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    Traditional Department Stores Are Leaving The Second Tier Cities.

    2014/9/29 16:31:00 19

    Traditional Department StoresA Second Tier CityClose Shop

    In the late autumn, Guangzhou is still immersed in the scorching hot air of summer, without cold wave, but the typhoon will still carry a strong wind and torrential rain.

    At three o'clock in the afternoon, Wu Min, a cleaning member (a pseudonym), started his evening shift at the department store in the old Department of agriculture and forestry in Guangzhou, Wangfujing.

    Wu Min worked in this department store for more than ten years, and over the years he has developed a fixed working rhythm and habit.

    She could feel that her work was becoming more and more relaxed than usual, because visitors to the mall were probably three or four less than in previous years.

    However, Wu Min is not worried that he will lose the job of cleaning up one day. Although she also heard that Wangfujing department store has just closed down the stores in Zhanjiang, the only store in Southern China is the farm and forestry road.

    In July of this year, the Zhanjiang department store of the Wangfujing was closed, and opened from the end of 2012 to close down. The Zhanjiang store only survived for more than a year.

    The reason given by Wangfujing company is "considering the market environment, the need of strategic pformation and the trend of store development".

    In fact, in the impression of Zhanjiang locals, the opening and closing up of this department store has caused great waves. In the concept of local people, as a three tier city, Zhanjiang's consumption ability and habits are far from the market positioning of Wangfujing department store's "tall and tall" market.

    According to the financial report data, in 2013, Zhanjiang Wangfujing store lost 30 million 160 thousand yuan.

    The Wangfujing department store, which has a long history, is known as "the first shop in China". The Wangfujing department store of Guangzhou agriculture and forestry road opened in July 5, 1996. It also has the epoch-making significance as the first store to carry out department store chain operation in Wangfujing department store.

    But now, this store is the only traditional department store in Wangfujing in Southern China.

    It is not just the Wangfujing family that chooses to shut down as an adjustment strategy.

    According to the data of Lian Shang network, the main department stores in China have closed 12 stores since the first half of 2014.

    Since 2013, the number of department stores has reached 38.

    except

    Wangfujing

    In addition, a typical example is that the Japanese retail giant Ito Yang Hua Tang invested in the Beijing Hua Tang shopping mall closed the Wangjing store and Beiyuan store. The other one hundred goods giant Baisheng department store, Beijing East Fourth Ring store, was officially closed in July.

    In June, central Hangzhou

    Department store

    Also "overnight empty city", then came the news of the boss's running, in August, spring department store Qingdao store and Chongqing Rui Fu's outlets also began to shut down.

    stay

    Closing shop tide

    Behind this is the poor performance of major department stores listed companies.

    After this year's A shares listed department stores issued interim reports, their performance is rather weak.

    According to Shen Wan classification statistics, the results of the first half of the 20 A listed companies in the first half of 2014 showed that the total revenue of the companies in the first half of 2014 was about 43 billion 114 million, and the revenue fell by an average of 7.09%. The total net profit amounted to 2 billion 292 million yuan.

    It is noteworthy that statistics show that the revenue of these 20 enterprises increased year by year, only 3 of Xi'an people's livelihood, Nanjing new hundred and chengshang group, and 17 Enterprises' revenue fell year by year. Among them, Guangzhou friendship, Guang Bai share, new world, and Wangfujing's large scale nationwide distribution Department's department stores had a sharp decline in their first half revenue and net profit, and net cash flow dropped by more than 14%-120%.

    In terms of net profit, the 10 companies declined over the same period, and the Changbai group fell 86%.

    In terms of the above 20 prepaid accounts, they all showed an increasing trend, and the total amount of prepaid accounts amounted to 2 billion 524 million, representing an increase of 36% over the same period.

    Guangzhou friendship reached 86.85%, and ZTE commercial prepaid accounts increased by 229.33% over the same period last year.

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    Read the next article

    On The Traditional Department Stores Eliminated

    The external factors that led to the closure of some department stores in China are outside the impact of electricity suppliers, rents and central anti-corruption. From the internal reasons, many department stores blindly expand and vicious competition is also a catalyst for the final collapse.

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