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    Three Or Four Line City Department Stores Evacuate The Tide.

    2014/5/21 14:27:00 37

    Three Or Four Tier CitiesDepartment StoresStores

    Department stores are entering the winter. In the next half month, two department stores will be closed, and about 20 of Parkson Department store will close the new North store in Changzhou, Jiangsu. Guangzhou Xinguang department store (expanded location information) confirms that it will close the Nanhai store in Foshan's Xinguang department store on the 31. After the Guangzhou's largest private department store modern department store (expand location information) agreed to close Zengcheng Xintang store.


       Early blind expansion, bubble finally


       Three or four line city Why did the department store shut down? Although the head of modern department store refused to disclose more information, the company's latest annual report shows that the performance pressure is not small. Data show that in 2013, the modern department store lost nearly 30 million yuan. What is the performance of shinguang department store? Hu Liping, deputy general manager, said that more than 1 years of market accumulation and turnover were close to 100 million. However, there was an analysis by industry analysts that the profit of one hundred million yuan was assessed on 365 days and the turnover was only 300 thousand.


    What exactly hit the three or four line city? Department store Liu Hui, chief consultant of Zhao Yi Department Store Department, analyzed: in 2009, the three or four tier cities surged up the department store investment tide, from 200 in 2005 to more than 1300, but the speed of urbanization couldn't keep up with the speed of urban construction.


    In the early days, too optimistic, 09 years of high bubble, all of the hit, this level, returned to 09 years.


    The business surplus caused by blind expansion has led to the current sales crisis. The direct result of the decrease in profits is the withdrawal of agents from the department stores.


    When the department stores frequently return to the stores, they will swallow up the space of the agents. Then, when a discount is made, the agents do not make money, and now the salaries of the staff are very fast. The demand for salesmen in the clothing retailing industry is very high. The wages of the skilled and skilled operators are rising linearly, even higher than that of the high technology IT engineers.


       High interest loans attract agents.


       Liu Hui He has found that many agents prefer to spend money on financing or lending, rather than department stores.


    The protection of private lending is good. It is very happy to take part in this kind of thing. The local agricultural bank and the city commercial bank will have some investment return rates. They should be 9% to 11% investment products. Most of these agents are: personal assets are in tens of millions, at least 5 million or 6 million, and they are willing to invest in cash.


    The agency has given up investment, and there has been a lot of blood pumping in the middle section of the department store. As the plight of Nanhai store in Xinguang department store has to close down and shut down, the department store industry in the three or four tier cities is suffering great impact. How long can it last? How will the Department Store develop in the future? Liu Hui's analysis is that the volume of goods will decrease and the department store will be gradually integrated. Leading enterprises.


    There will be good development, but not quantity related. He is related to quality. So many department stores in China do not have a leading group. There should be a big shuffle and integration. Several large department stores will eventually have 20 major department stores. Single department stores, or department stores with only two sporadic stores, will either be knocked down or swallowed up.

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