. Besides, when the business matures, the company will continue to purchase management shops and turn into its own stores.

in addition to continuing to maintain the first and second tier cities such as Shanghai, Beijing, Wuhan and Shenyang, under the impetus of the new urbanization policy, the new world department store said that we should seize the opportunity to continuously tap the three or four line cities with potential for development, and quickly enter the emerging markets and expand the business scope of the group.

related reports: New World Department Store 280 million acquired Shanghai < a href= "http://news.sjfzxm.com/news/list.aspx Classid=101112107108" > Hui "/a". Department store mergers and acquisitions are becoming less popular.

after Wangfujing international department store Limited by Share Ltd (hereinafter referred to as "Wangfujing department store"), the controlling shareholder of Wangfujing international completed the acquisition of 96.72% stake in Hong Kong listed companies China Spring Department store.

yesterday, the New World Department Store China Limited (00825.HK, hereinafter referred to as "new world department store") announced that its wholly owned subsidiary, Shenyang New World Department Store Co., Ltd. (hereinafter referred to as "Shenyang new hundred"), has set up a share pfer agreement with Shanghai Hanxin Limited (hereinafter referred to as Shanghai Hanxin), and Shenyang new hundred has purchased 100% shares of Shanghai Hanxin Shanghai Shanghai department store Limited (hereinafter referred to as Shanghai Hui position) for 280 million yuan.

this time, Shenyang's new 100 acquisition of Shanghai's Hui posture coincides with the strategy of expanding its own stores in the "radiation city" and "one city and many stores" formulated by the new world department store.

"China's department stores have come to a stage of frequent mergers and acquisitions, and similar acquisitions will continue to emerge in the future."

Guo Zengli, director of China shopping center industry information center, said.

acquisition of "Hui Zi" /p >

Shanghai P was established in September 2006. Its main business is to operate Department stores and wholly owned Hongkong new world department store in Yangpu District, Shanghai, Shanghai Paris spring Wujiaochang store.

according to the person in charge of the New World Department of communications, since 2006, the new world department store has been buying for Hongkong new world department store, Shanghai Paris spring Wujiaochang store, and it will become a direct store of new world department store.

Less than P, however, from the performance of Shanghai's sinks for nearly two years, its business situation has gone from bad to worse.

In 2011 P, net profit after tax was 10 million 631 thousand yuan in Shanghai. After 2012, net profit dropped to 3 million 488 thousand yuan after tax.

the new world department store believes that the acquisition is in line with the interests of the company and shareholders. After the completion of the acquisition, the new world department store can further capture the potential of the rapidly growing domestic consumer market in a more favorable position.

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The new world department store also said that the move would further expand the group's retail network and increase its market share in Shanghai, and the direct investment in Shanghai could have synergy with the group's existing retail network in Shanghai.

"for sellers, it is important to stop in time when the pressure of survival is greater than the expectation of future potentials.

It is expected from the investment point of view that we will sell when we still have bargaining power.

Guo Zengli said that from the perspective of the industry, many people think that the risk of the retail industry is greater than the opportunity. However, for enterprises with better operation ability and strength, there are still big market opportunities for low cost expansion under the environment of economic fluctuation.

Shanghai P, a controlling shareholder in Shanghai, is an investment company. When the business environment is not good, 280 million yuan will be pferred to the new world department store, which is in line with its investment value.

general merchandise industry < a href= > http://news.sjfzxm.com/news/ > M & amp; /a > gradual heat > /strong > /p >

the new world department store management said in its semi annual 2013 report that it will continue to promote a steady expansion strategy: implementing the strategy of "radiation city" and "one city and many stores". On the one hand, it will actively explore potential projects in Beijing, Shanghai, Wuhan, Shenyang, Chengdu and other second tier cities, and on the other hand, it will radiate the business of the stronghold cities to the three or four line cities around.

In addition, the new world department store has publicly stated that the expansion path "will continue to increase the number of own stores actively through leases, mergers and acquisitions, etc.".

Guo Terry believes that the 280 million yuan acquisition of Shanghai new world department store is closely related to its current good operation status. "If its operation is healthy, it can better integrate the assets acquired and play a better effect."

In the financial year of 2013, under the circumstance of low retail environment, the new world department store increased by 14.9%.

Among them, operating profit (excluding other losses, gains and fair value of investment property) increased from HK $740 million to HK $824 million in the previous year, an increase of 11.3%.

under the circumstances of the continuous downturn of the domestic department store industry and the slow growth of retail sales, the new world department store has improved its performance by relying on the optimization of operation management, diversified marketing promotion and the innovation of the store image.

In the 2013 fiscal year, the growth rate of new world department store sales was 11.4%.

at present, there are 41 general merchandise stores in the new world department store, of which 36 are self owned and 5 are managed.

After the completion of the paction, the number of self owned stores in New World department store will increase to 37.

with the acquisition of spring stores in Wangfujing, with the sluggish traditional retail industry, the powerful department stores opened the curtain on the expansion of counter trend.

many people in the industry say that the M & a momentum of domestic department stores in 2013 is relatively hot, and similar mergers and acquisitions will continue to emerge in the future.