Star Shopping Mall: Can Department Stores Earn Money Lying Down?

For ordinary consumers, most of the commodity prices here are not close to the people. For brands, the pressure of sales pressure has been depressed by many brands, and there is even a lack of brand impulse to eliminate the brand. Of course, let more people envy, jealousy, hate is department store enterprises as a joint two landlord's identity, seems to lie can earn money.

　　 Can the department store really earn money lying down?

Gold suction weapon Star Mall

Let's look at several sets of data first.

Yinwu, Yintai, INtime The first store in the department store is also the flagship store of the company. In 2013, the taxable sales volume (including value-added tax, the same below) was about 2 billion 800 million yuan. Based on the average commission rate of 17.2% in the year of the intime department, the commission income for Yintai was 420 million yuan.

Jinying department store store opens in 1996. Last year, its retail sales amounted to 4 billion 140 million yuan. The total commission rate of Golden Eagle department last year was 17.8%, and the corresponding commission income of the store was 640 million yuan.

Commission is only part of the revenue of a department store. According to the industry practice, department stores will also charge the brand owners with their free shop, promotion and other incidental expenses. In 2013, the other revenue of Yintai and Jinying two stores from suppliers were 320 million yuan and 210 million yuan respectively.

It is easy to see that Yintai Wulin store and Golden Eagle shop are simply gold sucking tools.

In addition, these two stores are property owned by department stores. In addition to the depreciation of equipment and the cost of electricity and personnel supporting the daily operation of shopping malls, department stores hardly need to bear other expenses. It can be imagined that most of the Commission collected here can turn into profits.

This view can be verified from data. The annual sales volume of single store exceeds 3 billion, and net profit in 2013 is 470 million yuan. The first annual sales volume is over 4 billion, with net profit of 430 million yuan last year. The Plaza is also over 3 billion. It also maintains the first place in cosmetics and women's clothing sales in China. Its net profit in 2013 was 290 million yuan.

We can find a lot of such cases. Basically, there are one or more star department stores in every second tier city. A store in a department store can earn hundreds of millions of net profit every year, and it seems that branding is working for department stores.

But this is not the real Chinese department store.

　　 Naked swimming behind the light

The department store industry is an early form in China's modern circulation industry.

As early as the 50s of last century, the state-run department stores of old brands began to appear. In the 90s of last century, most of these state-run stores were listed as early test makers of China's capital market. At the same time, private sector stores began to emerge.

Then, after nearly 20 years of survival of the fittest, China's department store industry has come to the present. Most department stores now have several star shops that can be made. The shopping malls mentioned above undoubtedly belong to this category, and they are also the leaders of the whole industry.

But we found that if these star stores were removed, Chinese department stores were actually swimming naked.

First, Department store Sales of star stores are particularly heavy. Take the example of the company, it has a long history. In 1996, when foreign department stores and private department stores were still in a stagger start, the development of chain has begun. Up to now, a total of 21 cities have entered, with 29 stores running under the banner.

However, last year's revenue was only 19 billion 200 million. This means that a store has contributed more than 15% of its revenue to the company. There are 8 stores with annual sales exceeding 1 billion yuan, of which 4 are over 1 billion 500 million. Sales accounted for more than 40% of the top four stores.

The rule of sales depending on Star stores is applicable to most department stores. Sales of Yinlin and Yintai account for 15% of Yintai department store, while the number of intime department stores is 37. The annual sales volume of Wulin Yintai single store is about the sum of the smallest 15 stores in Yintai.

The number of star single store sales of other large chain department stores in China accounts for about 20% of the total sales volume of the company. However, the first tier department stores or the second tier city department stores with fewer stores on the business circle, such as the Cui, Cui Wei building, the first business share (the combination of malls and Yansha), and the friendly group, are more dependent on the sales of the star mall, or even more than 50%.

As for the super commercial landmarks of the new world, China (currently being restructured in conjunction with the reorganization of the hundred and hundreds of hundred), and those of the company, they are able to rely on a store to support billions of market capitalization of listed companies.

In addition, a more serious dependence is on profit. Wulin Yintai can earn money every year, but those stores with less revenue are the bottomless pit of Yintai losses.

The net profit last year was 470 million yuan, while the net profit of all 29 stores was only 700 million yuan. The total loss of the 8 stores with a loss of more than 10 million yuan in the year amounted to 240 million yuan, of which the loss reached 57 million yuan.

Similarly, in these large chain stores, the super star shopping centers of the first eight hundred partners, the plaza and the Guang Bai Road store have contributed more than 50% of the total profit of the department stores.

In other words, a small number of star stores have been supporting the overall performance of department stores, and they are even supporting the development of China's general merchandise industry. The profiteering of department stores is all false.