Beijing Xidan Shop Lost To HK $20 Million, Loss Of Widened Department Store

Media reports October 31st, China

According to the latest results of the I.T group, the loss in the first half of August 31st has increased from HK $10 million 700 thousand last year to HK $20 million.

Statistics show that in 2013, I.T group and Lafayette department store invested 50% respectively to create Lafayette department store (China) Limited.

In September 28th of that year, Buddha opened in Beijing, China's first store, which is located at the junction of Xidan North Street and Ling Hutong, which is divided into six levels, covering a total area of more than 47 thousand square meters, covering luxury brands to popular brands.

However, I.T group and old Buddha

The development of the joint venture in China does not seem smooth.

In 2013, the loss of I.T group's retail business in the mainland market was HK $14 million, and the joint venture company suffered a loss of HK $10 million 700 thousand.

At present, the I.T group's mainland business has turned into a deficit to achieve a profit of HK $30 million, but the loss of the joint venture company has continued to expand to 86.92%.

For the joint venture company, I.T group said that in the current difficult business environment, this business will need more time to develop to make profit contribution.

The industry pointed out that the greater impression of Lafayette department left to consumers is the high-end rather than the trend, while the consumer groups in Xidan are mostly young people with a certain spending power, and the shopping idea of "local tyrants" who love luxury goods is obviously different.

They are equally sensitive to price, and the price difference of up to 30%-50% allows the group to choose more purchasing agents or foreign tourism consumption.

It is reported that recent

The Department also announced the appointment of Paul Burke as the first Chinese CEO to expand China's expansion.

Paul Burke previously was chief executive officer of Lane Crawford, and has 25 years of experience in international retailing.

He will report to Nicolas Houz & E, chief executive officer of department store department, and Shen Jiawei, chairman of I.T.

In other words, I.T. is a Chinese partner of Galeries Lafayette Department of Lafayette department store. In the future, both sides will continue to open the store of Lafayette department store in other cities of China.

At present, there are 64 stores in the world, 5 of them are outside the French market, located in Berlin, Casablanca, Jakarta, Dubai and Beijing.