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    Retail Business Sinking Three Or Four Lines Into A Trend Of Jiangxi Shopping Center

    2015/1/10 21:23:00 24

    Retail FormatThree Or Four LineTianhong Mall

    Since 2014, Tianhong emporium has been doing a lot in Jiangxi. In addition to the early capital increase project in Ji'an, Jiangxi, in 2014, it passed the development proposal of Nanchang Jiuhong Tianhong Plaza project, and decided to open a franchised store in the city. The company will give priority to the development of the Hong Kong investor relations activity record, released by the Tianhong mall. Regional market To speed up the expansion of the three or four line cities.

    A number of layouts were made in Jiangxi last year.

    The above Tianhong emporium announcements show that the company purchased property from Yingtan Huitong Real Estate Co., Ltd., located in the Xinjiang new area, Yingtan, Jiangxi, four South of weft Road, four West of the road, five North of the road, and seven floors below the five road to the East. The gross floor area is about 76 thousand and 500 square meters, and the total spanaction amount is about 329 million yuan. In addition, the company invested about 75 million 620 thousand yuan in decoration, equipment purchase and start-up cost.

    For the reasons for the purchase of the property, Tianhong mall pointed out that the business of obtaining Yingtan's central location at a lower cost is conducive to the development of the shopping mall format, grabbing the commanding heights of the local market, expanding the chain store network, realizing the synergy of the stores, and increasing the market share in Jiangxi, thus further consolidating the business position of the company in Jiangxi province.

    In fact, Tianhong mall has made many layouts in Jiangxi in 2014.

    In January 6, 2014, Tianhong emporium announced that in order to make the Ji'an project of Jiangxi province better adapt to market development, the company plans to increase investment in this project, and investment in housing construction, decoration and equipment purchase increased from about 263 million yuan to about 429 million yuan.

    In October 10th of the same year, Rainbow Department Store It is decided to open a new rainbow store in the northwest corner of the intersection of Fuhua Avenue and golf Avenue in the city of Qingdao City, with a floor area of about 10000 square meters and a supermarket.

    In December 8, 2014, Tianhong mall successfully passed the motion to develop a land complex in Nanchang, which is a successful Nanchang competition from Tianhong Real Estate Co., Ltd., which is the Nanchang Jiuzhou Tianhong Plaza project. The investment plan for this project is up to 1 billion 570 million yuan.

    For the layout of the company in Jiangxi, Tianhong shopping center has pointed out in the announcement that the company has gradually formed a group of stores in Nanchang, and Ganzhou and Ji'an projects in southern Jiangxi have all been opened up. The market layout of Jiangxi Southern has cut into the starting point; and the company is still blank in the northern part of Jiangxi province. The company should first expand the northern prefectural level cities such as Jiujiang and Jingdezhen to form a certain scale and expand the county-level cities in the northern part of the country. This helps to expand the influence of the three or four tier cities in the central part of China.

    The daily economic news reporter found that the performance of the rainbow mall was better in the central China market. In the first half of 2014, the region's operating income increased by 2.21% compared to the same period in the previous year, which was 11.44% higher than the total profit of the store, much better than that of the Southern China store.

       Retail format Sinking three or four lines into a trend

    In fact, in recent years, more and more retail formats have been sinking to the three or four tier cities. In its 2014 semi annual report, BBK pointed out that locating the core business circle of small and medium sized cities, and radiating the surrounding rural markets will not only avoid over heated market competition, but also seize favorable business opportunities before other large retail enterprises enter Hunan's small and medium-sized cities.

    According to the survey data from the North Business Research Institute, 90% of the new retail enterprises in the country have appeared in three or four cities, such as Qingdao, Yantai, Xingcheng, Taiyuan and Longyan. Yonghui supermarket official website data show that in its 162 stores, 60 are located in three or four line cities, accounting for 37%.

    Huang Wenjie, the executive director of the Guangdong provincial chamber of Commerce, told the daily economic news reporter that retail enterprises sank three or four line cities, one for "push", one for "pull". On the one hand, the number of shops in the second tier cities is too large, the market space tends to be full, the operating cost is rising, the decline of single store operation efficiency is an indisputable fact, which leads to the difficulty of opening shops and the higher location requirements in these places. Therefore, it is necessary to push the three or four line cities. On the other hand, the three or four line cities are affected by various factors such as the acceleration of urbanization development, the backflow of staff and the backflow of funds, which will stimulate the development of the retail industry, especially the department stores.

    According to a survey conducted by China Chain Store Association, the average sales growth of department stores in three or four cities in 2013 was 6%, while that in second tier cities was only 1.4%.

    But at the same time, some retail enterprises in the three or four tier cities are also not ideal. The semi annual report of Tianhong mall in 2014 showed that the net profit of Huzhou, Changzhou, Loudi, Quanzhou, Ji'an, Shaoxing and Yueyang were all losses.

    In this regard, Huang Wenjie believes that this does not mean that there is no development before the settlement of the channel stopped, many enterprises layout three or four cities often need five or six years of development, many of the loss of branches actually did not spend the incubation period, the loss is normal.


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