Year Old Department Store Has Made A Profit For The First Time In Three Years.

New year's profit forecast was issued by the year old Holdings Holdings Limited (China) Limited. It is expected that the group's performance in the year ended December 31, 2014 will be significantly improved and the first annual net profit since the end of December 31, 2011.

According to the data, the profit of 2013 was down 378%, and the loss was 219 million.

In the announcement, the group said in the announcement that the group implemented an effective business development strategy in 2014 to improve the performance of the group department stores, especially in the new department stores in the past two years.

Therefore, most of these department stores also improved their profitability in 2014.

In fact, this may be related to the ceaselessly shutting down shop of the year old department store this year.

By the end of 2013, the department store had 21 department stores. By the end of June 2014, there were 18 stores in the year's treasure store. At present, the official website shows that the number of year old department stores has dropped to 17, and most of them are concentrated in Shenzhen.

In addition, the old treasure department pointed out that

The improvement was mainly due to the effective business development strategy of the year old department store, the one-time demolition compensation received, and the group did not need to reconfirm any significant impairment loss and other related costs.

In the first half of 2014, a one-time demolition compensation of 12 million 310 thousand of the total rental property owners of one department store was received.

However, the 2014 semi annual report showed that the group turned into a profit, with a net profit of 1342 million yuan.

In addition, the year old department store also pointed out that in 2014, except for the 4 million 800 thousand yuan fine for the cancellation of the lease contract, the group did not have any significant impairment losses and fines. In 2013, the group made a total impairment loss of 161 million yuan due to the closure or poor performance of the department store.

The company said

It is expected that the audited results announcement of the group as of December 31, 2014 will be released in March 2015, following the provisions of the listing rules.

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According to the "2013 China 50 city complex strategic map" released by World Bank, the total volume of non residential buildings in 50 key cities in 2015 reached 564 million square meters, compared with 2013, the growth rate was 77%.

Some analysts believe that, whether from the national perspective or from the first tier cities, the total volume of commercial real estate has reached saturation, and even some areas have been overloaded. The growth of commercial property in the future will be faster than that of population growth.

In addition, the popularity of the Internet and smart phones, low-cost logistics and distribution services have greatly promoted the rapid development of online shopping, which makes the commercial real estate industry relying on shopping centers, department stores and supermarkets feel a deep chill.

On the other hand, changes in the office market are also showing new changes.

Experts predict that by 2025, 50% of the existing occupational types will no longer exist, and people will be engaged in more creative work.

This means that the existing mode of work in fixed places will change, and the development of the real estate industry should also be homeopathic.

Peter Andrew, director of the Asia Pacific Regional workplace strategy division, said that the slow changing real estate industry must now change from a simple space provider to an experienced planner and community creator, and to establish a "win-win" partnership with tenants and other participants.

Who can understand the new generation of real estate solutions and commercialize, who will be able to gain greater market returns.

Obviously, the era of winning and winning in the past is past.

O2O provides a good starting point for commercial real estate companies that actively embrace the Internet and take the initiative to change.

The concept of O2O (Online to Offline) was first derived from the United States, advocating that online consumers should be brought to the real business space, making the Internet the front desk for offline pactions.

And the initial O2O mode of "online ordering and offline consumption" is popular among the catering group buying.

Li Kaifu, chairman and chief executive officer of Innovation workshop, once said: "group buying instructed offline merchants to get local users online, and instructed users to search for local services through the Internet, and paved the way for O2O."

However, whether commercial real estate companies have built their own websites and developed their own APP have completed the O2O layout? The answer is obviously not so simple.

O2O is the logic behind the entry point of the commercial real estate Internet pformation, which is to adapt to the change of the entire industrial structure. The profit model of commercial real estate is changing from the past pursuit of sales to the demand of customers, providing high quality and all-round value-added services.

Only by emphasizing more and more perfect experience and service can we distinguish from other competitors and get customers' "sincerity".