Wanda Stores Strive To Make Profits Next Year, There Are 60 Stores.

Wanda is the largest department store in China and one of the core tenants of Wang Jianlin's Wanda Commercial real estate.

Wanda Commercial real estate is preparing for initial public offerings in Hongkong, but for Wanda Commercial Real Estate expansion of the Wanda Department store and Wanda's latest involvement in children's entertainment, electricity providers and other businesses, is independent of the quasi listed companies.

Wang Jianlin also designed a Hongkong listing path for Wanda Department store.

In 2012, Wang Jianlin adjusted the equity structure of Wanda Department store.

Through some trading arrangements, he set up an overseas company holding structure for Wanda Department store.

Reporters learned that registered Wanda Department Store in Beijing had a share change in October 2012, from Wanda Group and Wanda Commercial control holdings to Shenzhen Di Xun Industrial Holdings.

Shenzhen Di Xun industry's final parent company is registered in Hongkong's Di Xun investment.

The company was acquired by Wang Jianlin in 2012 and renamed Wanda Department Store in December 2012.

Only Wang Jianlin did not expect that the Chinese department store industry would have fallen so fast in the past two years under the impact of the Alibaba as the representative of the electricity supplier.

Last year, Wanda Department lost 7% of its profits and only 91% of its revenue.

This is the first time that Wanda has not completed its profit plan in history, and it is also the only unfinished index company of Wanda Group. At the annual work meeting, the executives of Wanda Department received Wang Jianlin's harsh rebuke without any expectation.

Not only Wanda, Baisheng group, Golden Eagle Business and President of Yintai business, but also look at the hot business and shopping centers, pondering how to turn salted fish to catch up with the next wave of shopping.

The share prices of the three companies have reached a record low, with negative year-on-year growth.

The decline of the Department Store led Wang Jianlin to consider the next road.

The interface reporter learned that in the past two years, Wang Jianlin had made some unknown arrangements in the architectural design of Wanda Plaza - he asked the design department to reserve two interfaces to the pedestrian street for each layer of Wanda Department store.

Ten thousand of one hundred goods really can not work, can immediately give the location to a more suitable main store, he said, "the big deal will cut off half of the Wanda Department store area, recruit other main stores, and introduce the pedestrian flow from the pedestrian street."

For iron fist Wang Jianlin, this is his worst plan, but he believes he has won the dusk of department stores.

He thinks that the problem of Wanda Department is in the internal management level. He said that although the online shopping is developing rapidly, as long as the department store is adjusted, sales and profits will continue to come.

In order to complete the listing of the necessary profit targets, Wang Jianlin gave Wanda's death orders this year, and did not hesitate to change hands.

A Wanda's "broken wrist" pformation has progressed more than half under Wang Jianlin's initiative.

Sun Jinghuan, general manager of Wanda Department, who took office last April, was dismissed from the post shortly after the Spring Festival this year. Shen Jiaying took over as general manager of Wanda Department store.

In addition, deputy general manager Kang Xiaoyan and many department stores, also because of performance problems have left.

Earlier, the first general manager of the Wanda Department, which was 5 years old, left the department store after he left Wanda.

He told reporters at the interface that the reason for leaving the industry is simple: department stores have lost their competitiveness - making commercial platforms less than electricity suppliers and shopping centers; vertical services are inferior to brands such as MUJI, ZARA, H&M, UNIQLO, or other service providers.

Wanda Department store, formerly known as Wan Department store, was founded in collaboration with Wanda Plaza's investment promotion and residential sales to support Wang Jianlin's nationwide expansion.

Wanda Commercial Real Estate prospectus shows that the headquarters and commercial property leasing and management services provided by Wanda Commercial real estate for Wanda Department store provide 1 billion 800 million yuan income for Wanda Commercial real estate.

However, as an important part of Wanda Plaza, Ding Yao's handicap is that he can't freely locate, invest and operate like other department stores.

The rapid expansion of Wanda Plaza in China has created a China's largest department store brand and pushed Ding Yao to an awkward position.

Wanda has not been regarded as a regular department store format because its profitability is too low.

Ding said the gross margin of Wanda Department Store is about 17% lower than the average level of the industry.

The era of horse racing is not over yet.

In October 31st, Wanda Department stores will open ninetieth stores in Wanda Plaza, Kunming.

According to Wang Jianlin's expansion plan, by the end of this year, the number of Wanda Department stores will exceed 100.

Every year, we have to follow Wanda Plaza to open more than 10 new stores in the whole country. A department store with only five or six years of growth experience does not have such a lot of energy and manpower to deal with profits.

"Opening a store needs to invest $50 million, and Wanda Department stores have 20 new stores a year on average.

Each shop will take about three years to make profits.

In the current expansion rate, the profits of existing stores can not catch up with the losses caused by new stores.

Wang Jianlin explained the loss of Wanda Department at an internal conference.

Wang Jianlin said at that time, Wanda Department stores now have 40 profitable stores, and 60 loss shops. With the maturity of operation, the next year's profitable shops will become 60, and the number will exceed 80 by the year after that.

In 2013, Wanda's total revenue was 15 billion 490 million yuan, an increase of 39% over the same period last year, and only 91% of the adjusted plan was completed.

After a drastic personnel adjustment, Wanda general merchandise seems to be improving.

In the first half of 2014, Wanda Department Store earned 11 billion 130 million yuan, an increase of 62% over the same period, and completed its first half year goal in three years.

The stores of Wanda Department store are still huge.

This is a double-edged sword, the stall is too large, and the overall adjustment will take a long time.

Wanda Plaza is also a commercial platform. In some projects, Wanda store has to compete with Wanda Plaza. During the tenure of office, Ding Yao has always wanted to solve but one problem that he can not solve is that Wanda's biggest competitor is not someone else, but near Wanda Plaza.

For this reason, Wang Jianlin quietly reduced the area of Wanda Department store.

Wanda Department Store is no longer a large department store, but it has become a medium-sized department store. Each shop has about 15000 square meters. It mainly trades in traditional department stores such as cosmetics, jewelry, watches and so on.

The interface reporter was informed that the Wanda Plaza, Longyan Wanda Plaza, which opened in November, and Fuqing Wanda Plaza, which opened in December, will be reduced to 4 floors.

In Yanqing County, Beijing suburb, Wanda Plaza, which is bidding for design, has no longer painted Wanda Department Store in the drawings.

At the same time, it is about to cut off Wanda's department stores, and perhaps the Wanda Plaza project of three places in Dongguan, Dalang, Harbin, Hanan and Hubei Shiyan.

Ding Yao, a helmsman of Wanda Department store, said Wanda's "cut down" department store is a good choice to respect the market.

In the cities with abundant business choices, it is difficult for department stores to find core competitiveness. "Thinking from a profit perspective, cutting off department stores, Wanda can actually do something more thoroughly."

Guo Zengli, director of China shopping center industry information center, also agreed with Wanda's "cutting" department stores in a second tier city. He thought Wanda's competitiveness was lower in the three or four tier cities with lower energy consumption level.

The lower the consumption level, the stronger the brand's dependence on department stores.

In such cities, it is still necessary to use department stores to solve the difficulties of investment and reduce the cost of developers.

Wang Jianlin sends greater hope that Wanda's O2O construction will open up online and offline channels.

He is working in conjunction with Tencent and Baidu to develop a "smart Plaza" integrating online and offline.

In this process, Wanda's penetration of nearly 100 City Department stores has become an important resource for O2O cooperation, and even a major factor in the development of O2O.

He also improved profit by collecting a variety of large data in department stores and increasing the experience of catering and entertainment.

At the half year working conference in 2014, he still put forward a very difficult goal: Wanda Department store must achieve 25 billion 200 million revenue this year, and strive to achieve next year's overall financial statement profit.

I believe that Wanda store will be listed in Hongkong in the future.

He even stressed that, as long as he is willing, he can now package and sell some of the assets earned by Wanda Department store.

But at present, he is fully sprinting the Wanda Commercial real estate and Wanda cinema listed on him, hoping to let investors see Wanda Department after losing profits.

"The four years of Wanda's department store are all in the target design. There will be two months by the end of this year. Next year is not far from the sunshine."

But the bearer is still empty.

even if it is

Cheng Dongdou, a brokerage analyst, said that there were no stories of investors wanting to hear about the department store.

John Ching recently began to feel depressed about choosing the wrong industry.

Last year, he often worked overtime to talk about the pformation of department stores for second days, and this year, he worked overtime to study other industries outside the department store.

John Ching thought it would be difficult to push department stores into Hongkong.

In particular, he displayed to the interface journalists a set of photos he had taken in his research. At eight in the evening, a famous department store in Kunming, which had been in business for seven years, looked out of the elevator and saw a whole three storeyed building without seeing a shopper.