Exclusive Interview: There Are No More Days When The Electricity Supplier Has Unlimited Scenery.

In November 4th, Chu Xiuqi, President of the China general merchandise business association, told an interview with our reporter that China's department store industry has been developing and growing for more than 20 years, and it is not easy to survive in the cracks.

Chu Xiuqi said that in the past, the department store industry could be said to be full of scenery and thriving, especially after the reform and opening up.

"I remember when I first joined the office in 1985, when the biggest department store in the country, the 100th goods in Shanghai, had an annual sales of about 1 billion yuan, when its sales amounted to the total output value of Yanan's industry and agriculture.

Now Shanghai department store belongs to Bailian Group. The year before last, Bailian Group entered the top 500 in the world, ranking 466.

And the sales volume of the 100th goods has been maintained at the level of 10 billion yuan.

In November 11th, Zhang Wei, director of the office of the general manager of the 100th goods store in Shanghai, said in an interview with the China Economic Times reporter that the first department store in Shanghai was founded in October 1949. It is the first large-scale state owned department store retailing after the founding of new China. The customer level is mainly composed of wage earners, and the products are positioned in the middle and popular.

"From the planned economy era, we have sales of 10 billions of dollars, which has remained unpopular for decades, mainly due to the impact of different formats and electricity providers, as well as state-owned enterprise mechanisms and other factors.

Of course, there are only more than 20 shopping malls in Shanghai, including more than 10 large department stores, and 3 from the department stores.

According to Zhang's recall, in the early days of reform and opening up, 100th passengers had the largest volume of passenger traffic in Tianda, 300 thousand people in the first few years, 40 thousand to 50 thousand times, and now only 20 thousand people.

"Now we can maintain stable sales volume. First, we rely on the prestige of the old brand. Two depends on the golden section, and the three is on the service.

Because old brands have good reputation, moderate prices, convenient pportation, many tourists, and face the whole country and the world, this has made us red flag for many years.

As far as I can tell, we will not fall down in at least 15 years, and it will be hard to tell later. "

Zhang said to people.

According to Zhang's introduction, the sales volume of Shanghai department stores has generally declined this year, and this year is a low tide. There are many reasons for the decline, such as the macroeconomic downturn, the cancellation of three public funds, and the impact of electricity suppliers.

Although the first department store is located in the golden section of Nanjing Road, its sales volume is relatively stable, and the reporter also felt the sense of crisis in the state owned old brand store from Zhang's speech.

"Our two buildings 70 thousand square meters of operating area, annual sales of 1 billion 500 million yuan, profits tens of millions of yuan, and more than 700 employees, also face great pressure."

The new world city of Shanghai, also on the way to Nanjing, has encountered unprecedented challenges.

Yao Lu, assistant general manager of the new world Limited by Share Ltd, said in an interview with the China Economic Times reporter that our annual sales had always maintained two digit growth in the past more than 10 years, and the growth rate slowed down in 2012. The first time in the first half of this year, sales and profits were "double down" (sales fell 1.12%, profits fell 2.94%). The slowdown in the second half of this year may still exceed this figure. We can say that this year is our most difficult year, and we have encountered the bottleneck of development.

In Yao Lu's view, the business situation of new world city is quite different from the past.

Now the whole entity store has fewer passenger flow, and there has been a "shortage of people". Only large sales promotion can usher in large passenger flow, and the number of shopping malls in work days has dropped by nearly 30% compared with previous years.

"In 1995, when the big promotion took place, the mall was full of people. Some people could not get in and blocked up the Nanjing road. At that time, the armed police also came to help maintain order."

Yao Lu said.

In the interview, the reporter learned that many of the entities' income and expenses already had "scissors difference", such as property costs such as hydropower coal and building depreciation, management fees such as personnel wages, pension co-ordination and so on, and increased financial costs such as interest rates increased year by year.

"Like us, these entities have made great contributions to the industry and are the best in the industry.

Now it is in a dilemma. It is a dead end not to expand the scale. There may be a chance to break through. "

Yao Lu said.

The new world is working with the Japanese side to create a new high-end City department store, which is expected to be formally completed next year.

Also told reporters that suppliers are also unstable.

A problem of relative concern.

"In the past, suppliers would like to enter our shopping malls, and relations may not come in. In 2013, empty containers appeared. The vacancy rate was 10% to 20%.

In 2008, we had 980 suppliers, only 817 now, and some of the suppliers have gone to the shops, because the cost of doing physical stores is too high and the sales volume is too small.

In November 10th,

Wang Liuhe, vice president and Secretary General of the Department Store Association, said in an interview with our reporter that in 2013, the whole department store in Shanghai had sales of about 100000000000 yuan. In 2014, 1 - September, sales decreased by 8% - 9% compared with the same period last year.

In Wang Liuhe's view, the northward Guangzhou first tier cities, commercial development, fierce competition itself, coupled with the impact of electricity providers, the decline is normal.

"This is a turning point or obstruction phenomenon in the development of the general merchandise industry, and the development of enterprises can not be smooth sailing. The current difficulties are temporary."

Wang Liuhe said, "from the form of department stores, last year and the year before last, we had anxiety and entangled mentality. After nearly two years of development, the mindset gradually moved towards peace."