Department Stores Continue To Face Difficulties In The Next 12-18 Months.

The report points out that China department stores Sales growth lagged behind other retail channels, and the market share dropped from 20.5% in 2005 to today's low double digits. Recent sales trends show that the performance of department stores will continue to deviate from overall retail sales growth.

Fitch said that as the number of department stores increased, other retail modes such as shopping centers, stores and e-commerce entered the market, exacerbating the competition in the retail market. The rating agency expects that with the withdrawal of small and inefficient Department Stores operators, the Chinese department store industry will take a long time in the next few years. Market integration 。

In addition, Fitch expects that Chinese department stores will be in the next 12-18 months. financial leverage Higher, the capital expenditure promised earlier than the market downturn in 2011 will continue to invest at least next year. While the sales performance of department stores is still weak in the same store and the loss of new stores, the chance of rapid deleveraging is very small.

Fitch said its golden eagle business is a strategy to operate Department stores with its own property to help reduce capital expenditure in order to retain cash when the economy is down. Fitch expects Jinying commerce to maintain a neutral to positive cash flow after capital expenditure, but reducing its responsibility depends largely on the company's asset management strategy.

Another rated Parkson business group was transferred to Fitch's "BB-" last month, with a negative outlook. Fitch believes that in the environment of slowing economic growth, a larger proportion of fixed rents will give Baicheng profitability pressure. The negative outlook also reflects the continued decline in Parkson's same store sales since the first half of last year, and the performance in the future may deteriorate further.

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Beijing time on the morning of December 2nd, according to foreign media reports, Alibaba now inherits the traditional role of Amazon, becoming the number one public enemy of traditional retailers in the United States. At present, Alibaba is embroiled in a political struggle in Washington because of its global ambition.

Over the years, American entity retailers have been attacking Amazon, claiming that they benefit from the so-called "business tax loophole". Now, they are pointing at Alibaba. They believe that China's e-commerce giant will become the next beneficiary of the business tax loophole.

Main Street Fairness, a group made up of traditional retailers such as Target, Best Buy, Home Depot and JC Penney, has launched an advertisement for Alibaba, lobbying US lawmakers, saying Alibaba will "stifle" local retailers unless they introduce a bill to stop business tax loopholes.

Insiders say the move shows that Alibaba's US competitors are preparing to involve Alibaba in a political dispute, even before Alibaba launched the Taobao English version.

Main Street Fairness spokesman Joshua Baca (Joshua Baca) said: "we believe that Alibaba's use of tax collection loopholes is only a matter of time."

The Alibaba rebutted the video advertisement on Monday. Alibaba said: "this advertisement is seriously untrue. The Alibaba pays taxes according to the laws of the country in which the business is located, and is no exception in the United States. Through our various network assets, Alibaba is committed to providing us companies with opportunities to export their products and services to the Chinese market. "

Now, Amazon is no longer a target because it has changed its attitude to support the loopholes in business tax through legislation. But eBay still has objections that it will raise prices, thereby hurting the interests of small businesses on its website.

The advertisement was broadcast on television and the Internet on Sunday. "They just want to make use of anti Chinese sentiment," according to an industry executive who opposed traditional retailers.