Who Killed The Department Store? Retail Stores Closed 160 Stores In The First Half Of The Year

Parkson group released its performance report, net profit of 275 million yuan in the first three quarters of this year, a sharp decline of 23.1% over last year. Worse still, in fact, since 2012, Parkson has been shrinking its business in China and has closed 6 stores in two years.

As the first foreign department store to enter the Chinese market, the Parkson's every move reflects the status quo of the whole Chinese department store industry. "The winter of traditional department stores has arrived" has become a widespread concern in the industry.

According to data from Guangzhou daily, retail businesses closed 160 stores in the first half of this year, the highest in history. Among them, the large department stores closed 12 stores. In the second half of the year, the decline was still not improving. In July, Wangfujing store Guangdong Zhanjiang store announced that it was closed. On 12 1, the halls store will close the store in Xizhimen business circle, which is the third store closed by Beijing Hall in Beijing this year.

When the traditional department stores are in the doldrums, the electricity supplier market is "full of spring". In the "double eleven" that has just dispersed, Alibaba has set a sales record of 57 billion 100 million yuan, and suning.com, Jingdong mall and other electricity providers have also won a lot of money.

Behind the national "double 11" shopping carnival, we can also get a glimpse of the urgency of the transformation of traditional department stores. Last year's "double 11" period, some physical stores and supermarkets boycotted O2O activities, and this year, 28 department stores represented by Yintai business, Wangfujing department store and Guang Bai Department store participated in the "double 11" shopping Carnival O2O.

From wait-and-see, even boycott, and in a short time to active participation, the great changes in the attitude of O2O in department stores have also revealed their urgent need for transformation from another aspect.

　　 Department stores dilemma

The days of traditional department stores are getting more and more sad.

Taking Baisheng group as an example, net profit of 275 million yuan in the first three quarters was 23.1% lower than that in the same period in 2013, and sales fell 0.9% to 3 billion 740 million yuan. Especially in the third quarter, Parkson's net profit fell by 32.6% compared to the previous year, with a mere 22 million 570 thousand yuan.

Since 2012, the development of Parkson's business in China has encountered bottlenecks, while 6 stores have been closed down. In June 1st last year, Zhong Tingsen, the founder of the Parkson group, was once again the executive director and chairman. Of course, the return of clocks is also considered to be one of the main reasons why Baisheng has launched a wave of shops, which is intended to transform into small businesses.

It is not a Parkson group that operates poorly, nor can domestic owned department stores retreat.

Shenyang Wanguo classified statistics of 20 A shares department store listed companies in the first half of this year showed that the total operating income of 20 listed companies totaled about 43 billion 114 million, an average of about 7.09%, and net profit amounted to 2 billion 292 million yuan. Among the 20 listed companies, only 3 of Xi'an's people's livelihood, Nanjing Xin Bai and chengshang group's revenue grew in the first half of this year, while the remaining 17 showed a downward trend.

If you look at the industry from a larger perspective, the result of statistics is also not optimistic.

According to the data released in early 2013, China's department store's internal traffic began to grow negatively in 2012, and the reason behind this phenomenon is the emergence of new formats of shopping centers and urban complexes, which diverted the flow of traditional department stores.

The analysis report on China's chain retail enterprises' operation jointly prepared by the China Chain Store Association and DDT 2013-2014 shows that although the sales volume of the top 100 retailers in 2013 exceeded 2 trillion, the growth rate was only 9.9% for the first time, while the retail sales accounted for 10.8% of the total retail sales of consumer goods from 10.8% in 2009 to 8.7%.

On the one hand is the collective weakness of traditional department stores, and the news is constantly closed. On the other hand, the sales of electronic commerce have been swept up, and have continued to create a miracle of sales. The revenue of electric business has been climbing steadily in recent years.

In 2013, China's online retail market data monitoring report released by the China Electronic Commerce Research Center showed that in 2013, the proportion of online retail transactions accounted for 7.9% of total retail sales of social consumer goods, an increase of 1.6 percentage points over last year. According to the latest figures released by the National Bureau of statistics, the retail sales in the first half of 2014 amounted to 11375 billion yuan, an increase of 48.3% over the same period last year.

In the past "double 11", Alibaba sales hit a new high, reaching an astonishing 57 billion 100 million yuan, of which the transaction volume from mobile terminals reached 24 billion 300 million yuan.

　　 Who killed the department store?

Many people believe that the electricity supplier is the killer of the department store. The history of department stores' recession is exactly the history of "growth" of e-commerce. Moreover, more and more people are replacing the department stores with the Internet - even if they enter department stores, they are also trying to "code". The practice of buying clothes under the line is completely reduced to a "fitting room". However, in fact, the weakness of the traditional department stores has long been a harbinger.

tradition department stores The history of China can be traced back to a hundred years ago. The rise of department stores is mainly due to the upgrading of shopping experience brought about by the three main characteristics of complete goods, open price and open business. Especially after the reform and opening up, urbanization accelerated, and department stores sprang up all over the country, and gradually matured in the early 1990s and early twenty-first Century.

However, as Urbanization With the further development of the shopping center, the new format of shopping center has gradually expanded and matured. And the rise of the electricity supplier is to compress the survival space of traditional department stores. Wu Ruiling, Deputy Secretary General of China Chain Store Association, pointed out that in fact, before the electricity supplier, the growth of shopping center has led to the diversion of traditional department stores customers.

Du Yanhong, a retail researcher at CIC, thinks that the traditional department store industry has been in the "internal and external" situation. "By the strong impact of new formats such as e-commerce, shopping centers and so on, the traditional department stores' traffic and performance have declined sharply, and have become the fitting rooms of the electricity suppliers." Du Yanhong believes that e-commerce will continue to impact the department store industry at a very low price, and will shift the source of tourists from the offline to the online.

While shopping centers use similar formats, but provide more high-quality, diversified services and shopping experience to seize the market share of department stores. "Under the current diversified consumer demand and service characteristics, shopping centers are more favored by consumers." He judged, "the price is not as good as the electricity supplier, the service is inferior to the shopping center", is also the present traditional department store's actual situation.

At the same time, domestic Department Store The operation mode of "two landlords" has also become the bottleneck of its development.

"Domestic department stores actually belong to the two landlords. They are just a shop, a shop, do a good job in attracting investment, convening the brand, and then make profits through the rental venues and water points. This leads to a result: basically, the brands of these department stores are more than 80%, and the remaining 20% differences are, in fact, small brands. Qiu Yujun, analyst at Planet Retail, analyzed the times weekly reporter.

The most direct result of the "two landlord" mode is that the department stores lack the ability to develop products and purchase fashion products, and can not meet the increasingly diversified demand of consumers.

On the other hand, this rent dependent profit model is also challenged by the rising land prices.

In the view of Zhang Jiapeng, executive director of DTZ Rui Yide, with the progress of urbanization, land prices have also undergone tremendous changes, and the cost of property construction and decoration has also increased significantly. These have greatly increased the investment budget of retail property and stimulated the property lessor to have higher expectations of rental income. The profitability of department stores determines its relatively low rental affordability, and in recent years, profits have generally declined. Rents have become increasingly heavy burdens and have impede the continued operation of projects.

Of course, after the emergence of e-commerce, retail entities that once attacked department stores, such as shopping centers, are now on the same line with department stores.

"If we carefully compare every impact we have, we will find that they all follow the same principle, that is, who can provide consumers with the right goods when needed, and serve them more flexibly and more closely, who will be able to subvert the market." Zhang Jiapeng concluded.