Cui Wei Acquisition Of Two Shopping Malls To Expand Beijing Share

The traditional department store, which is facing the "retail revolution", has accelerated the pace of integration.

Beijing Cui Wei building Limited by Share Ltd issued a notice recently that the plan to buy assets and raise matching funds to the state-owned capital management and management center of Haidian District city of Beijing has been approved by the SFC. This also means that two traditional department stores, which belong to Haidian District's state-owned capital management and Management Center, will be purchased by Cui Wei.

Notice disclosure, Cui Wei will buy

And 100% stake in Gan Jia Kou building, the paction price is 2 billion 468 million 315 thousand and 600 yuan.

Although the Commission's approval has just been received, the purchase price of nearly 2 billion 500 million yuan has been evaluated as early as last year.

At that time, the subscription price of Cui Wei shares was as high as 13.68 yuan per share, and the purchase price was 76.74% above the base price, creating a premium record for many years in the A share market.

After the completion of the paction, Cui Wei will have 9 stores in Beijing City department store.

The sales market position will further increase, and the market share will rise from about 10% to about 15%.

Regarding the purpose of the acquisition, Cui Wei said that the location of the stores in the contemporary shopping mall and the Gan Jia Kou building is superior, and it will complement each other in the geographical location of the existing stores, so as to enhance the profitability of the listed companies and solve the potential competition problems.

However, the continuous downturn of traditional department stores has made many people worried about whether they can realize their wishes.

In the first half of this year, the number of retail sales of major retail enterprises in China dropped by 10.9% compared with the same period last year, while the retail sales of Beijing's department stores increased by 8.57% year-on-year.

At the same time, many stores like Hua Tang and other department stores have repeatedly heard the news of store closing.

The earnings of these two stores are not ideal.

Data show that the main business revenue of Shangcheng mall last year reached 1 billion 437 million yuan, a decrease of 10.4% compared to 2012, while the main business income of Gan Jia Kou building in 2012 was 658 million yuan, down 2.4% compared to 2011.

Even in the case of Cui Wei, the revenue of 6 stores last year has dropped from 4 billion 950 million yuan in 2012 to 4 billion 690 million yuan, and net profit has decreased by nearly 15 million yuan.

The responsible person said that due to changes in the market demand for consumption, the ability of department stores, especially the more high-end department store business enterprises to resist macroeconomic fluctuations, has been reduced.

At the same time, large scale department stores and electricity suppliers in the same industry also bring enormous competition pressure.