WAL-MART Builds Its Own Commercial Property "Blood Enriching": The Rent Surge Is Enormous.

In an official information sent to the weekly newspaper reporter by Jo Newbould, an international affairs spokesman at WAL-MART headquarters in the United States, the Zhuhai world of music is the first shopping center for WAL-MART to develop, build and operate in China. WAL-MART's store will become the main store of the shopping center.

WAL-MART also said: "the Zhuhai music world is located in the very prosperous area of Zhuhai, with good road traffic facilities. This location is ideal for the construction of Sam's member stores to serve the business community and the vast number of members. It can also drive the development of the surrounding business circles and supporting services industry."

However, on the grounds that "the real estate team is unwilling to disclose more information", WAL-MART declined the further understanding of the above shopping center projects and the layout of commercial real estate.

According to the news released by WAL-MART (China) Investment Co., Ltd. in August, WAL-MART China has just announced a new real estate team, and the head of the new real estate team is Peter Sharp, head of WAL-MART real estate business in Asia.

WAL-MART's responsibility for Xia Bi De is described as: "will lead the Sam member store China real estate team, help Sam format to make its more rapid growth plan.

He will continue to lead WAL-MART's Asian real estate business and develop a shopping center with Sam membership stores as its main store.

Layout of three or four line cities

WAL-MART regards Zhuhai Le world project as a "community shopping center".

According to the tender information released by WAL-MART in April this year, the actual address of Zhuhai Le world project is on the north side of Xiangzhou Qianshan Zhuguang highway, the west side of Jinfeng Road.

The building will be a 4 storey shopping center with a two storey basement including shopping malls, shopping malls, retail supermarkets, restaurants and underground parking lots.

A local citizen in Zhuhai described to the times weekly reporter: the location of the above shopping center of WAL-MART is actually close to the border between Zhuhai and Zhongshan, and a large number of houses have been built around it.

"Especially within the Zhongshan boundary, because of the obvious price advantage, housing intensive."

"The size of some shops in the shopping center will be larger than the local market demand. In fact, the size of the shopping center and the number of tenants are more likely to match the community to achieve higher performance, and then we can expand the scale according to the time situation," project director Xia Bi de said in an open speech.

At that time, Xia Bi De also said: "WAL-MART's main store shopping center construction, we will pay attention to the size of the planning."

In addition, Pan Lijun, vice president of WAL-MART real estate investment and asset management, told the media that WAL-MART launched its own investment and development shopping center project in China in 2012. It plans to develop 4 shopping center assets packages in the first phase of the 2-3 year development cycle.

Last year, WAL-MART has disclosed that the location of shopping centers in China is concentrated in three or four line cities.

According to the current reports, Xia Bi De, President of the Asian real estate company, has had contacts and talks with Guangdong, Meizhou, Jieyang, Shanwei, Sihui City and Chaoan County, and the latter expressed hope that WAL-MART will invest in the local market.

In September this year, the Nanfang Daily reported that Wal-Mart Store Inc plans to set up Sam shopping center in Huizhou, and said, "WAL-MART is planning to build a shopping center in the Pearl River Delta with multiple cities, which is positioned as a community shopping center. It is also an important step for WAL-MART to enter the commercial real estate in China".

In addition, the information of the Sichuan Deyang economic and Technological Development Zone Management Committee shows that the team of Xia Bi de has visited the site on the establishment of a comprehensive shopping mall in Deyang, and disclosed that "the project was established by WAL-MART in an independent legal entity in the locals, and it built a pure commercial complex with a single building alone. The main member of the Sam shop is the tenant, and the businesses of various formats cover all aspects of fashion dress, catering, entertainment, leisure and services, and the parking space will reach more than 1000".

WAL-MART's interpretation of commercial real estate in China's cloth industry is generally interpreted by the industry or affected by the downturn in the retail market.

In the earnings report released in February this year, the net sales of WAL-MART's international sector fell by 0.4% compared with the same period last year.

Mexico, the biggest contribution to WAL-MART's international business, is facing corruption charges. As a result of the sluggish domestic consumption, single store sales have declined for 7 consecutive months, while another populous country India has refused foreign direct investment. WAL-MART can only work together with India Battie group to build a wholesale warehouse mode of spot purchase and self shipment.

However, in October last year, the cooperation failed.

although

Business in China accounts for less than 5% of global sales, but according to data from WAL-MART, sales of WAL-MART in China increased by 24.5% in 2013.

"The Chinese market has the potential to become WAL-MART's second largest market in the world outside the United States."

But the reality of China's market may not be as good as WAL-MART's.

An open data said WAL-MART's market share in China fell to 5.7% in 2013, which has been overtaken by Huarun.

The actual action of WAL-MART also started a round of adjustment since 2013. In October last year, WAL-MART announced that by the end of 2015, the company would close about 25 poor performing stores in China.

A retail industry analyst at a securities company told times weekly that foreign retail businesses in China have been in a downturn in recent years or will enter a period of adjustment.

In fact, you can see that Tesco sold out before Carrefour, and there were also news legends about selling shares. WAL-MART also did not do well in China. In recent years, the industry situation is that food prices are going down, sales are not good, costs are rising, and too many companies are down year-on-year.

Therefore, this period is also an adjustment period for the whole industry, and local enterprises are also getting up, which has an impact on them. So their days are not as good as those in the past few years, they are quite different. They are all in the adjustment period.

The analysts said.

At the same time, the various preferential policies enjoyed by WAL-MART in 1990s due to the lettered signs of "international retail giants" have also been impacted by the rise of local enterprises and the downside of their own business conditions.

It is reported that in 2005, WAL-MART entered the Chongqing market and completed a more than 20 thousand square meter shopping mall in Jiulongpo District.

At that time, the landlord and WAL-MART offered 10 years' rent free, 40 year rent, and 0.5 yuan / square meter / day conditions, while the local government returned three years business tax.

But in 2011, the Chongqing municipal government issued a ticket for WAL-MART's "green pork gate", which was 2 million 690 thousand yuan and half a month's suspension. Many people in the industry regard it as a government's attitude towards foreign enterprises.

In the early years, WAL-MART had won the favor of various commercial real estate projects with its own consumer appeal and gained low rent and other concessions.

But now, that advantage is no longer in place.

For example, in 2001, Wanda Plaza signed a strategic cooperation agreement with WAL-MART, which endorsed the real estate investment activities of the former "rented and built" orders, while the latter provided concessions for the former.

But by 2009, Yonghui supermarket has become a new strategic partner of Wanda. The store of the future plan 1/5 will enter Wanda Plaza, and the long tenancy of the main tenants of WAL-MART and Wanda Plaza will soon expire. It will face the plight of the rents of the 15 rents.

"Historically, foreign companies can rent relatively cheap property earlier, or rent is relatively cheap, because foreign investment companies are more popular.

But in recent years, these conditions have gradually changed, and the ability of local enterprises to take land is not inferior to them, such as A shares Yonghui and Hong Kong shares, "the two are the commercial enterprises with comparative benchmarks in the industry, or everyone is willing to invite them to lease the property."

The analyst commented.