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    Guangzhou's Largest Private Department Store, Modern Department Store, West City, Is Facing A Closed Shop.

    2014/7/20 12:46:00 29

    GuangzhouModern Department StoreShut Down

    Reporters yesterday learned that the largest private department store in Guangzhou on the 15 th of this month announced the suspension of the westward City store business. The modern department store Bulletin shows that if the operation of the Xicheng store is not successful, the store may have the risk of stopping operation. The head of modern department store told reporters that the direction and content of the adjustment were not yet determined, and the results will be announced as soon as possible next week.


    The largest private department store in Guangzhou announced 15 days ago to suspend the operation of the store. This modern department store is located in the west city of 8 Huang Sha Road, Liwan District. It has been running worse than expected for more than a year, and it plans to carry out the whole business adjustment.


       Westlife All stores are in a state of loss.


    Yesterday, the head of modern department stores said that Xicheng stores had been suspended and replanning and reinviting businesses. There is no clear time for reopening.


    Modern department store is the largest private department store in Guangzhou. Previously, in order to speed up list , Modern department store In the first two years, the Beijing road Guangming square and the yellow sand Avenue West City were all stores. When the economy declined, the consumption power weakened and the electric business shocks, the department store's cultivation period continued to extend. Modern department stores had to face enormous operating pressure.


    According to the public transfer instructions of Guangzhou modern department store released in March 31st this year, the main reason for the continued decline in net profit and operating capital of modern department stores is attributed to the drag of two new stores in Beijing Road store and Xicheng all stores in Beijing. In 2012 and January 2013 to August, the total losses of the two new stores were 17 million 586 thousand and 400 yuan and 46 million 712 thousand and 300 yuan respectively. In May of this year, because the business situation was not as good as expected, the modern department store closed the Xintang shop stop loss, and the number of stores was reduced from 8 to 7.


       The possibility of shutting down is large.


    Will the modern West City store be adjusted or reopened or will it be closed?


    A brand reporter told reporters that the news received was that the modern West City store was closed, and that department stores would not normally make adjustments and shut down.


    In the industry, it is strange that if we really want to make adjustments, we should stop the adjustment after the plan is made. The moratorium on westbound stores is likely to be followed by closing stores. If losses continue to increase, closing stores is not necessarily a bad thing. " Insiders said.


    Huang Wenjie, executive director of the Guangdong Circulation Industry Association, said that Guangzhou's yellow sand business circle has formed a pattern of weakening retail and wholesale strength, and the time of opening stores in modern western cities coincides with the continuing downturn in retail business and the difficulty of operation.


    On the other hand, in order to cooperate with the location of Xicheng, the modern department store built the store into a modern upgraded version, positioning high-end, but in the current situation, such a positioning is not in line with the consumption power of the surrounding area. Huang Wenjie believes that the current passenger flow situation in Xicheng Dali store is not ideal, and the modern West City stores want to rush out of a distinctive road in many department stores in Guangzhou so as to achieve differentiated operation and comply with the surrounding location.


       First half of the year:


    Retail sales increased by four times.


    In retail business, closing stores is not new. In the first half of the year, the main retail enterprises (excluding home appliances and appliances) closed 158 stores in the country, far exceeding the number of 35 stores in 2013, according to the statistics of main retailers in the first half of 2014. The reporter observed that in just two and a half months, 13 department stores in China have been closed.


    According to the statistics of the China National Business Information Center, the retail sales of 50 key large retail enterprises in the first half of the year dropped by 0.8% compared with the same period last year, and the growth rate was 11.8 percentage points lower than that of the same period last year. Entering the year June, the retail sales volume of 50 key large scale retail enterprises decreased by 0.2% compared with the same period last year, the growth rate dropped 13.7 percentage points from the same period last year, and only 50 of the 50 retail enterprises achieved retail sales growth, a decrease of 15 over the same period last year. The whole retail industry is in the "cold winter".

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