Will 09 Years Of Supermarket Closure Come?

"Affected by the global financial tsunami, retailers at home and abroad are more or less affected. There are even rumors that individual foreign retailers are using Chinese funds to make up for foreign funds."

Wang Wei, a supplier of foreign retailers, told reporters.

In view of the foreign market, the US and Britain have experienced the collapse of retailers.

At present, 22 US retailers have filed for bankruptcy protection.

In Britain, WOOLWOTHS, a 100 year old shop with 818 stores, suddenly went bankrupt, causing panic in the supermarket industry.

Foreign retailers are not having a good life abroad. Are foreign retailers in China involved?

According to the reporter, B&Q has publicly admitted that this year is the most difficult year since its entry into the Chinese market. It has closed 4 stores in China, and the new shop plan will slow down.

According to sources, Tesco and Carrefour are now returning to suppliers in large areas, "mainly to ease the cash pressure. The industry even heard that Carrefour needs to deploy 5 billion euros in China to foreign countries."

Wang Wei said.

Li Jia, a public relations manager of Carrefour Southern China District, denied this to reporters yesterday.

Is the economic crisis the main reason to crush the supermarket industry?

Guo Yang, an analyst at Orient Securities, believes that it is just the last straw to overtake the camel.

The real reason is that many supermarket products are awkward, products are old and the capital turnover period is long, or when they are afraid of fear and fear of innovation.

He expects that in 2009, a number of supermarkets will break up the capital chain.

Next year, there will be a large number of supermarkets going bankrupt. The US retail industry is suffering from financial turmoil.

Data showed that retail sales in the US dropped by 2.8% in October, the biggest monthly decline since 1992.

More and more American businesses have declared bankruptcy. The United States has 149 department store chains, Mervyns, the second largest consumer electronics chain retailer (CircuitCity) and the largest furniture retailer LinensnThings has filed for bankruptcy protection.

The world's largest furniture and building materials retailer, HomeDepot, department store retailer Sears (Sears), Sears, a clothing retailer specializing in high professional women's clothing, and FootLocker, a sportswear and footwear retailer, are closing down the store.

In the past six months alone, large chain stores such as Starbucks, PacificSunwear, LaneBryant, fashion Bug and Catherines have announced the closure of a total of 1000 retail outlets.

In the same winter, there are British retailers.

Woolworths, a century old chain retailer, declared bankruptcy on November 27th (Thanksgiving Day) and commissioned Detroit's Financial Services Company as its takeover.

In addition, MFI, a home chain giant with more than 100 chain stores, invited the company to take over in November 25th.

Guo Yang, an analyst at Dongfang securities, believes that the rise and fall cycle of the retail unemployment in the mature markets of Europe and America is basically the same as that of the big economic cycle. There will be a big collapse in the next 10-12 years, and then another new format will be introduced and expanded rapidly.

In China, this cycle is 4 years, and every 4 years there will be a wave of collapse and bankruptcy.

In 2002, there was a wave. In 2006, a number of retail enterprises were also closed down. From the current situation, the downward macro-economy is likely to make this adjustment advance to 2009. There may be a number of supermarket enterprises with a certain scale breaking up and bankrupt.

The cash flow from returns has already been revealed. While foreign retailers are in a bad mood, domestic retailers are also having a hard time.

Tesco, the largest department store in the UK, has been running down for the past 9 weeks.

In China, Tesco (Tesco shares 90%) is launching the largest return campaign in history, and about 30% of the retained products will be returned to manufacturers.

For the large-scale return of Tesco, the industry believes that returns can reduce inventory and ease cash flow.

According to media reports, a person who declined to be identified in Tesco's purchase also admitted that the return was based on the need for companies to tighten their money and cut spending in the current economic situation.

The reason why Tesco returns is largely due to the disconnection between headquarters procurement and store sales.

The headquarters purchase of Tesco is in actual operation, and many stores have not sold many products, so we have to clean up some products.

"During this process, retailers will not refund the cost of entry fees and promotion services at the same time."

Suppliers are so responsive to reporters.

Therefore, the supplier believes that it is very difficult to exclude, retailers in order to collect more entry fees, continue to absorb more goods to enter, in the case of sales is not ideal return, so that not only reduce the inventory of retailers, but also can more money.

"However, Tesco also realized that the headquarters purchase and store sales were out of line, and began to adjust the purchase rights to various stores, headquarters did not participate."

Wang Wei said.

However, another problem also arises. The purchase of each store can not reflect the advantages of the headquarters procurement. Many dealers will not pay enough attention to the quantity, and it is difficult to form a scale advantage in terms of price.

However, Liu Ming, a supplier of Southern China District, has different opinions. Instead, the stores have regional advantages, so they do not need to be pported to headquarters to reduce distribution costs.

"And now is the era of small profits and quick turnover. Suppliers are also mainly looking at gross margin figures. They will not do less because they are less."

Do you want to change suppliers' funds?

It is learnt that apart from Tesco, a foreign retailer based in Shanghai is not only taking returns but also more radical in terms of supplier funding.

"Now every day returns, some just sent back in a week or so."

A supplier responded to reporters.

It is understood that goods sold to supermarkets in previous years will be sold out at the corresponding time, even if more goods can be left in the supermarket storeroom for sale, but this year returns are particularly frequent.

Wang told reporters why.

Generally speaking, the time of settling accounts between supermarkets and suppliers is two or three months, and the goods that have just been sent for a week or so are returned. The aim is to reduce the amount of money that should have been paid to suppliers, so that retailers can return goods continuously through continuous replenish, and the payments can be kept under constant pressure.

In this regard, suppliers are also helpless, and the contract signed with retailers shows that retailers can return unconditionally.

"For foreign retailers, there is a lot of rumors now, and even Carrefour wants to take 5 billion euros in China to go abroad."

Wang Wei said.

However, Liu Ming, a supplier in Southern China, thinks this is impossible. Under the strict foreign exchange control in China, it is not easy for foreign capital enterprises to withdraw funds.

Carrefour also made it clear that this is impossible.

It is learnt that in addition to the payment of suppliers by way of return, another foreign retailer also maintains the performance level of the supermarket by directly deducting the payment from suppliers.

According to introducing, generally speaking, suppliers will return to the supermarket, the gross profit margin of the original commodity is high, but the competition between the supermarkets is fierce, the price is constantly lowered, the gross profit margin is reduced, and the supermarket's return point is naturally less, so the performance of the supermarket is affected.

In order to ensure the performance of supermarkets, some supermarkets directly withhold suppliers' money to fill their performance.

A large price cut stimulates more cash flows. Foreign retailers are making more cash in order to make more money, and promote consumption through larger price cuts to win more cash flows.

WAL-MART once called "do not care about frequent discounts", but recently launched the "500 kinds of people's livelihood commodity price reduction".

Carrefour will also launch an unprecedented "price cut" storm that will reduce prices or involve thousands of products.

At large stores, retailers drive sales of department stores with high gross margins through discounts for necessities.

Insiders pointed out that in this round of wave, supplier profits will be squeezed or will last for at least 1 years.

To this, the supplier also feels very helpless.

WAL-MART, Carrefour and other large price reduction activities, because the loss of profits due to discounts, suppliers need unconditional sharing; in order to ease the pressure of cash flow, retailers need to reduce inventories, so the original order was cancelled without cause, the supplier's payment period was extended indefinitely.

As a result, the pressure of giants has shifted to suppliers.

However, Li Ka, manager of public relations in Carrefour, Southern China, told reporters that Carrefour's current large-scale promotional activities are just a routine way to stimulate the popularity of supermarkets. It is not because commodities are out of date or the economy is stagnant.

According to the introduction, Carrefour has four large-scale promotional activities in the year, including the Chinese new year, the annual anniversary of Carrefour in April, the annual Carrefour annual celebration in China in November and the eleven golden week.

In addition, Carrefour's regular promotion takes half a month as a whole year.

In this paper, Wang Wei and Liu Mingjun are aliases.

In the morning of December 10th, nearly 50 suppliers in Loudi's private market, Jia Le Jia supermarket, learned that the owner of the supermarket near the teachers' village in Loudi was suddenly shut down and shut down. Last night, he went to the supermarket to ask his boss to pay a about 1000000 month loan that he had not paid for several months.

When the boss did not expressly agree to settle accounts, many suppliers began cleaning up their goods at the Jiajia Le Supermarket.

By 10:30, there were more and more suppliers of goods to the supermarket.

Later, another group of debt recovery people began to join the camp because of the absence of the supermarket owner. They had to move things to pay debts, causing the scene to be chaotic.

Because Jia Jiale supermarket is located in the private market, many people were shopping nearby. Many people rushed into the supermarket and began to rob the supermarket.

As the situation is temporarily unable to control, in the process of looting, there have also been wrangling and fighting.

By 12:50, the supermarket where the goods were relatively complete was looted.

A citizen who did not want to be named told reporters that the looting caused nearly 1 million yuan loss. At present, the Loudi police have been involved in the handling of the incident.

(PK) will there be a supermarket closures next year?

Guo Yang, senior analyst at Dongfang securities chain industry: the supermarket closes up to 4 in 2009, and we observe a period of about 4 years.

There was a wave in 2002 and a number of retail businesses collapsed in 2006. We originally expected 2010 to be the next wave of supermarket closures.

But now, the downward macro-economy is likely to make this adjustment advance to 2009. It is very likely that a certain number of supermarket enterprises will break up and bankrupt.

The chairman of Guangzhou Chu Rui commercial company: the supermarket will not go bankrupt. The chairman and general manager of Guangzhou Chu Rui commercial company believes that it is too early to see the closure of supermarkets.

At home, it depends on how long the economic adjustment will take. At present, the consumption demand of the retail industry has not slowed down.

Specifically, to foreign retailers, the global financial tsunami may accelerate their adjustment, such as slowing down the pace of opening stores and expanding their plans.

Yang Jing: editor in charge