The Phenomenon Of "Back Tide" In Shanghai Gold Business Circle

< p > reporter on the spot statistics, at least 16 shops on both sides of Huaihai Road are closed.

According to the data provided by DTZ, the current rental rate of Huaihailu Road's retail property is 91.38%.

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Less than P, however, some people in the industry believe that the situation is not as bad as it looks. Although the vacancy of shops has created some depression, it still belongs to the normal commercial phenomenon that the tenants have eliminated, at least not enough to show that the prospects for retail industry in China are dim.

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< p > what is really worth noting is that the retail industry is faced with great changes reflected by the vacancy of shops.

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< p > "because the vacant shops are located on the first floor of traditional department stores, the phenomenon of rising vacancy rate in Huaihailu Road can be understood in a global trend: traditional department stores are declining and new shopping centers are replaced."

Sara Gougarty, director of China's global retailer Leasing Department, told reporters.

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< p > < strong > the survival space of local retailers is extruded < /strong > < /p >.

It is surprising that there are more than 10 shops on both sides of Huaihailu Road on the P.

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< p > the vacant stores are concentrated in the elevated section of Sinan road to Chongqing Road, which is 10 minutes away from the subway station, and the lack of subway passenger flow.

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In contrast to the P, the rental level of Huaihailu Road business circle has been rising, which has become the direct reason for the original retailers to choose to withdraw.

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< p > "over the past three years, the rental growth of Huaihailu Road business circle has stabilized. By the four quarter of 2013, the first floor average rent reached 54.8 yuan per square metre per day.

With the constant upgrading of shopping malls and the entry of high-end brands, the rental level of Huaihailu Road business circle still has room for improvement.

Shaun Brodie, director of China strategy research department, told reporters.

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< p > the vacant shops and the withdrawal brands include: Jordan sports at No. 366 Huaihai Middle Road, Shanghai famous brand down clothing store located at No. 614 Huaihai Middle Road, Herborist, 652 Huaihai Middle Road, Shanghai Vive, 652 Huaihai Road, and Quanjude, located at 786 Huaihai middle road. Their common characteristics are all local brands.

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< p > "generally speaking, the retail price can be taken up by 20%~30%, which accounts for the business income of the shops."

Shaun Brodie indicates.

According to the salesmen of nearby shops, the Shanghai famous brand down clothing store, which has been closed down, is about 100 square meters. The annual rent is around 2 million 500 thousand yuan, about 68 yuan per square meter. The high rent is difficult to cover for the weak sales.

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< p > this highlights that in the background of slowing domestic consumption growth and the impact of e-commerce, the mode of scale growth that domestic brands have relied on through extensive expansion is losing effect, and a more intensive location strategy becomes particularly important.

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< p > "Shanghai is becoming a world-class shopping destination. Rents show a continuous upward trend, especially in the golden section, where international brands compete to enter and establish their image by opening flagship stores, which brings enormous competition pressure to local retailers."

Ancient Sarah said.

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< p > < strong > the decline of traditional department stores < /strong > < /p >

P stores are mostly located in the old traditional department stores, becoming another notable feature of this round of Huaihailu Road's "back tide".

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The emergence of newly completed or refurbished shopping centres such as P and iapm and K11 has brought unprecedented challenges to traditional department stores, which can be seen from the differentiation trend of the rental level of the shops in the region.

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< p > "retail brand is more likely to enter the newly completed shopping mall on Huaihai Road. The new a href=" http://www.91se91.com/news/index_c.asp "> shopping center < /a > the rent level can reach 60 yuan per square meter per day, and is still growing. However, the department store shops along the street are facing the pressure of slight drop in rent, especially on the elevated section of Sinan road to Chongqing road.

Gu Sha Lu said.

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< p > "when the location of retail brand is taken into account, besides considering the factors of the lot, it will also consider the traffic of the surrounding people, the accessibility of the entrance, and the layout of the shop space."

Shaun Brodie said.

The newly completed shopping centres in Huaihailu Road are clearly more advantageous in these areas.

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"P >" gesso said, "different brands follow different location strategies.

Luxury brands, fast food brands, catering brands and so on are focused on location. In simple terms, the visibility of people and shops is of course the most important concern of retailers. In addition, the convenience and accessibility of pportation are also taken seriously. Whether or not it is close to the subway entrance is valued by retail brands, which is related to the sales potential of stores.

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A report by P Laifang pointed out that the retail environment needs to attract and satisfy customers through various innovative ways to arouse their emotional resonance.

Impromptu sales, art and cultural features, and display space will bring interest and surprise to customers, so as to avoid monotony and attract repeat customers.

Some excellent shopping centres clearly cater to this trend.

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< p > "the pattern of future market < a href=" http://www.91se91.com/news/index_c.asp "> polarization /a > will also be highlighted. The stronger the appeal of landmark projects will bring great pressure to the non symbolic projects of the new business circle."

Davies, the first Market Research Department of Taiping, believes that

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< p > < strong > < a > href= > http://www.91se91.com/news/index_c.asp > supply > /a > sharp competition: /strong > /p >

< p > the vacancy of shops in Huaihailu Road brings another interesting issue: is the retail market in Shanghai facing oversupply? < /p >

< p > according to the prediction of first Pacific Davies, there will be about 1 million square meters of new supply in Shanghai's retail market in 2014.

2015 and 2016 will continue to usher in a large supply, with new annual supply of about 1 million square meters.

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< p > "Shanghai will usher in a large number of new retail properties this year, but as the new supply is scattered, the actual situation is not as frightening as the data show."

Shaun Brodie thinks.

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"P", but in the case of continuous large supply, the increasingly fierce market competition is unavoidable.

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On the one hand, the supply of P is increasing. On the other hand, the slowdown in economic growth and the government's strict control over luxury consumption have put pressure on high-end brand sales, while shopping centres for the middle end and mass market are facing the pressure of homogenization and brand expansion.

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"P": "in the core business circle, the market competition is always full of gunpowder. But with the completion of more non core business circle shopping centers, Shanghai's retail market competition is evolving from the retail outlets that have been scramble for good retail brands to the competitive retail brands among the shopping center owners."

Ancient Sarah said.

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< p > in fact, the reality of the vacancy of more than 10 shops in Huaihailu Road has brought introspection to retail brands or commercial real estate developers: in the pformation of retail industry, more effective survival strategies need to be found.

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