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The Department Store Industry Is In A Downturn.

2014/5/18 19:47:00 53

Department Stores Modern Department Stores Quotations

April 15, 2014, the largest private department store in Guangzhou, Guangzhou modern department store Limited by Share Ltd (hereinafter referred to as "modern department store") is listed on the "new three boards".

the modern department store which has long relied on its own funds to accumulate and develop and is partial to Guangzhou has a relatively small scale. Its store expansion pace still has a certain gap with the listed companies in the same industry.

After the completion of the shareholding system reform in late 2007, it once entered the guidance period of listing, but eventually failed for a variety of reasons.

The modern department store, which is blocked by funds P and IPO, has been fighting for the new three boards. On the one hand, it meets the needs of financing, and on the other hand, it lays the foundation for future capital operation.

Modern department stores say that after getting the new financing, the modern department stores will move towards the direction of "entity store + electricity supplier + mobile technology".

but the industry pointed out that even if we successfully landed on the "new three boards", there are still a lot of problems to be solved in modern department stores: in recent years, the profit of modern department stores has been declining year by year, and there has been a significant loss last year. In the case of new stores expanding, the net profit will be more difficult to profit from in the short run. In the new store's incubation period, the risk of relatively concentrated business performance is also difficult to solve in the short term; the property rights of the head office in the half of the revenue market are not clear, which may bring huge instability factors; and it is not easy to try and format pformation to cope with the downturn of the industry and the rush of the electricity supplier.

if modern mines are not cleared up in time, modern stores will be hard to laugh.

moving to "new three boards" curve financing .

"Guangzhou modern department store Limited by Share Ltd public pfer instruction" (hereinafter referred to as "instruction manual") shows that the registered capital of modern department stores is 45 million yuan, the planned share allotment is 45 million shares, and the original stock is 1 yuan each.

from the information disclosed in modern department stores, we need a lot of financial support for its new store development, expansion of entity network and e-commerce development.

Before being affected by capital, the speed of development of the company was limited.

The successful landing of the new three boards can satisfy the demand of modern department stores for financing.

in fact, the idea of modern department store listing has a long history. In December 13, 2007, the modern department store was changed into a stock company as a whole.

After the completion of the shareholding system reform, the modern department store has been listed on the "road". Last year it met with the IPO suspension. In addition, it was affected by the big environment. After the opening of two new stores, its performance was under pressure.

successful landing of new three boards means that modern department stores can make use of directional issuance of shares, issuance of corporate bonds, equity pledge loans and other means of financing.

Huang Wenjie, executive director of Guangdong Circulation Industry Association, revealed that many retailers and large electricity suppliers who did not enter the Guangzhou market had contact with modern department stores, hoping to buy shares in modern department stores.

in Huang Wenjie's view, foreign department stores have never been able to open up territory in Guangzhou, while modern stores have eight stores in the Guangzhou market. This unique network resource still has great advantages.

The listing of new three boards will make investors feel more confident that modern stores will become more pparent.

Huang Wenjie said that if new shareholders enter and bring in some high-quality resources, they should be able to drive the performance of modern department stores, which is more conducive to modern and sustainable growth financing.

, according to the insiders of modern department stores, the company's move to the new three boards does not mean stopping the pace of listing. Instead, it hopes to use the new three boards as a springboard, and still expects to switch to the medium and small boards in the future.

data show that modern department stores opened in 2002, and the main retail business is fashion wear products. The company was founded by five natural persons including Zhou Qiang, Li Lianying, Zhang Shaowei, Zhang Zewen and Li Xiaofeng.

The registered capital of the company is 45 million yuan.

Among them, the chairman of modern department store Zhou Qiang accounted for about 24% of the stock.

in Zhou Qiang's view, the strategic determination of the business mode and the accurate positioning of "fashion and price excellence" are of great importance to the modern department store in Guangzhou.

The location strategy of the "sub core belt" of the growing central business circle also allows him to accurately place the chess pieces of the modern department store on the chessboards of all suitable business circles.

at present, the modern department store has 8 stores, which are all distributed in Guangzhou. The actual operating area is about 150 thousand square meters.

Its official website shows that the existing 8 stores are gang Ding shop, Hai Dian shop, Whampoa store, holy land store, Huadu shop, Xintang store, Beijing Road store and Xicheng store.

modern department stores said that since its establishment, the company has been relying on its own funds to accumulate and develop. There is still a certain gap between the expansion pace of the stores and the listed companies in the same industry, and the store network is mainly distributed in Guangzhou, with relatively small sales scale and insufficient influence in other parts of the country.

industry pointed out that large-scale channel construction may be the future expansion direction of modern department stores.

The expansion needs a lot of capital support, and the demand for modern three board financing is even more obvious.

it is understood that the next area of modern department store expansion is the key areas under the city of Guangzhou. At present, in addition to Panyu and Nansha, other areas of Guangzhou's modern department stores have access to physical outlets. Panyu and Nansha are the next priority areas to expand.

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industry pointed out that even if we successfully landed on the "new three boards", there would be a lot of problems to be solved in modern department stores.

from the camp, the performance of the modern department store has always been envious of the industry.

It is reported that the shop is the first store of modern department stores. In 2011, 2012 and 2013 1-8, the revenue of the head office was 527 million 492 thousand and 700 yuan, 539 million 271 thousand and 700 yuan and 325 million 198 thousand and 700 yuan respectively, accounting for 55.12%, 54.76% and 48.69% of the company's operating income respectively.

During the reporting period, the net profit of the head office was 40 million 42 thousand and 200 yuan, 41 million 276 thousand and 800 yuan and 36 million 58 thousand and 600 yuan respectively, which was the main source of the company's profits.

but this also means that modern stores are quite dependent on the head office.

In the new store's incubation period, the risk of relatively concentrated business performance is difficult to solve in the short term.

modern department stores also said in the prospectus that because the new stores in department stores usually need to be nurtured, the incubation period is different depending on the business area, customer volume, brand awareness, store operating area and fixed costs.

At present, there are 8 stores in modern department stores.

With the increase of business performance of new stores, and the increase in the number of stores passing through the loss period, the problem of higher net profit contribution will be gradually improved. However, because new stores usually need a certain amount of time to cultivate and new stores open up the possibility of loss exceeding expectations, the risk of relatively concentrated business performance is difficult to solve in the short term.

according to the modern department store, the solution to the problem of concentration of performance depends on the improvement of other stores, especially the performance of new stores.

but the performance of modern department stores in the past three years is not optimistic, operating profits have declined year by year, and there has been a marked loss last year.

The manual shows that the operating income of modern department stores in 2011, 2012, and January 2013 ~8 is 956 million 988 thousand and 100 yuan, 984 million 811 thousand and 400 yuan and 66 million 942 thousand and 200 yuan respectively, with net profit of 40 million 100 thousand and 300 yuan, 22 million 609 thousand and 300 yuan and -2368.86 million yuan respectively.

Less than P, the main reason why modern department stores continue to decline net profit and operating capital is attributed to the drag of two new stores.

Modern stores in July 2012 and December 2012, two new stores, namely Beijing Road store and Xicheng all stores, the current profit situation is not optimistic.

In 2012 and January 2013 ~8, the total losses of the two new stores were -1758.64 yuan and -4671.23 yuan respectively, which was a drag on the company's overall performance.

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< --EndFragment-- > the report points out that the increase in rental and management fees, utilities and labor costs of new stores leads to a continuous decline in net profit.

At the same time, new stores need time to cultivate in terms of passenger volume, brand awareness and customer trust. Business revenue is difficult to cover its main fixed cost in the short term.

insiders pointed out that due to the fact that two new stores in the modern department store are still in cultivation period, the net profit in the short run will be more difficult to pfer from profits to losses.

P also admitted that in the next few years, if the main cost of rents and management fees, utilities and labor costs continued to rise, if the sales of new stores could not grow rapidly, the net profit of the company would be further declined.

Companies will also consider closing stores if business growth is slow and losses exceed expectations.

It is worth noting that in 2011, 2012 and the ~8 month of January 2013, the net operating cash flow of modern department stores was 51 million 542 thousand and 900 yuan, 40 million 794 thousand and 500 yuan and -5954.15 million yuan respectively.

The "instructions" showed that the operating cash flow of the company in January 2013 ~8 was negative, mainly due to the large net outflow of operating cash in the two new stores.

"manual" said, January 2013 ~8 menstrual battalion cash flow is negative, mainly due to the two new stores operating cash outflow is relatively large.

If the operating cash inflow generated by the sales revenue of two new stores can not cover the payment of suppliers and major fixed costs in the next few years, the net operating cash flow of the company may still have a negative number, which will adversely affect the company's continued operating ability.

in addition, the property rights of the head office property are not clear, which may bring huge instability to the development of the company.

It is reported that the rental property of the modern department store is the Logistics Department of the Guangdong Provincial General Logistics Department of the armed police force. Although the lease contract has been handled by the competent department of the Guangzhou municipal government in accordance with the law, the Logistics Department of the Guangdong Provincial General Logistics Department has not handled the property certificate and the land use warrant.

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A common problem faced by modern P department stores is that the department store industry is still weak, and the slow growth of sales and the shrinking of profits are the general trend of the whole industry.

Within the industry, it is expected that the price war of department stores will be upgraded this year, and the deep adjustment of internal operation of department stores will continue.

And the continuous promotion of consumers has been numb and strong, so it is still a long time to recover.

the annual report which has been disclosed in 2013 shows that Guangzhou friendship has achieved 4 billion 92 million yuan of business income, down 8.26% compared with the same period last year, while the share of Guang Bai stock has increased by 5.59%.

According to Wanda Group, Wanda's revenue reached 15 billion 490 million yuan last year, an increase of 39% over the same period last year, and only 91% of the adjusted plan was completed.

In addition, Wanda's net profit increased by 7% and its losses continued to expand.

This is also the first time that Wanda has failed to complete its profit plan in history, and it is also the only company that has failed to fulfill its target.

flush iFinD data show that in the first quarter of this year, 14 of the 21 listed companies in the department store industry appeared to have negative revenue growth. Among them, Hangzhou's 100% year-on-year decline was 20.56%, 13 companies had negative net profit growth, and Nanning department stores fell 88.19%.

the analysis report of the Bank of China believes that the slump in the department stores results from the decline in the overall business climate.

according to the new express, at present, many department stores have stopped expanding due to the pressure of performance. In terms of Guangzhou's situation, except for Tianhe City Department Store's new stores, there are no news of expansion of 8 department stores including Guang Bai department store, Guangzhou friendship and modern department store. The company's extension and expansion slowed down, and the same store sales declined, resulting in a negative growth in sales.

it is worth noting that 9 department stores had a decrease in gross profit margin in the first quarter.

At the same time, the rise of human and rental costs has become the "killer" of "killing" net profits.

Data show that the sales cost of 14 department stores is increasing.

In addition, a number of department stores have mentioned that the pressure on performance comes from reduced operating income and increased promotional expenses.

financial experts point out that the amount of advance accounts actually indicates the future profits and profits of enterprises.

The biggest embodiment of the Department's accounts receivable is shopping cards, and by the "frugal wind" influence, the issuance of shopping cards is reduced, and the decline in the advance accounts receivable also makes the performance of department stores listed companies seriously decline, and the industry pressure is obvious.

Flush iFinD data show that 16 of the 21 department stores listed on the previous account receivable fell, such as Wangfujing accounts receivable fell by 20.61%.

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to cope with the impact of "a href=" http://www.91se91.com/news/index_c.asp "electricity supplier < /a >, modern department stores launched the online shopping mall" modern network "on Christmas Day 2013, mainly engaged in brand discount products, and opened offline experience shop in outlets of Beijing road in modern department store.

The supplement of "main business under the line" is the location of modern hundred pairs of online stores.

This is similar to the establishment of a hundred thousand shops and friendship.

it is reported that the modern department stores will move towards the direction of "entity store + electricity supplier + mobile technology". At present, modern department stores are engaging in mobile Internet technology and developing mobile payment.

in fact, not only modern department stores, but also the local department stores that have been looking at e-commerce for years, have made changes or tried new models or format pformation.

but experts say that from O2O to all channels, on the road of Internet commerce, the industry needs to change traditional links, turn into new modes and cultivate users' habits. This road is not easy to walk.

At present, there is no complete and successful mode of continuous absorption of powder to achieve online and offline resource integration.

There is still some difficulty for customers to click on the Internet to plate into actual volume.

in addition, there are also insiders pointed out that online marketing and traditional shops in the marketing mode is very different, it is very difficult to complement each other, resulting in two sets of online and offline mode, but will increase the cost, so far there is still a lack of a good profit model.

In traditional business, O2O still tends to be conceptual. No one dares to invest too much in it.

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according to the reporter, in Guangzhou, modern department stores should directly face many competitors.

At present, there are seven major department stores in Guangzhou's large department stores, and large foreign companies such as Wangfujing. By the end of 2012, there were as many as 39 department stores in Guangzhou.

Less than P, the modern department store opened its head office. At the beginning, there were no supermarkets, no household electrical appliances, and did not follow the routine of Guangzhou traditional department stores.

But in the face of competition, the modern department stores, which "abandoned" the two major formats of supermarkets and home appliances, have begun to pform their business strategies and keep warm with other traditional retailers in order to seek breakthroughs.

In January 8, 2014, the modern department store and the Guangzhou Gome held a "strategic cooperation conference on the creation of a new retail format Gome & modern department store", announcing that the Sales Department of the Sales Department of the store was professionally operated by Guangzhou Gome.

the first phase of cooperation between the two sides was launched in Guangzhou modern department store Beijing Road store, Huadu shop, Whampoa store and Xicheng store. Modern department stores divided their home appliance area into their own stores, introduced household appliances category, and sold all the household appliances such as purchase, sale, distribution and after-sale business to Guangzhou Gome.

it is revealed that Gome and modern stores will also open up membership system in the future.

Members of Gome and modern department stores will have dual membership and cover all kinds of membership preferences.

analysts pointed out that this mode of joint operation has solved the problem of the difficulty of the department store's rental and the location of the home appliance chain, and at the same time, the cooperation between them can realize the sharing of passenger flow, member resources and even propaganda resources, so as to reduce their operating pressure.

Zhou Qiang said that in the past, department stores operated household appliances, and they needed large cash flow. Therefore, subtracting early in the shop could reduce the risk of new stores.

And now, the introduction of modern home appliance formats, addition, nor self - operation, but with the Gome joint venture.

This fills the gap of household appliances management, enriches the portfolio of department stores, and further improves the experience of consumers in modern department stores.

The modern department store also develops from the exclusive fashion department store to the "joint operation + lease + self run" development, and revitalize the shop resources.

Luo Jianji, deputy general manager of modern department store, also admitted that in the past two years, some suppliers will quit because of the pressure of operation, and there will be some rental pressures in some fields. P

So now also want to broaden ideas to revitalize some shops resources.

in addition, it is revealed that in the future, modern stores will also consider introducing specialized companies such as supermarkets.

In the gang top store, Huarun Wanjia convenience supermarket has been stationed in a few days ago.