Fuzhou Department Stores Adjust Their Formats To Reduce Clothing Into Trends

Following Shimao department store After the "reduction of costumes", Dongfang department store has also welcomed the biggest adjustment in the past 5 years, reducing clothing area, increasing catering and other formats.

Recently, reporters at the Dongfang department store store saw that the newly introduced Caffebene, the largest coffee chain in Korea, was opened on the first floor. The Department's responsible person confirmed to reporters that the Eastern Department Store Group store has welcomed the biggest adjustment in more than 5 years, and introduced light catering, early education and other formats. At present, it is in the early stage of adjustment. This year, the light catering business represented by coffee and west point will account for 20% of the department stores. According to the introduction, the two layer of the international second-class fashion dress brand is also adjusted to the 1/3 shoe area.

Since last year, many of them include Shimao department store and Dong Bai Yuan Hong store. Fuzhou Department stores all took the step of "reducing costumes". Among them, Shimao department store was the most vigorous, and the clothing business was reduced to 20% from 80%. After adjustment, the whole department store format 60% is concentrated on entertainment and leisure.

Why are the department stores eager to adjust? annual report Performance is evident. The annual report released by Dongbai group in 2013 shows that department stores' revenue and gross profit margin have all declined year by year, of which Fuzhou's operating income is 1 billion 752 million 360 thousand and 700 yuan, a decrease of 1.63% over the previous year. One of the main reasons is that its high-end brand store Dongfang Qun store is affected by the economic environment, and the sales of luxury goods have dropped sharply.

In many industry circles, the retail industry has been on the decline for the past two years, and the hardship of the economic environment has caused the electricity supplier to scramble for the market, and the shopping center has springing up everywhere, making the department store's downturn trend more obvious. Under such a big background, it is inevitable that the "big operation" will seek breakthroughs.

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In recent years, Yonghui and Xinhua have begun to expand nationwide, and the number of stores has increased rapidly. But last year, the development of the two supermarkets in the foreign markets appeared completely different. Among them, Yonghui continued to expand, while Xinhua all contracted the front line. At the beginning of last year, several stores were bought and sold in Ningbo, Changzhou, Taizhou and Hangzhou. Xiamen and Quanzhou also closed several stores.

These two totally different development trends will inevitably affect the overall business performance. Xinhua said that the main reason for operating losses is the large losses in the operation of the stores in eastern China, as well as the intensive efforts to deal with the loss shops in eastern China and those in Fujian province. The resulting losses and costs of disposable assets have risen sharply.

The growth of Yonghui's performance was also mainly due to the development of the foreign market. The supermarket said that the performance of the new district was outstanding last year, and the income of East China's large areas doubled, and the new districts such as Henan had achieved a rapid growth of about 50%. Yonghui responsible person also said that last year, Chongqing's overall sales exceeded Fujian for the first time.

According to the analysis of the insiders, a big problem in the expansion process of enterprises is that they may be acclimatized, which involves the business environment, the living habits of the citizens, and many other retail businesses. It is easy to expand the culture and business models of the two enterprises.