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    Fat East Unexpectedly Announced A Big Shutdown

    2014/9/24 13:25:00 21

    Fat EastShut ShopDepartment Store

    However, a micro-blog released by Chairman Yu Donglai of fat east has made the industry startled.

    According to its description, all stores except Xuchang's Times Square shop will be turned off or pferred in 3 years.

    What is the reason behind such sudden decision?

    Yesterday (September 17th), fat east to the relevant staff told reporters that the top executives are still discussing the matter, all the details of the follow-up will be based on its official website announcement.

    The chairman suddenly declared the shop closed.

    In September 15th,

    Yu Dong Lai

    Through its official certification, micro-blog announced the news of "fat Dong Lai Guan". "I will do my best to do the Times Square! The remaining stores will be closed or pferred for about three years! Excellent staff will stay in the times and the rest of the staff will be well arranged!"

    At the same time, he also said that in addition to Times Square, other shops if anyone is willing to take over, please contact fat east to the Times Square office.

    For employees willing to quit, the compensation is 5000 yuan per year.

    Such a decision has obviously put pressure on Dong Lai.

    In micro-blog, he gave his annotations and statements to employees, systems, corporate culture, beliefs and other words repeatedly.

    "You will never understand it! Let's continue to close the shop."

    At the end of last month, the commercial complex project, which was invested by 800 million yuan in the eastern part of Henan, was located in Tangyin county.

    A source close to the fat east employee told the daily economic news that in fact, employees did not know the news about the bulk of the store's business.

    The reporter learned from his client staff that at present, there are 7 stores in the urban area of Xuchang. They are times square, life square, mass clothing sales volume, electrical appliance city, people's shop, Wang Yue shop and labor shop.

    Besides, there is also a Yuzhou electrical appliance store outside the city.

    Despite being in the four tier city, leaving the rest of the store is still a challenging matter.

    Yesterday, the "daily economic news" reporter interviewed fat east to the relevant person in charge, the other side said that the current high level is discussing this matter, the details are not known, it stressed that all the fat east to the official website announcement.

    However, as of yesterday's press release yesterday, fat Dong Lai official website had no specific explanation for closing shop.

    The new assessment system has not been recognized.

    Fat east is known as the "bathing" of the department store.

    According to official information, fat east started from more than 40 square meters of fat house in the moon tower in 1995. In more than ten years, it has become a more famous commercial retail business in Henan. It has more than 30 chain stores and more than 7000.

    staff

    Its three major commercial formats include professional department stores, electrical appliances and chain supermarkets.

    The local department store, which is a slogan for service and happy enterprise, has only many stores in Xuchang and Xinxiang, but in the past it has launched many initiatives which are new in the industry.

    In 2012, fat Dong came to the 13 chain stores in Xuchang, including 51 stores, 61 stores and new Xu stores.

    In April 30, 2013, it was announced again in Donglai that in 2015, fat east would close all the stores in Xinxiang and withdraw from the Xinxiang market.

    This time, it was a surprise to the industry to announce the closing of the shop again in the East: only time square shop was left.

    It is understood that the Times Square shop, always have high expectations in the East.

    In the internal work conference, it is often said that the times square, whether culture or business mode, should be built into a world-class shop.

    According to the former close to fat east employees, he chose to close shop on the one hand because he felt that his pay was not directly proportional to his reward and was chilled by his personal attacks. On the other hand, he was related to Yu Donglai's illness.

    Reporters learned that before closing the shop, a decision was made in Dong Lai to strengthen the star rating of stores, which was opposed by some employees.

    According to micro-blog mentioned in Dong Lai, for its employees, less than one star standard for more than a year, less than two years to reach two level standards, three years or less can not be achieved by Samsung standard.

    "He wants to make a perfect product with a utopian nature.

    Therefore, some systems are relatively strict.

    An insider told reporters.

    However, this has not been recognized by all the staff.

    "For those who do not know how to be satisfied, if they feel dissatisfied, let him lose it! Losing is also a feeling!" said Yu Dong Lai in micro-blog.

      

    Fat Dong Lai

    Find new way out

    The reporter understands that the salary of fat east is much higher than that of the same industry.

    It is also mentioned in the micro-blog from the East. "It is the most bad job employee's salary, welfare and so on. The total income is four thousand or five thousand."

    Insiders pointed out that if the remuneration level eventually becomes human cost pressure, it is likely to lead to the failure of enterprise operation.

    Huang Wenjie, executive director of Guangdong provincial Circulation Industry Association, said that in the direction of increasing the welfare of employees, there is no fault, but enterprises always operate in the whole market environment, and they need to maintain profitability.

    "The cost is far higher than the peers, and the competition is not on the starting line.

    In a market that is not very prosperous, it is equal to double pressure.

    "Some small and medium-sized retailers in China are looking for a way out in a competitive environment. Fat east is one of them."

    Ding Liguo, a senior retail expert, told the daily economic news reporter that for small retailers, it is commendable to have some early characteristics to find competitive advantages.

    But the problem is that there is a big gap between small retailers and medium and large retailers in store management.

    "It is a great question mark whether the management experience can be duplicated when the number of stores is small."

      

    Richard Ding

    Told reporters that any supermarket development, there are a number of core entrepreneurial team, and they can very well recognize the founder's values.

    But after the expansion of the scale, professional managers slowly enter, and whether the original operation is suitable is a problem.

    "The way of management is universally applicable. For the fat east, the present situation may not be internal, but the objective rule is so."

    According to one industry insider.

    "Enterprises are looking for new models, and once they find the right ones, they can quickly replicate."

    Huang Wenjie pointed out that at present, we can use "dormancy" to describe fat east. It is also adapting to the new market environment and adjusting its own system at the same time.

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