Chengdu'S Retail Industry'S New "Play" To Deal With High Rent

< p > the urban core business circle has been soaring every year in recent years, which has resulted in the collective withdrawal of some brands in Beijing and other places. The constantly rising rental of the shops is changing the traditional retail business pattern.

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< p > recently, WOWO (China) facilitated the purchase of the first shop of the first floor of Astronautics Hotel and the four section of people's South Road in less than 1 months in the < a href= "http://www.91se91.com/news/index_p.asp" > Chengdu < /a >.

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< p > in recent years, many retailers in Chengdu have been subleased for buying to avoid the pressure of high rent, and traditional retail enterprises have begun to move towards the strategic pformation development path of "retail + real estate".

Ran Lichun, President of the Sichuan provincial Chain Commerce Association, said in an exclusive interview with Tianfu Morning Post reporter that the current single fixed rent mode no longer adapes to the highly competitive retail market, and many retail enterprises have begun to pform their property or cooperate with developers.

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< p > < strong > status < /strong > < /p >

< p > < strong > high rent, shops < /strong > /p >

< p > < strong > > losing money and earning money > < /strong > /p >

< p > in recent years, under the background of the lack of macroeconomic growth, the rents of commercial outlets should have declined, but the market has done the opposite.

The rental of shops exceeds the average level of market economy growth.

Represented by Chunxi Road business circle, its rent has been increasing year by year in recent years.

The Sichuan Chengdu chain business development report released recently by the Chunxi Road chain business association shows that compared with 10 years ago, the rental of Chunxi Road shops rose by about 10 times.

Under the pressure of high rent, those sports brand shops such as Lining and Anta, which were once popular in Chun Xi Road, and the Bertelsmann bookstore, the world's top five hundred enterprise from Germany, are all overburdened.

The 2013 Chengdu chain business development report shows that, at present, the central business district of Chengdu, including Chunxi Road, Yanshikou, Hong Zhao wall and Mulam City, has the highest rents of Commercial Street property shops, the average rent of the first floor is about 4000 yuan / month square meters, the Department Store property is the second, and the first floor rent is about 2000 yuan / month / square meter.

Compared with the first floor rent of the New South World Shopping Center ranked second, it is 10 times higher than the first floor rent.

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< p > the rent of Chunxi Road business district is soaring, and the brand stores are coming and going. But in fact, the vacancy and pfer of shops in Chunxi Road pedestrian street seldom appear.

Many brands are willing to pay high prices. Why? /p

"P >," ran Li Chun explained. "For example, WOWO has a storefront next to the first city. The store is ralingly high, and as far as I know, the shop has been in a state of loss.

But in Chunxi Road pedestrian street, you can rent a billboard about 1000000 a year.

In this way, opening a shop in Chunxi Road is like putting a live billboard, more of a losing sell, and earning a brand value.

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< p > < strong > solution 1 < /strong > < /p >

< p > < strong > self possession property < /strong > < /p >

< p > < strong > retailers sublease for buy < /strong > < /p >

< p > < strong > adopt "retail + real estate" < /strong > < /p >.

< p > WOWO (China) has conveniently purchased the first floor shop of Astronautics Hotel, < a href= "http://www.91se91.com/news/index_s.asp" > shop < /a > and people's South Road four section in Chengdu.

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Cao Shiru, chairman of the red flag chain, said last year that the store store purchased by the red flag chain has accounted for more than 10% of all the stores in the company, < /p > P.

< p > rental prices rise, making the pressure on retail enterprises operating with light property assets increasing.

The industry expects that commercial real estate will remain at a high speed in the next few years. The problem of rising rental prices will continue to constraining the development of retail enterprises.

Under such pressure, in recent years, many retailers with financial strength have begun to test their own property and take the strategic pformation of "retail + real estate".

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< p > WOWO (China) conveniently recently purchased the first shop in the four section of Astronautics Hotel, the first floor shop and the people's South Road in Chengdu.

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Cao Shiru, chairman of the red flag chain, said publicly last year that the store store purchased by Hongqi chain has accounted for more than 10% of all the stores in the company. And Suning announced in 2010 that it had spent 300 million yuan to buy the 1 to 6 floors of the Zheng Xi International Building, which is 16 thousand square meters in the total area of Chun Xi business circle, and to build the largest fourth generation 3C+ flagship store in the southwest region.

The expansion mode of "retail + real estate" is frequently staged in Chengdu.

Normally, rent is the embodiment of business operation ability, and the rent will be raised accordingly.

"But this is not the case in the current market. Rents have become a way of reinvesting real estate developers.

Developers have rented their rents before they are operating, and rented them to retailers at a high price to allow retailers to operate with huge cost pressures. This is clearly a problem.

"When rent increases have exceeded commercial normal operating capacity, subleasing can also become a trend. Even if I do not operate well in the future, my property will be able to appreciate," ran Chun said.

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< p > for the current trend of self-sustaining property in the retail industry, the industry also has the objection: self possession property needs huge capital support, and if the bubble economy breaks down, it will easily lead to capital chain breakage.

Li Gang, deputy general manager of the first Grand Canyon shopping center, said that most of the retail businesses in Europe and America, including Japan, including department stores, supermarkets, shopping centers and so on, were mostly in the form of leasing.

Their consideration is, "I am a commercial, not a real estate," so I want to operate in a light asset mode, so that it can increase its capital circulation and turnover.

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< p > < strong > solution 2 < /strong > < /p >

< p > < strong > joint venture cooperation < /strong > < /p >

< p > < strong > retailers and Realtors form an interest community < /strong > < /p >

< p > < strong > the sales commission is the way to pay the rent. McDonald's generally pays the landlord 7% to 9% /strong < /p >.

< p > < strong > leasing of foreign retailers such as Carrefour and WAL-MART is "rent + Royalty" mode < /strong > /p >

P > the traditional single fixed rent model is now becoming more and more pressure on retailers.

In the face of the rising rental of shops, the way of cooperation between developers and retailers has become an option besides building property.

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< p > "adopting the cooperation method of" joint operation and cooperation ", one can stabilize the pressure brought by high rent to retailers, and real estate developers can also enjoy the future interests of the business circle after nurturing and maturing.

According to Ran Lichun, "joint venture cooperation" in the Chengdu market generally shows that retailers and real estate developers achieve "sales Royalty" or "bottom rent + Royalty" lease.

"As I know, foreign restaurant chains, McDonald's, Starbucks and so on generally use the sales royalty to pay rent.

McDonald's generally pays the landlord the < a href= "http://www.91se91.com/news/index_s.asp" > business < /a > 7% to 9%.

The leasing of foreign retail businesses such as Carrefour and WAL-MART is the mode of rent plus royalty.

It is understood that the "fixed rent + commission mode" has been very common in the retail industry of developed countries.

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