How Was The V2 Store Of Le Cheng Supermarket Built Up In The Month Of Opening?

A more than 4000 square meter and an annual rent of about 4000000 yuan.

It was a pleasant surprise for the industry to achieve profits in the month of opening up.

2 years ago, the company that was founded just now took the price of nearly 16 million yuan / year and took the Shuguang commercial building in Hefei to pform it into the flagship store, Le Cheng Life Plaza, and created a supermarket called "China's first future supermarket" and "China's most beautiful supermarket".

This reporter has learned that the real business area of the supermarket, V2 store, which opened just now in August 1st, is 2100 square meters. The area only sold 7 million 812 thousand yuan in that month, plus the sales performance of the independent small format and the income of the rental part. The gross profit was 931 thousand yuan in that month. After deducting all the costs, depreciation and various taxes and fees, the net profit was still 26 thousand yuan.

The miracle of Qianshan Road shop

In the retail sector, the average market incubation period is 2~3.

In the harsh environment of traditional retail, many enterprises are already deterred from opening new stores under high rental and cost. It is very rare to realize profitable shops in the normal breeding cycle. The stores that can be profitable in the month of opening up are even rare.

Apart from more than 600 square meters of free children's playground, the 4000 square meter usable area of Le Cheng Qianshan Road store has a total area of 1800 square meters, 100 square meters of tobacco and wine area, 200 square meters of warehouse, 100 square meters of paradise, Mr. Le's stationery and music snacks, and so on. The reporter learned that in August, there were more than 5500 daily pactions in the supermarket of Le Hill Qianshan Road store, and the unit price was 45~46 yuan.

The average daily sales in August reached 252 thousand yuan (see table of operation of Qianshan Road store in Le Cheng supermarket).

Le Cheng also opened a lease area of about 600 square meters near the entrance and exit. Due to the 350 square meters of Kentucky's signed contract, the actual monthly rental income is 160 thousand yuan.

After KFC's opening, it will bring a lot of rental income.

Lok Cheng

Wang Wei, general manager, told reporters that since August was the opening month of new stores, the sales force was very large, and the gross profit of supermarkets was only about 9%. However, because of the rent free period, the profit and loss balance had been maintained.

In the late stage, sales will be stable and sales will gradually return to normal level as sales decrease.

Moreover, at present, the use of 160 employees in Qianshan Road store, with the enhancement of staff proficiency, the number of employment will drop month by month, and the normal staffing will be 130 in the future, and the cost of manpower will also be further reduced.

The reporter obtained Le Cheng's sales estimate for Qianshan Road store in the next few months. The sales trend chart shows that the average daily trading volume in the next few months will be maintained at 5000, and the unit price will be around 45 yuan.

In September, Le City took into account the end of the promotion period. Compared with August, the company voluntarily reduced its performance by 30%, and expected to sell 6 million 600 thousand yuan, but the gross margin would be raised to 14%.

10~12 month sales are expected to be 7 million 130 thousand yuan, 6 million 900 thousand yuan, 7 million 750 thousand yuan, which fully considered the influence factors of national day, Christmas, new year's day and other festivals on sales.

In the next few months, the gross profit of the store will gradually increase to the average level of other stores in Le City, that is, 17%~20%.

"Qianshan Road store will achieve full profit this year."

Wang Wei said.

High technology is not against profit.

In addition to making profits in 30 days, Le Cheng Qianshan Road store is still unique and subversive.

The store, which is an impressions of the store, is the second generation store that has been launched by Le Cheng after the future supermarket. The bright spot is that it has joined the popular games and animated cartoons, Moore Park, and has obtained the copyright of its animation works for store decoration, making it the world's first supermarket with animation theme: from the walls, columns, cash registers, commodity information signs, and even the promotional videos and shopping posters sold to consumers in the DM posters, Moore Park has been widely used in the cartoon characters, breaking the inherent supermarket image, refreshing people, and rapidly improving the consumer's recognition and recognition.

Similarly, "hi tech" has also been "copied" to the Lok Shan Qianshan Road store. 50% of the equipment imported from this shop is imported from abroad. For example, the arc-shaped shelf used for the first time in domestic supermarkets can reduce the corner of stores, reduce the number of display areas, and make the stores more beautiful. Besides, the most advanced e-paper labels in Germany, imported cars in Germany, shopping in Italy, and even LED technology are imported into Belgium.

Although in the industry, the practice of Le Cheng has raised a lot of "happy city wind", there are still a few unidentified people who think that the city's investment in surface work is not worth it, and even questioned how long it can support in the future.

As a matter of fact, after the life of Yue Chao life square, it has been widely accepted and caused a lot of controversy.

In addition to the high cost of 16 million yuan, the city also introduced more than 20 of the world's most advanced retail facilities and technologies, such as electronic tags, 3 million yuan one imported German customers and shopping cart detachable elevators, self-service packers, self-service cash registers, cans recycling machines, ultra five star hotels and so on. The investment is 3~5 times of an ordinary business area with an average business area.

At that time, some people thought that to open a supermarket like Lok Cheng was just like "killing your life". When can such a high investment be taken back, and when will the store be profitable?

Indeed, the incubation period of Le Cheng Life Plaza is a little longer than that of Qianshan Road store. Le Cheng has also made ten pformations according to its operating conditions, and it has not been realized until more than a year later, but now the rent is basically rented by the external rental area.

"At present, the rent of Le Cheng Life Plaza is 16 million yuan per year, and the rent can be recovered by 15 million 500 thousand yuan.

Supermarkets sell 320 thousand yuan daily and gross margin 20%. "

Wang Wei told the China chain reporter.

With a little accounting, you can see that the profitability of this expensive rental store has been very impressive.

Unimaginable cost performance

The use of a large number of high-tech and equipment as well as the seemingly excessive investment makes the outside world doubt the profitability of locheng supermarket.

But the fact is, a store that seems to have invested more than 30 million yuan at the same time, Le Cheng can take nearly 1/3 investment, the effect may be better.

Many people feel that this is simply impossible. Lok Cheng seems to be able to play well.

For example, most shelf manufacturers will emphasize that their products can be weighed 200 kilograms or even higher to prove their quality. But they forget that the most fundamental thing is that the shelf can only meet the safety quality of placing goods, because after 3~5 years, the shelves will be replaced or upgraded because of the paint falling or other wear.

As early as the general manager of Hong Fu supermarket, Wang Wei led the team to reduce the thickness of the shelf directly by half after the study, so that the cost would be reduced by half.

And all shelves are designed independently, and have been maintained so far.

"Who is going to dance on the shelf?" he said. Le Cheng has grasped the way to reduce the cost to the lowest level in the decoration and equipment purchase of the store.

On decorating props, Le Cheng purchased wholesale directly from Yiwu and other places, and combined with the needs of stores to slightly pform the details, several times cheaper than other channels.

In engineering decoration, Le Cheng has the unique experience of "saving money" without affecting the quality of the project.

More importantly, all the stores in Le City are designed by their own team. The team has successfully completed the innovation of the endless line, hall structure, theme display and so on, which can save more than one million cost.

A lot of people think that Wang Wei's thinking is so big that he is willing to invest in cost and not consider future business. This is actually a very big misunderstanding.

In addition to putting in the best cost-effective, some advanced equipment, technology and necessary investment in a good shopping environment effectively enhance customer experience, increase customer adhesion, and directly enhance loyalty. This is precisely the return to the essence of retail: to satisfy consumers and catch consumers.

Moreover, outsiders generally believe that at least 20 million yuan in the city of Qianshan Hill shop, the total investment in fact not more than 8 million yuan.

"Qianshan Road shop contract construction area of 4300 square meters, the actual usable area of about 4000 square meters.

Each square meter is put into renovation and equipment is 2000 yuan.

Wang Wei told the China chain store: "because about 1000 square meters are invested by leasing businesses, the store actually invested 2700 yuan per square meter."

What is the concept of 2700 yuan / m2 of decoration and equipment input? No matter the quality supermarket, the investment of the hypermarket is more than this number. The most ordinary stores will not be less than 1500 yuan / square meter. The cost of domestic boutique supermarkets in this area is generally 3500~6500 yuan / square meter, such as Beijing Hualian Xinguang BHG and Huarun OLE investment will be higher.

In terms of business, Le Cheng has its own set. In terms of commodity procurement, Le Cheng has basically achieved direct selection, and has adopted nearly strict standards for the selected products. For example, a total of more than 2000 snacks selected from ten thousand kinds of commodities are taken as an example. A purchasing team tries to eat every day to ensure the taste and quality of snacks, and even the weight of each team member has increased by more than 10 jin.

At present, 50% of the products in Le Cheng supermarket are completely different from their counterparts. The fresh food can be even more than the Yonghui supermarket in the Hefei market.

After the opening of Le Cheng Qianshan Road store, it has posed a great threat to Yonghui supermarket and Hejia Fu supermarket, which is less than 300 meters away.

Le Cheng has also created a small format mode in the store, which is about to become an independent category in traditional stores. At present, it has developed independent formats such as vegetable market (Sheng Xian), catering, stationery stores, gardening, snacks and so on.

In Qianshan Road shop, amusement park, Mr. Le stationery store, Lok Tai Chi snacks and so on were independently opened outside the supermarket line, and became a real store store.

This makes Le Cheng dare to challenge the high rent and golden hair.

The maximum extent of rent for a supermarket is generally 45~60 yuan / square meter / month, while the Lok Cheng Life Plaza is 111 yuan / square meter / month, even if the relatively low rent Qianshan Road store is also 80.5 yuan / square meter / month, it is still very high in the industry, which shows that its profitability is stronger than that of the same enterprise.

Qianshan Road store expects net profit to exceed 1 million by the end of the year, and its flat effect will be no less than 36 thousand yuan / year.

The store can sell more than 300 thousand yuan per day next year and sell over 100 million a year.

For Le Cheng, they are also surprised by the achievements of this innovation.

Compared with some peers, Le City does not shy away from publishing core business data, though it is the business secret of an enterprise.

It is worth mentioning that since the first day of its birth, the company has insisted on open enterprise style, standardized stock structure and financial pparency. "We hope that Le City's real performance data will dispel the industry's worries and worries about innovation."

Wang Wei said.