International Retail Giant WAL-MART Is Overweight Chinese Commercial Real Estate Investment

In the view of Huang Wenjie, chairman of Chu Rui business, WAL-MART is developing and holding property strategy in China, aiming at reducing risks and seeking new growth points.

"Over the years, the market value of the shopping mall industry is generally rising. If the property is owned by itself, it is not only the daily retail business, but also the property appreciation itself will bring profits to them.

If the property is added through its own business, it is equivalent to their business getting double income, and it also reduces the risk that the landlord raises or does not rent to them, which avoids risks and brings double benefits -- operating income and value-added income.

However, Huang Wenjie also pointed out to the times weekly reporter that the strategic direction of holding the property is, "what I know is also a subsidiary of Carrefour and Carrefour. In fact, they have such a trend in recent years that they are interested in holding property."

In fact, as early as 2012, the survey of China Chain Store Association showed that more than half of the domestic retail businesses were involved in commercial real estate, and the practice of subsidizing the retail industry has become a common practice.

In 2012, Yurun Group, which has many sectors of food, department stores and hotels, announced the completion of the 50 commercial complexes in 2015. In 2013, Hongxing commerce, the Hongxing Midea Group, which entered commercial real estate, said it would complete the construction of 100 shopping centers in Aegean Sea in 2020. The IKEA Shopping Center Group invested 10 billion yuan to develop shopping centers in Beijing, Wuxi and Wuhan.

At the same time, Huang Wenjie also predicted that although the construction of large-scale retail facilities in China is saturated in certain areas and parts, especially in some core traditional business circles, WAL-MART's "community shopping center" will enter a rapid development period in the next few years.

"In the past 20 years, shopping centers are mainly concentrated in the core area of the city, more of an urban shopping center, which is also a focus of past development.

But over the past 10 years, real estate has developed, and the pattern of every city has changed, and the trend of flat development has appeared.

It means that there are more fine areas, and more commercial markets are empty.

In fact, a city can not carry a lot of city shopping centers, but the community shopping centers only aim at the passenger flow in some areas. 100 thousand or 200 thousand of the customers can support the community type living space.

The general saying is that the population of 5. 6 million can support an urban type.

But the community shopping center may be able to feed 50 thousand people.

Huang Wenjie analysis.

However, this format is not exclusive innovation by WAL-MART.

In fact, many domestic developers such as Vanke, Shi Mao, flower calendar, etc.

Business, Baolong real estate and so on have all been in the direction of "community oriented business".

As a retailer lacking in development and operation, WAL-MART has yet to verify whether the commercial real estate in China can really bring about its growth.

"WAL-MART's property holdings in China can't change the essence. The essence of business is not whether you hold a shopping center or not, but whether it is popular or quick turnover. Is the price appropriate?

So holding a property may be helpful to its short-term cost, but it will not change the actual situation. "

The retail industry analysts expressed their cautious views.