BBK Group Intends To Invest 10 Billion To Build Logistics Center

In May, BBK, a listed company, suddenly announced the acquisition of Guangxi Nancheng department store. BBK investment group Limited by Share Ltd (hereinafter referred to as BBK group) once again showed its ambition of expansion. Yesterday, Liu Xiaojun, assistant general manager of BBK group and general manager of southwest region, confirmed in an interview with reporters that BBK group will invest at least 1 billion yuan this year to build 500 acres of logistics center in Sichuan.

It is worth noting that, as the only listed company in the group, BBK launched the strategy of "great southwest" consistent with the group since the end of last year. It has entered Sichuan and Chongqing, Guangxi and other regions through self construction and merger and acquisition, but its profitability in the early stage is relatively low.

"At present, the company is facing the current situation of high investment cost and low profit, but in the long run, it will change the space with time, and will help BBK open the whole country." Liu Xiaojun told the daily economic news reporter.

"BBK has always insisted on" rural encircling the city ", the layout of the big city, is also to enhance the brand effect. Ye Nanlan, deputy director of Chengdu Business Services Department, said, "but in this way, we also need to face challenges such as high land costs or high rental costs, which is also a painful period of corporate transformation."

　　 Remote expansion targets Southwest

As the first share of private supermarkets, BBK has stepped out of the Hunan stronghold in recent years and began to frequent the southwest.

In May 11th this year, BBK announced a notice of 1 and a half months after the suspension. It plans to buy 100% stake in Nancheng department store in Guangxi with a total purchase of nearly 1 billion 600 million yuan. Nancheng department store is the largest chain retailer in Guangxi Province, and the only Guangxi retail enterprise that has been selected for the list of the top 100 list companies all over the world. The outside world commented that "BBK's move represents a solid step in its recent southwest strategy."

Before that, BBK has gradually extended its tentacles to Sichuan and Chongqing. Liu Xiaojun said that BBK has opened at least 5 stores in Sichuan this year, and there will be 3 new stores in the year. According to the Chongqing Commercial Daily and other media in June, BBK group will enter the Chongqing North Business District of Hechuan District, and the total investment is estimated to exceed 1 billion yuan.

Yesterday, Liu Xiaojun confirmed in an interview with reporters that in the next 5~8 years, BBK will also invest in 100 stores and 10 large-scale shopping complexes in Sichuan and Chongqing. The total investment will reach ten billion yuan.

It is worth noting that the macroeconomic downturn, the weak consumption in the retail industry, and fierce competition in the channels have made the western region extremely competitive. "At present, the Western business super structure is like the spring and Autumn period and the Warring States period".

Not long ago, a similar positioning Yonghui supermarket announced its goal in the development of Sichuan: in the next 5 years, the store will expand to 50~100 stores. At the same time, the large number of foreign investors who frequently switch stores and retreat will also intensify competition. Last year, WAL-MART and Carrefour reopened 3 stores in Sichuan and 1 in Auchan.

In July 15th, BBK released the 2014 semi annual performance notice amendment notice, which will reduce the net profit growth of shareholders belonging to listed companies from 15% to 25% to 10% to 15%. One of the reasons for downgrading is that since the implementation of the "great southwest" strategy since the end of last year, due to the small number of stores and the short opening time, the market share is not high, and the profitability of the former is relatively low.

"At present, there is a large demand for investment in commercial projects in Southwest China, which is an opportunity for BBK." Ye Nanlan, deputy director of Chengdu Business Services Department, told reporters, "but in the process, we will face the pressure of short-term cost and low profit, and it is also a painful period for enterprise transformation."

Liu Xiaojun also agrees with this statement. In his view, this is BBK The stage of expansion and opening up to the national situation is "going to make profits at the beginning, and investing a lot in the early days is to make room for time."

　　 build by oneself logistics Or cost more than 1 billion

In fact, BBK itself is very clear that cross regional operations face certain risks.

"Because the consumption habits and preferences of consumers in different regions are different, it is necessary for consumers in different regions to understand the company's brand and the company's in-depth understanding of the market situation in the region, which results in different sales of different commodities in different cities." BBK 2013 annual report pointed out.

Or because of this, BBK group decided to Southwest China Self built logistics, replication of its unified procurement and distribution mode, in order to get the advantage of terminal prices. Liu Xiaojun said yesterday that BBK group will spend more than 1 billion yuan to build a logistics center of 500 mu in Sichuan.

Liu Xiaojun confirmed to reporters that "the logistics center is for its own use, landing the supply chain of BBK (Group) in commodity warehousing and procurement in the southwest, and connecting the southwest, central and southern channels to achieve the docking of goods and stores with the stores." on the other hand, it also integrates the urban logistics network, which not only provides warehousing and leasing services and whole cold chain technology for businesses in the region, but also creates a "central kitchen" to provide heating and processing services for food.

Public information shows that BBK group built a fresh logistics center in a logistics park in Xiangtan in 2011. The contents include the above "central kitchen", refrigerated storage and so on. The annual throughput exceeds one hundred thousand tons, which radiate 14 cities and neighboring cities in Hunan, and the annual delivery volume can reach 2 billion yuan.

"Self made logistics can be described as an established advantage of BBK, which is similar to that in Hunan in Southwest China, so the company hopes to replicate its mature experience." Zhao Ping, deputy director of the Consumer Economics Research Department of the Ministry of Commerce, told reporters. Ye Nanlan believes that, compared to leasing third party logistics, self built logistics can more effectively reduce procurement and warehousing links, save business costs and make more profits for consumers.

In addition, Liu Xiaojun pointed out that the logistics center is "very expensive". According to the progress of the site selection, the investment is at least 1 billion yuan or more. "This is certainly a long-term process of returning to the capital, and it is also a challenge to capital." Liu Xiaojun said frankly, "follow-up operations also put forward higher requirements for professional ability."